The Pulse

Onboarding the Masses: Coinbase Ushers in New Era with Base

Coinbase is launching Base, an Ethereum Layer 2 network that aims to offer a secure, low-cost, and developer-friendly way to build decentralized applications or dApps on-chain. 

Base is built on the OP Stack to remain decentralized, permissionless, and open to everyone. It will serve as the home for Coinbase’s on-chain products and an open ecosystem for anyone building Ethereum scaling solutions and dApps. 

Coinbase is working with OP Labs and the Optimism Collective on a plan to scale Ethereum in a decentralized way. Together, they aim to create a robust developer ecosystem of interoperable L2s and rollups that will help onboard the next billion users into web3. 

The plan is to create a “Superchain” by having multiple rollups increase their interoperability until they form a mesh that scales Ethereum jointly. Coinbase and OP Labs recognized that the Ethereum Improvement Proposal (EIP) 4844 was the missing piece required for Ethereum to enable L2s that would achieve the 10-100x cost savings, and make the cryptoeconomy more affordable for mainstream users. 

They worked with the Ethereum core development community to accelerate EIP4844 from “sometime in 2024” to the next Ethereum hard fork, with a target of summer 2023. Base will be part of the Superchain, and Coinbase will contribute to the funding of the core public goods infrastructure of both the Superchain and the broader cryptoeconomy. The principles that guide the roadmap for the OP Stack and the Superchain include decentralization as a priority, recognizing that decentralization takes time, and that collaboration accelerates decentralization.

Coinbase’s vision

Coinbase sees itself as a primary gateway to on-chain activity, and it believes that Base and the protocols built on top of it, including Coinbase developed dApps, will not only be positive for the company’s bottom line, but will also provide positive tailwinds to the broader crypto economy.

For the broad majority of Coinbase’s users, a simple, relatively riskless solution to interacting with Web3 is highly desirable. The firm aims to provide a default, out-of-the-box experience, with the goal of stripping user fears of interacting with blockchains, which is a major friction point in Web3 onboarding.

In addition, they aim to bootstrap its 110 million verified users to facilitate cost-effective dApp user acquisition.

Despite the name, Base is not a token, and there are no plans for a BASE token airdrop. Rather, it is an infrastructure layer for protocols looking to acquire new users, and a direct integration into the world of Web3 for Coinbase users.

In conclusion, Coinbase’s Base could potentially provide a user-friendly gateway for its 110 million verified users to enter the world of Web3 and benefit the broader crypto economy. As the transition to Web3 continues to unfold, it remains to be seen how Coinbase’s Base and other projects will shape the future of the decentralized ecosystem.

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Nacho is a writer for The Pulse. He is mostly involved in NFTs, Bitcoin and Ethereum ecosystem. Freedom advocate.
ModSquad for the Impact Theory Discord and admin for The Pulse
Building The Pulse.

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