Executive Summary: What Is Base? Coinbase’s Layer-Two Chain Explained
In this article, I explain Base, the new layer-two chain launched by Coinbase using Optimism's tech stack. I analyze how Base aims to be a web3 gateway for Coinbase's 100M+ users, its initial centralized operation by Coinbase, potential opportunities and regulatory challenges ahead.
Summary: The article explains Base, Coinbase's new layer-two chain built on Optimism, analyzing how it works, potential opportunities and challenges, and its goal of bringing Coinbase users into web3.
What Base is:
- Layer-two chain developed by Coinbase, built on Optimism.
- Aims to be a web3 gateway for Coinbase's 100M+ users.
How Base works:
- Optimistic rollup chain, initially centralized block production by Coinbase.
- Targets Ethereum developers and Coinbase users.
- Leverages Optimism's tech like lower L2 fees.
Future opportunities and challenges:
- Onboards millions to DeFi, but incurs costs for Coinbase.
- Revenue sharing with Optimism, but no token due to regulation.
- Could be permissioned rollup requiring KYC.
- Significant hurdles before mass adoption.
Full article:
What Is Base? Coinbase’s Layer-Two Chain Explained | CoinMarketCap
CoinMarketCap Alexandria looks at Base — Coinbase’s newly-launched layer-2 solution built on the Optimism tech stack.
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