- Base is a fork of Optimism, one of the most active Ethereum layer 2 blockchains.
- Coinbase said it had thought about launching its own chain twice in the past but decided not to do it.
- Base will not have a token of its own.
Coinbase, one of the largest centralized cryptocurrency exchanges in the world, has surprised the market with a new product launch on Thursday.
Coinbase introduced Base, an Ethereum layer 2 network powered by Optimism, one of the most popular layer 2 blockchains. The new Coinbase product is open source but is still somewhat centralized, though Coinbase said Base will be decentralized progressively.
Coinbase stressed that Base will not have a token of its own.
Jesse Pollak, the engineer responsible for protocols at Coinbase, said that Base will be home to Coinbase’s onchain products as well as serve as an open platform for anyone to build.
“Our goal with Base is to make onchain the next online and onboard one billion users into the cryptoeconomy. In pursuit of this goal, Base will serve as both a home for Coinbase’s onchain products and an open ecosystem where anyone can build.”
While Coinbase had thought about launching its own chain twice in the past, both times it decided not to do it. However, the company said yes to Base because it believes it will accelerate the development of Coinbase’s onchain products, bring the exchange’s customers into the cryptoeconomy, and increase its investment in core crypto infrastructure.
Base is currently in testnet. The team behind the blockchain will share more information about its roadmap in the weeks ahead.
On the Flipside
- Coinbase provided no information on when Base will launch.
- Since Coinbase is a public and regulated company, the launch of Base will possibly attract regulatory pressure and scrutiny for Coinbase.
Why You Should Care
Coinbase is one of the most involved centralized crypto companies in the world. The company’s decision to fork Optimism and launch a layer 2 network to scale Ethereum is a huge milestone for Ethereum scaling and crypto in general. Users will be able to use Base to access and use Ethereum with cheap transactions.
Learn more about Coinbase’s financial results for Q4 2022:
Coinbase Posts Another Quarterly Loss Amid Regulator Crackdown
