About a month ago, Coinbase launched its ETH Layer 2 solution, referred to as Base. The goal of Base is to make the lives of creators much more convenient for the construction of dApps or decentralized applications over on-chain.
This system is associated with Optimism and is constructed on the MIT-approved OP Stack.
The aim of this piece is to expound on the ways Base is designed for usage from a technological view and its association with Coinbase.
OP Stack Facilitates Base’s Interaction with Different Chains
The development of Base, which is a Coinbase system, revolves around Optimism’s fork. Optimism is an ETH Layer 2 solution. It assists with minimizing the procedure payment as well as the timing.
These benefits are possible because the process takes place over the blockchain network. ETH helps L2 with its main net in order to process the payments for it to benefit from decentralization and safety.
Optimism uses the help of rollups, which gather several payments prior to uploading them over ETH’s main net in one proceeding.
Due to this, the chain benefits through inexpensive methods for proceedings by minimizing gas prices.
In addition to it, the system is known as Optimism due to its supposition of proceedings being correct. They are only incorrect if the observers challenge or confront the proceedings.
For instance, if an observer is able to give proof of theft, the proceeding stops right there.
This results in the observer gaining and the negative actor facing loss. Amey Dandawate analyses research at the company of Delphi Digital. He had a few comments to pass regarding the ongoing situation.
Dandawate said that Optimism was selected by Base since Optimism’s codebase would be revealed quickly. He believes that it was also because they would face the least opposition through the EVM.
Evidently, Coinbase has worked with Optimism before in order to speed up the construction of the EIP-4844.
With the help of this upgrade, more information can be obtained for roll-ups. This will result in lower payments and increased proceedings.
On top of it, the exchange has also collaborated with the company as a Core Dev. This is done with Optimism over the OP Stack.
Dandawate reckons that due to this Optimism would have more chances of becoming a super-chain. Through the help of an OP codebase, they will be able to build more chains for various uses.
He further said that chains, e.g. Base, will have smooth interactions with other chains due to their usage of the OP Stack.
This offers them great advantages for the L2 chains, such as safety and coordination with the proceedings.
Base Enables On-chain Involvement for Retail Clients on Coinbase
Coinbase is searching for the latest methods to increase its sales and profits. This is due to the crypto world experiencing negativity amidst bear markets when investments and prices decrease.
Hence, different ways of earning, which would not impact the market situations, will be beneficial for them. As per research, last year for a couple of months, Coinbase gained revenue of approximately $600 million.
This result was worse than the one two years ago, which was about 75% more than the current one.
If it were not for extra ways of earning, they would have faced a much worse situation. For example, Coinbase provides debit cards, subscriptions, and transaction services, etc.
These extra services accounted for about half of the overall revenue, and they have been increasing every year.
Furthermore, with the help of Base, Coinbase could certainly evolve due to the exchange on-chain involvement, which is quite hyped nowadays.
Also, Coinbase announced that they will not be issuing any token for their L2 system, and will use the ETH one.
In addition to it, they are currently trading with shares that are available over the NASDAQ platform.
Hence, Base has most certainly enhanced Coinbase’s price, which is up to 6%. It has been quite worse lately, but Base might save them.