Major US-based crypto exchange Coinbase has announced the launch of its own Layer 2 blockchain for Ethereum (ETH) is called the base.
The Base brand positions itself as a “secure, low-cost, developer-friendly” way to build decentralized applications (DApps), and as a home for both Coinbase’s own on-chain products and an open ecosystem for developers. will work as
The exchange announced the launch in a blog Post on Thursday, where it also said that Base is already open to developers on the testnet.
“With Base, we aim to make on-chain the next online and get 1B+ users involved in crypto,” the announcement said. It also pointed out that Base will be interoperable with other popular layer 1 blockchains (such as Solana).Fifth note of musical scale), as well as the base layer of Ethereum and other Ethereum second-layer networks.
Progressive Decentralization and No Tokens
The announcement states that although Coinbase is “incubating” the new network, it plans to “progressively decentralize the chain over time.”
It further clarified that there are no plans to issue a native token for the chain, thus challenging the widely held notion that new tokens are somehow necessary to ensure the security of decentralized protocols or networks.
The immediate next steps will be to ensure a successful base testnet, and then to share more developer resources along with a more detailed roadmap “in the coming weeks,” the announcement said.
coin rises
Shares of Coinbase, listed on the Nasdaq Stock Exchange, rose 1.93% for the day yesterday to $62.36 as the new Layer 2 network was announced. However, the stock slipped 1.36% to $61.51 in pre-market trading on Friday as of press time.
Coinbase has seen a rebound in its share price this year along with a rise in crypto prices. Since the start of 2023, the stock is up a respectable 85.6% on better sentiment in the crypto sector.
Coinbase Has “Unique Access”
Commenting on the launch of Base, Adam Cochrane, partner at CinemaHan Ventures and contributor to several DeFi projects, said he believes people will be surprised by Base’s feature set. He added that this would happen even if the network was not optimally superior to existing Layer 2 networks such as this one.
“Tech is important, reach is better,” Cochran wrote on Twitter, while pointing out Coinbase has “unparalleled reach on both the user side (110M users) and the partnership side.”
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