Just In: Coinbase Unveils New Product “Base” To Rival Layer-2 Networks

Crypto News:  What comes as a surprise to many, the cryptocurrency exchange, which has the largest user base in the United States, has now officially ventured into the Layer-2 game. During the ethdenver, the Californian crypto giant has unveiled "base", a test version of its new ethereum layer 2 network.

Coinbase is initiating the Layer-2 network.

According to Jesse Pollack, the senior director of engineering for Coinbase Global Inc., Base has been modeled after Ethereum’s Goerli testnet, and it is planned to eventually connect to the main Ethereum network sometime later. Base’s initial fees will be similar to those of ArbitrumOptimism and will vary from 10 to 50 cents; but, over the course of the following year, those fees are expected to decrease to less than 1 cent. At the time of writing, Ethereum’s price is trading at $1,661 with a market cap of $203 billion.

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The channel is currently in the testnet phase, but the start date of the main network has not yet been determined. For those of you who don't know, testnets are real-world test environments that simulate the use of a blockchain. Layer 2 blockchains are independent blockchains that are created on top of layer 1 blockchains, also known as base blockchains. Blockchains are designed to eliminate scale-up and data-related bottlenecks, and are generally much faster and less costly.

speaking on the launch of Base, Pollack was quoted as saying:

Our goal with Base is to launch a platform that makes it really easy for developers to build apps that users actually want to use and then plug that into the COINBASE product suite to make it really easy for users to use those apps.

Database's missing a native chip.

Furthermore, Pollack has confirmed to media outlets that Base would not have its very own dedicated cryptocurrency. He also said that efficient networks like this do not need tokens.

At the time of writing, the value of a certain obscure token related to Base Protocol has increased by more than 40% since the publication of this particular piece of crypto news. The token does not bear any resemblance to the existing base network offered by coinbase.

The open-source OP Stack, a blueprint for compatible blockchain Layer 2 networks that were developed by the Ethereum Layer 2 network Optimism, serves as the foundation for Base’s construction. As the foundation developer for the operational stack, coinbase will also join the optimistic team.

Within the same period, coinbase also announced the launch of the core ecosystem fund. The fund will make it possible to invest in and help start-up businesses that will be added to the base. In response to the news, currency shares (coin) surged 4.20% as markets opened on Thursday, currently trading at $63.02.

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