Coinbase Launches Ethereum Layer-2 Network, Base

Coinbase introduced Base, an Ethereum Layer-2 network, on August 9, 2023, without releasing a native token.

The introduction of Base by Coinbase signifies a strategic move to democratize blockchain scalability and increase developer adoption without the issuance of a native cryptocurrency token.

Coinbase has launched Base, an Ethereum Layer-2 network intended to improve blockchain scalability. The move builds on Coinbase’s extensive experience in the cryptocurrency exchange industry and its strategic collaborations.

Developed with the Optimism Collective, Base operates using ETH for transaction fees. Coinbase has explicitly avoided issuing a native token to prevent market distortions on the platform.

“Tokens distort what is being done on a network, so we have no intentions to bring any native tokens to Base, unlike other layer-2 networks.” — Jesse Pollak, Senior Director of Engineering, Coinbase

The introduction of Base could improve Ethereum scalability and user engagement. The network’s reliance on ETH rather than a native token is expected to maintain stability while fostering development.

The regulatory landscape for cryptocurrency might shift as Coinbase navigates post-launch dynamics. With the SEC dropping its case against Coinbase, a more supportive environment could accelerate adoption and institutional interest in Base.

Previous Ethereum Layer-2 launches, like Optimism and Arbitrum, resulted in notable increases in TVL and developer interest. These events illustrate the potential for Base to achieve similar outcomes due to its technology and ethos.

Kanalcoin experts indicate Base’s token-free model offers unique advantages, suggesting it could foster strong developer engagement without speculative interference, potentially reshaping Layer-2 adoption dynamics.