Currently, a BASE token affiliated with Base Protocol (and not Coinbase) jumped by hundreds of percentage points when the Coinbase Base testnet launched. Some confusion has arisen due to the naming conventions. End users can use the official Base Bridge UI to onboard their ETH tokens from the Ethereum mainnet to Base. This makes sense since it is an L2 scaling platform for Ethereum. Instead, ETH will be used as the native gas token for Base. Coinbase has explicitly stated that they don’t plan to develop a native token for the new L2 blockchain. There is no native $BASE token on the Base blockchain. So, how do you invest in Base? There is No $BASE Token Base is the platform for onboarding these users. In the long term, Coinbase is betting on DeFi’s ability to bring hundreds of millions of new users to the crypto ecosystem, particularly from regions with poorly-developed traditional banking and finance systems. It promises low gas fees, fast transactions, and Ethereum’s underlying security. Using Optimism’s decentralized technology, Coinbase is trying to create an open, permissionless L2 ecosystem where developers can easily create a wide array of DeFi apps. This strategic partnership with Coinbase includes sharing revenues from Base with the Optimism Collective. The new L2 blockchain uses Optimism, a Layer-2 scaling solution for Ethereum. (Image via Coinbase Blog.)Ĭoinbase partnered with OP Labs, the team behind the Optimism project, to develop Base. Base is a secure, low-cost, developer-friendly Ethereum L2 built to bring the next billion users to web3. It represents a significant part of Coinbase’s long-term vision of bringing a billion users to the cryptocurrency ecosystem. What is the Base Network?īase is a Layer-2 (L2) network developed by Coinbase, North America’s largest centralized cryptocurrency exchange. In this brief, we explore the main features of Base and its impact on Coinbase, including the potential impact on COIN shares. Success with Base could have massive ramifications for Coinbase, crypto, and the wider global financial ecosystems. Base represents a strong push toward traditional companies moving into Web3, even while Coinbase is suing and getting sued by the SEC. It also comes at a sensitive time for Coinbase and the broader crypto ecosystem, as increased regulatory pressures have hit the industry hard. It’s also the largest launch of a Web3 project by a publicly-traded company. Similarly, Base will enable a kind of “dapp store” of DeFi apps built on top of it – and Coinbase gets a percentage of the revenue from each.)Ĭonsidering that this project comes from the world’s second-largest cryptocurrency exchange (and North America’s largest), expectations for the project are high. (As an analogy, think of Apple launching the iPhone platform, then opening an app store on top of it. Importantly, other developers can build apps on top of Base – and leverage Coinbase’s userbase to kickstart their own users. Like other L2s, the goal is to improve Ethereum’s speed and scalability. Base is an Ethereum Layer-2 project owned by Coinbase.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |