Base Ecosystem

What is BASE network

BASE is a L2 blockchain system created by Coinbase. One of the main goals of BASE is to increase the scalability, capacity and interoperability, as well as to reduce transaction costs and settlement times on the Ethereum network.

Coinbase unveiled its own Ethereum L2 blockchain in early 2023.

The key objective of the Base blockchain is to provide a platform where developers can easily create their products and integrate them into the Coinbase ecosystem. They introduce the project as a “decentralized network for decentralized applications”.

Like other L2 blockchains, Base is designed to address ETH scalability issues, such as high gas and bandwidth fees.

Key partners & investors

Work on Base spans a variety of sectors including DeFi, social and gaming, with an element of fun and an optimistic, collaborative energy amongst the builders. Notable projects on Base include Airdrome, Morpho, Moonwell and Blackbird, a loyalty program for restaurants that uses blockchain.

At the same time, BASE key partners include:

• 0x
• Aave
• Animoca Brands
• Blockscout
• Dune Analytics
• Chainlink
• Quicknode and many more.

Also among the key investors in the entire Coinbase ecosystem, including BASE, include:

• Polychain Capital
• Tiger Global Management
• Tusk Venture Partners
• a16z (Andreessen Horowitz)
• Blockchain Capital
• 35Ventures and many more.

Key elements of BASE blockchain

The platform is a so-called Layer 2 (L2) blockchain on which financial and trading applications can be developed, traded on decentralized exchanges (DEX), provided lending services or issued tokens (including NFTs).

In addition, BASE is powered by Optimism OP Stack. With this modular system, BASE has gained the key property of seamless integration with the Ethereum ecosystem, improved scalability and lower gas cost.

Running on top of Ethereum makes any transaction on BASE much faster and cheaper for the user compared to ETH.

Also, BASE actually groups transactions into packages, compresses them, and then transmits them to the main network.

Interesting fact. Just a few days after its launch, Base overtook Optimism in terms of daily turnover of crypto assets on the network, but this was mainly due to speculative interest.

Ultimately, backed by cryptocurrency exchange Coinbase, the BASE infrastructure “offers a secure, low-cost and developer-friendly way to create decentralized applications,” while operating similarly to ETH-based Rollup systems.

Rollups are a technology that enables high scalability of tier-1 systems like Binance or Ethereum. The mechanism combines multiple transactions into one and sends them to the L1 blockchain. This solution significantly reduces fees for the end user.

The BASE ecosystem offers a range of solutions on which developers can easily launch their own projects. Among these solutions are:

• Frontend
• Backend
• Onchain
• Game SDKs

It is noteworthy that within the framework of cooperation with Optimism, some part of transaction fees in the BASE network is transferred to the treasury of Optimism Collective.

Token BASE?

Perhaps BASE is one of the few solutions on the market that does not have its own token. On the other hand, it has a number of features and advantages. The developers have not yet announced the launch of the token.

Even at the launch stage of testnet BASE, the developers emphasized that the L2 solution does not involve the issuance of a token. And ETH is used to pay commissions. However, Coinbase recently announced the possible launch of the cbBTC product. Commentators assumed that it is about its own version of “wrapped” Bitcoin.

Conclusion

As we can see, BASE represents a significant step forward in the evolution of blockchain technology, offering a scalable, secure and affordable solution for the next generation of decentralized applications

In addition, Coinbase is one of the crypto industry leaders. The cryptocurrency exchange, which is led by Brian Armstrong, has been instrumental in the adoption of cryptocurrencies by the masses. Base is well positioned to become an important part of the decentralized finance and Web3 ecosystem. The project is already attracting the attention of developers and investors, which shows its significant potential.