Coinbase, one of the leading cryptocurrency exchanges in the United States, has recently launched its Ethereum Layer 2 solution called "Base." This new platform is meant to serve as a home for Coinbase's on-chain products, as well as an open ecosystem for developers to create new crypto projects.
According to the company's blog post, Base is built on the Optimism network and aims to be a low-fee network with full EVM (Ethereum Virtual Machine) equivalence. While Ethereum initially secures Base, Coinbase has expressed its intention to integrate other Layer 2 solutions and Layer 1 networks in the future, such as Optimism, Arbitrum, Solana, and Avalanche.
One of the key benefits of Base is that it allows developers to reach over 110 million Coinbase customers and the $80 billion in assets kept across the exchange's existing platforms. Coinbase has also stated that Base will be fully open-source and outlined a plan to decentralise the network fully by 2024.
It's important to note that Coinbase has no plans to issue a native token for Base. Instead, transaction fees will be paid in ETH, the native token of the Ethereum blockchain. Coinbase's stock (ticker COIN) reacted mildly to the news, rising only 0.93% on the day at the time of writing.
Overall, Base represents a significant step forward for Coinbase in its efforts to expand its product offerings and make crypto more accessible to a wider audience. By providing a low-fee, open-source, and interoperable Layer 2 solution, Coinbase is positioning itself as a leader in the rapidly-evolving crypto ecosystem.