• Coinbase has announced the launch of its own layer 2 blockchain for Ethereum (ETH) called Base.
• Base brands itself as a „secure, low-cost, developer-friendly“ way to build decentralized applications (dApps).
• There are no plans for issuing a native token and the plan is to „progressively decentralize the chain over time.“
Coinbase Launches Layer 2 Blockchain
Coinbase, one of the major US-based crypto exchanges has announced the launch of its own layer 2 blockchain for Ethereum (ETH), called Base. It is designed to serve as both a home for Coinbase’s on-chain products and an open ecosystem for developers. The exchange also stated that Base will be interoperable with other popular Layer 1 blockchains like Solana (SOL) as well as with Ethereum’s base layer and other Ethereum second-layer networks.
Features of Base
Base is meant to offer a “secure, low-cost, developer-friendly” way to build decentralized applications (dApps). Coinbase plans to progressively decentralize the chain over time and there are no plans to issue a native token. Furthermore, Coinbase has also stated that it will provide more detailed roadmap information and developer resources in the upcoming weeks.
Coinbase Stock Price Reacts Positively
The stock price of Coinbase listed on Nasdaq rose by 1.93% after news about this new network was announced. The stock slipped by 1.36% in pre-market trading on Friday but overall it has seen an 85.6% increase since the beginning of 2023 due to improved sentiment in the crypto sector.
Commentaries from Industry Professionals
Adam Cochran, partner at Cinneamhain Ventures commented on how this move by Coinbase gives them unparalleled reach across different networks and therefore could provide opportunities for greater innovation not just within their own products but within entire DeFi space too. He further went onto say that “it’s exciting when these types of projects give developers access outside traditional Web3 networks too”
Conclusion
Coinbase’s launch of its own layer 2 blockchain could have positive implications not only for their own products but also for other DeFi projects as well given their reach across different networks now which may lead to greater innovation in this space going forward