Coinbase’s New Blockchain Platform Boosts Ethereum Confidence

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Cryptocurrency exchange Coinbase’s newly launched layer-2 network, Base, has received a positive response from the Ethereum community. The layer-2 network, powered by Optimism and secured on Ethereum, aims to become a platform for building decentralized applications (DApps) on the blockchain.

While still in its testnet phase, the move has been described by members of the crypto community as a “massive confidence vote” and a “watershed moment” for Ethereum.

What is Base?

The base is a new Ethereum Layer 2 (L2) solution created by Coinbase that offers a secure, low-cost, and developer-friendly platform for building decentralized applications (dApps). It aims to make on-chain technology accessible to more than 1 billion users and does not require a new network token since it uses ETH as its native gas token.

The base is an open-source platform that leverages the expertise of Coinbase and the Optimism team to create an interoperable super chain, providing an open ecosystem for anyone to build dApps.

The project was incubated inside Coinbase and leverages its decade of experience in the crypto industry. To celebrate its launch, Base has also released a commemorative NFT called “Base, Introduced,” which can be freely minted on OurZora until Sunday at midnight EST. The platform has also opened registration for interested developers to start building on Base.

Anyone interested in learning more about Base can join the Overview of Base with core contributors event scheduled for 9:30 am PT / 12:30 pm ET.

0/ Hello world.

Meet Base, 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.https://t.co/Znuu3o3pJw

— Base (@BuildOnBase) February 23, 2023

A Massive Vote of Confidence for Ethereum

Ryan Sean Adams, the host of the Bankless Show, believes Coinbase’s move is “a massive vote of confidence for Ethereum” and could set a precedent for other cryptocurrency companies and financial institutions to use Ethereum as the settlement layer of choice. With Coinbase boasting 110 million verified users and partnerships with over 245,000 companies in more than 100 countries since its establishment in 2012, the potential for onboarding new users to Ethereum is significant.

A Watershed Moment in the Ethereum Rollup Ecosystem

Ryan Watkins, the co-founder of crypto-focused hedge fund Syncracy Capital, describes the news as a “watershed moment” in the Ethereum rollup ecosystem. Watkins believes that Coinbase is “likely no one better” positioned than to onboard the next 10 million users and institutions to Ethereum.

Centralized Layer-2 Network Concerns

Not everyone is bullish, however. Gabriel Shapiro, general counsel of investment firm Delphi Labs, expressed concern that launching a centralized layer-2 network “opens the door” to unwanted SEC scrutiny. Shapiro believes that this move could accelerate the SEC’s “secondary market” agenda with blockchain securities issues.

overall, if indeed Coinbase’s motives are regulatory in nature, it’s not only a bad step for them, but could threaten dangerous collateral damage to the rest of the ecosystem

if their motives are regulatory, they should’ve waited till all the infra can be really decentralized

— _gabrielShapir0 (@lex_node) February 23, 2023

Despite concerns from some members of the crypto community, the launch of Base has received a positive response overall. Let us wait and see how the Layer-2 network develops and impact the Ethereum ecosystem