Expanding use of the virtual currency economic zone
On the 23rd, major US crypto asset (virtual currency) exchange Coinbase announced the original L2 network “Base” of Ethereum (ETH).
Base has already launched a testnet. We will focus on testing first, and will publish a roadmap for the mainnet launch in the coming weeks. The purpose of Base is to provide a network that is safe, inexpensive, and easy for developers to use. Ultimately, he hopes to attract more than 1 billion users and make it the foundation of Coinbase’s products.
1/ 🔵 We’re excited to announce @BuildOnBase.
Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps.
Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. pic.twitter.com/RmwZFJzGGs
— Coinbase (@coinbase) February 23, 2023
Base will continue to be developed by Coinbase, making use of its experience so far. After that, the plan is to gradually decentralize the network. On the other hand, he explained that there are no plans to issue Base’s own token. ETH will be used to pay gas bills.
Regarding the reason for the development, he explained that in order to attract billions of users to the cryptocurrency economy, it is necessary to make dApps (decentralized applications) cheaper, safer, and easier to use. To do that, he said, developers must be able to develop apps more easily than they are now.
He explained that Base is L2 of Ethereum, but said it was designed to be accessible to other L1 blockchains like Solana (SOL). He says he wants to be a bridge to the cryptocurrency economy and make it accessible everywhere.
And we will make it interoperable with other blockchains, and we will support as many blockchains as possible between Coinbase products.
A senior director of engineering at Coinbase reportedly told crypto media outlet Decrypt that the company aims to launch its mainnet in the coming months.
connection: US Coinbase 4Q earnings report, trading volume declines despite earnings forecast
Base utilizes the technology of “Optimism” that operates with a roll-up mechanism. It aims to be a foundation for developing highly scalable dApps while using the security of Ethereum.
What is rollup
A scaling solution that reduces network congestion by processing some transactions off-chain (outside the blockchain) while leveraging the security of the main blockchain.
connection: What is “Rollup”, a solution to the scaling problem | Detailed explanation of the mechanism and points to note
When the cryptocurrency media Bankless asked Coinbase CEO Brian Armstrong last year, “Why aren’t you creating your own chain for Coinbase?” Armstrong replied, “Because the technology isn’t ready. ” he replied.
Bankless commented that the announcement revealed that what Armstrong needed was the technology of Optimism, the L2 of Ethereum.
10/ What’s the @banklesshq take on this?
We interviewed @brian_armstrong last year, and asked “Why no Coinbase chain?”
He said: “Because the tech isn’t ready”
Clearly, the Ethereum L2 & OP Stack vision was what Brian needed to be convinced.
—Bankless (@BanklessHQ) February 23, 2023
Optimism’s OP token has increased demand and refrained from upgrading, and the price has risen this year. Since the announcement, CoinGecko is up over 200% year-to-date, up more than 6% over a 24-hour period at the time of this writing (see CoinGecko).
connection: Ethereum L2 demand increases, Optimism token hits all-time high