“There are no plans to issue unique tokens.”
Brian Armstrong, CEO of Coinbase, a major U.S. cryptocurrency exchange, said that the company has no plans to launch its own token for Ethereum (ETH) Layer 2 (L2) scaling solution “Base.” Decrypt reported.
In September, the company’s chief legal officer, Paul Grewal, said the company may issue tokens at some point in the future, but he has now indicated that he is taking a different course. It’s cool.
Armstrong says he wants to make Base more open to the broader community, rather than just Coinbase.
He continued that he wants to build it in a way that is interoperable with other cryptocurrency projects, while at the same time providing full support from major Coinbase to provide a sense of stability and trust.
Base was incubated by Coinbase and launched in August. It uses the open source technology group “OP Stack” provided by Optimistic Rollup’s “Optimism (OP)” as its foundation. We are also collaborating with Optimism’s autonomous decentralized organization, Optimism Collective.
At the time of writing, according to CoinGecko, it boasts the fourth highest total deposit amount (TVL) among L2, following Arbitrum One, Polygon POS, and Optimism. Approximately 44 billion yen (approximately 300 million dollars) has been deposited.
What is Optimistic Rollup?
A type of L2 technology designed to process more transactions quickly and reduce transaction fees (gas fees). It is a technology that processes transactions off-chain and submits them to Layer 1 in bulk, and operates on the assumption that the transaction data sent from L2 is correct. If there is any fraud, the transaction will be invalidated through “proof of fraud” and penalties and rewards will be awarded to those involved.
▶️Virtual currency glossary
connection:L2 “Base” supported by U.S. Coinbase, what is the background behind the rapid increase in the number of transactions and its importance?
Making transactions “less than 1 cent per second”
Armstrong said the company has an ambitious goal of reducing the time and cost of the average transaction on Coinbase to “less than 1 cent per second” by integrating things like the L2 network. He also said that he is holding it up.
In addition to Base, they are also keeping in mind the introduction of the Lightning Network, the L2 of Bitcoin (BTC), and high-speed Layer 1 such as Solana (SOL).
connection:What is the virtual currency Solana (SOL)? Key points and future prospects
Armstrong noted that approximately 7% of transactions through Coinbase use Layer 2, and has set internal goals to further increase this percentage as part of a multi-year initiative. He also explained.
What is Layer 2 (L2)?
This refers to the “second layer” blockchain. Writing all transaction history to the main chain increases the load, leading to a decrease in processing speed and a rise in network fees. Therefore, by recording part of the transaction history on an off-chain or side chain, it can be expected to reduce the load on the main chain and improve processing speed.
▶️Virtual currency glossary
Movement of OKX and Kraken
In addition to Coinbase, other exchanges have recently begun to launch L2. For example, in November, it was revealed that the virtual currency exchange OKX will launch an L2 network called “X1” using the development kit of the virtual currency Polygon (MATIC).
Kraken is also reportedly currently looking for partners to collaborate with on the L2 network. It is said to be considering partnerships with Polygon and Matter Labs, and Cardano founder Charles Hoskinson also expressed interest in partnering with Kraken.
connection: Virtual currency exchange OKX launches L2 “X1” using Polygon development kit