Coinbase’s Blockchain Overview
By Ken Akure | 15 Sept, 2023 |
In the ever-evolving landscape of cryptocurrency and blockchain technology, new advancements and solutions are constantly emerging. The latest buzz in the crypto space is all about ‘Base’—Coinbase’s very own layer 2 blockchain Protocol. As one of the most prominent crypto exchanges, when Coinbase launches a new product, the industry takes note. This article delves deep into what Base is, its level of decentralisation, security concerns and Thresh0ld’s Planned Support for the Base Protocol.
What is Base?
Base is Coinbase’s state-of-the-art Layer-2 blockchain solution, crafted utilizing the Optimism’s OP Stack. Launched with an impressive portfolio of over 100 dapps and service providers in August 2023, Base is a beacon of high-speed transactions, near-zero gas fees, and sterling security mechanisms. Designed with a vision to onboard the next billion blockchain users, Base doesn’t stop at transactions. Its applications span diverse sectors, from finance to music and art.
Compatibility with Ethereum and EVM Chains
Absolutely. Base boasts comprehensive compatibility with the Ethereum Virtual Machine (EVM), allowing for smooth transitions of decentralized applications designed for Ethereum and other EVM chains. Renowned EVM-based applications like OpenSea, Aave, and Uniswap, among others, have seamlessly integrated with Base, tapping into its extensive offerings.
Thresh0ld’s Planned Support for the Base Protocol
Building on our legacy of supporting innovative Layer-2 solutions like we did for; Optimism, Arbitrum, Polygon, etc. We hope to enable support for Base as soon as possible. Stay tuned, and rest assured, you’ll be amongst the first to know when we do.
How Decentralised is Base?
While decentralization remains the foundation of the crypto realm, Base is unique. As of now, Coinbase operates the singular sequencer node on Base, holding considerable sway over transactions and fee structures. Future plans suggest potential third-party node integrations, but Coinbase’s control, especially over the Base Bridge that facilitates asset transfers with Ethereum, remains a key discussion point.
The Base Ecosystem
The Base ecosystem has been making waves, with its Total Value Locked (TVL) skyrocketing by over 300% since its launch. Built on Optimism’s OP Stack, Base champions security, affordability, and an amiable developer environment. Its EVM compatibility seamlessly brings together pre-existing Ethereum-based smart contracts, simplifying dApp development and deployment.
Security has been paramount in the Base design. Nestled within Coinbase’s protection framework, Base synergizes Ethereum’s inherent security structures with Coinbase’s top-tier protocols. Before its grand unveiling, Base underwent a meticulous six-month internal audit, spearheaded by a dedicated security team. This extensive review scrutinized everything from blockchain infrastructure to the security of the OP stack.
A noteworthy part of Base’s security audit was the incorporation of ‘fuzzing’. This avant-garde method identifies potential issues by infusing malformed code into the existing system, particularly focusing on critical junctures like the L2 blockchain bridge.
Beyond internal scrutiny, Base collaborated with over 100 external security researchers, ensuring a well-rounded review. Furthermore, their smart contract was audited by industry pioneers, OpenZeppelin.
Is There a Base Token?
No. Base has intentionally steered clear from introducing a native token. While other L2 solutions, like Optimism and Arbitrum, ventured down this path, Base has remained focused on using ETH as its gas token. This strategic decision emphasizes its commitment to Ethereum’s ecosystem and warns users to be wary of scammers peddling fake Base tokens.
Coinbase’s Base blockchain promises to be a game-changer in the L2 space. While its affiliation with a centralized entity like Coinbase has ignited discussions on its degree of decentralization, there’s no denying the sheer technological prowess and vision Base brings to the table. As it evolves, users and developers alike should keep an eagle eye on Base, for it’s set to redefine blockchain possibilities in the near future.
THRESH0LD is a self-custody MPC wallet infrastructure solution for companies building/scaling blockchain-based products (such as crypto exchanges, payment companies, NeoBanks, etc) We help you cut transaction fees, efficiently manage mass crypto transactions, save time with automation, and enhance security. We support 44 blockchain protocols and a DeFiBridge that enables swaps across thousands of assets. Thresh0ld is being deployed by over 80+ digital asset businesses across Africa, Australia, Europe, and Asia.
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