Coinbase, the second largest crypto exchange, recently launched testnet for our latest product “Base”, the layer 2 (L2) Ethereum network. The new product will provide a secure and effective solution for building decentralized applications (dApps) on-chain, according to the official announcement.
The proposal of the crypto exchange Coinbase is to create on-chain “the next online,” bringing millions of users to the crypto economy. Base will be home to Coinbase’s on-chain products and an open ecosystem where anyone can build and develop new technologies, according to the exchange. The company added:
We’re incubating Base at Coinbase, leveraging our last decade of experience building crypto products, and plan to progressively decentralize the chain over time. We have no plans to issue new network tokens.
What is the Basics of Coinbase and How is Crypto Profitable?
Base is open source for developers powered by Optimism, an Ethereum-based L2 network that supports the OP Stack, a modular, open-source platform for scalable blockchain interoperability. This open-source protocol allows developers to build blockchains to efficiently meet the needs of specific users.
According to the exchange, Base is designed to provide easy and secure access to Ethereum L1 and L2 and other ecosystems such as Solana. Layer 2 refers to the secondary framework or protocol that is built on the existing blockchain. This protocol aims to solve the transaction speed and scaling issues that affect the blockchain.
In addition, Base is built with security and scalability for developing dApps. With Ethereum’s base security, along with Coinbase’s practices, users can access Base from Coinbase, Ethereum Layer 1, and other interoperable chains.
Additionally, Base will operate with Ethereum Virtual Machine (EVM) compatibility, the program that runs Ethereum smart contract applications. Base will offer a fraction of Ethereum’s EVM cost for multi-chain applications built securely with an easy-to-use bridge, according to the announcement:
Base has a vision to be an open ecosystem, seeded with Coinbase’s products, users, and assets. We will work with the wider community to bring it back to life. We are happy to have an amazing community that will contribute to making Base a strong ecosystem.
Coinbase also announced the foundation for the Base ecosystem, which will support projects built on the L2 network that meet the crypto exchange’s investment criteria. Coinbase concludes:
Our focus is to ensure a successful testnet. In the coming weeks, we will share our roadmap to the mainnet and provide more developer resources to build on Base.
COIN shares have rallied since the announcement. COIN opened at $58 per share on the Nasdaq. COIN shares are currently up 2.83% in the last 24 hours and can be traded for $62.50 per share.
Feature Image from Unsplash, chart from TradingView.