Coinbase CEO Says “Base Is Now the No. 1 Layer 2 Solution by Number of Transactions Processed”

by

As a researcher with a background in blockchain technology, I am particularly excited about the advancements being made by Base, a Layer-2 blockchain solution built by Coinbase on top of the Ethereum network. The scalability and efficiency challenges faced by Ethereum have long been a barrier to widespread adoption, and solutions like Base are essential in addressing these issues.

Coinbase constructed Base, aLayer-2 platform, on Ethereum‘s foundation. Layer-2 projects, like Base, are engineered to boost Ethereum’s scalability and productivity. By offering a secure, economical, and developer-friendly ecosystem for creating decentralized applications (dApps), Base aspires to make a significant contribution.

Here’s how it works:

    Rollups: Base leverages the power of “rollups,” specifically optimistic rollups. This technique bundles large batches of transactions off of the main Ethereum chain, processing them on Base for faster and cheaper execution. Only a compressed summary of the batch is then submitted back to the Ethereum mainnet for final settlement.Ethereum Security: By settling transactions back onto the Ethereum mainnet, Base inherits the robust security and decentralization properties of Ethereum.OP Stack: Base is built using Optimism’s OP Stack, an open-source toolkit for creating interoperable, cost-effective, and scalable rollups. This shared infrastructure envisions a future “superchain” of connected Layer-2 networks.

As a analyst, I would express it this way: I aim to help Base enable the effortless and cost-effective development of decentralized applications (dApps) on its platform, ensuring they provide user experiences comparable to traditional web apps. Simultaneously, my priority is to safeguard the Ethereum ecosystem’s security throughout this process.

During Coinbase’s earnings call on May 2, 2024, Brian Armstrong, the CEO, emphasized substantial progress made in Base. He intriguingly compared the development of blockchain through Layer 2 solutions to the internet’s transition from dial-up to broadband. This transformation is crucial as it lays the foundation for an extensive array of new applications within the crypto economy, showcasing blockchain technology’s potential.

As an analyst, I’ve observed that Base, a technology developed by Coinbase, has made significant advancements in improving the speed and affordability of crypto transactions. According to Armstrong, these enhancements are crucial for us at Coinbase to achieve our goal of processing an average of one second or less for every crypto transaction with under a penny fee across the globe. The implications of Base on the crypto transaction market are substantial, as transaction fees and confirmation times have both seen significant reductions. This progress aligns with our mission to make crypto transactions as smooth and cost-effective as possible.

In the opening three months of 2024, developer engagement with Base experienced a remarkable surge, registering an eightfold rise compared to the previous period. This significant uptick suggests heightened trust and curiosity surrounding its functionalities. Notably, within the past thirty days, Base managed to handle over twice the number of transactions that Ethereum Layer 1 had processed in its entirety up until then. This impressive feat not only highlights Base’s exceptional capabilities but also solidifies its status as the foremost Layer 2 platform when considering transaction volume.

One major improvement to Base is the reduction of transaction fees by around 80%, achieved through several protocol updates. These reduced fees, frequently costing less than a penny, are highly beneficial for both users and developers looking for cost-effective and swift blockchain transactions.

As a researcher studying the latest developments in digital finance, I’m excited to share that Armstrong recently announced the addition of US Dollar Coins (USDC) on Base, which is available across all Coinbase products. This integration brings about nearly cost-free and swift global transactions in a stable, USD-pegged digital currency.

Read More

2024-05-03 15:13