Layer 2 (L2) solutions help to enhance Ethereum's scalability, making it more accessible to a larger audience. Two notable L2 options are Optimistic Rollups (OP) and Plasma (POL). OP allows fast off-chain transactions by assuming their validity unless challenged.
At the same time, Plasma boosts scalability via child chains (which are smaller copies of the Ethereum mainnet) linked to the main Ethereum chain, batching transactions off-chain and committing them periodically to the primary chain. Both aim to augment Ethereum's capacity while maintaining its inherent security.
The latest buzz is around Base, an advanced new L2 solution designed to provide a secure, economical, and developer-centric platform for on-chain construction. It's been developed in collaboration with Optimism on the OP Stack framework.
What's Base?
Imagine a bustling city that only has a single main highway. As more people move to the city and buy cars, this highway becomes congested. That's Ethereum layer 1 (L1) – the main Ethereum blockchain.
To deal with the traffic, the city constructs overhead express lanes that are faster and can accommodate more cars, but they're still part of the city's road network. These express lanes are what we refer to as Ethereum L2.
What is Ethereum layer 2?
Ethereum L2 refers to a secondary framework or protocol built on the existing Ethereum blockchain (L1). The purpose of this layer is to increase the network's capacity, thereby allowing for more transactions per second, reducing fees, and alleviating congestion on the primary layer.
How does Base fit into this?
Using our highway analogy, Base is like a newly constructed express lane. It's built to be fast, secure, and efficient. Since Base is built as an Ethereum L2, it operates on top of the main Ethereum network, benefiting from its underlying security while providing multiple advantages:
Increased transaction throughput
Increased scalability
Lower gas fees
Improved privacy and security
Base launched its testnet back in February of this year, and with the 'on-chain summer' event in full swing, the mainnet has recently launched. There are currently over 100+ decentralized applications (DApps) and service providers in the Base ecosystem.
However, be aware of potential scammers. Base does not have its own network token and there are no intentions to release one in the future. While some L2s have their own tokens, Base stands out with its tokenless design, made possible largely due to backing from Coinbase. Always stay vigilant and avoid falling for fraudulent claims or schemes related to a so called Base token.
What are Base's main features?
Now we've explored Base's role in the L2 ecosystem, here's a breakdown of the advantages Base brings.
Leveraging Ethereum's robustness
Base is meticulously engineered to align seamlessly with Ethereum's primary network. This allows developers to deploy any Ethereum Virtual Machine (EVM) codebase onto Base, paving the way for existing DApps to transition or work in tandem without hitches.
Collaborative spirit
With its open-source DNA, Base is not just a platform — it's a collaborative endeavor. Its partnership with Optimism underscores its commitment to pushing the boundaries of what's possible in DApps.
Economical and efficient
Just like express lanes designed for rapid cross-city commuting, Base offers the extensive capabilities of Ethereum but without the hefty price tag. It serves as a haven for DApps, delivering a full EVM experience at a fraction of the customary Ethereum fees.
Pioneering additions
Base doesn't just emulate Ethereum's capabilities — it elevates them. Developers are equipped with new and inventive Ethereum tools such as Account Abstraction (ERC4337), gasless transaction APIs, and sophisticated smart contract wallets.
Solidifying ties with Coinbase
Base is uniquely positioned to streamline the transition of users and assets from traditional finance to Ethereum's decentralized realm. This integration offers unparalleled access to Coinbase's products, user base, and tools.
A commitment to decentralization
True to the core values of the crypto sphere, Base champions the cause of decentralization. While tied to Coinbase, Base is charting a course towards a progressively decentralized architecture, underscoring its dedication to trust, transparency, and inclusivity.
Security as a priority
Drawing strength from Ethereum's impeccable security features, coupled with the tried and tested best practices of Coinbase, Base stands as a fortress in decentralized applications.
Cost-effective evolution
By achieving full EVM equivalence, Base offers the richness of Ethereum's environment but in a more cost-effective manner — a testament to its commitment to accessibility and affordability.
Why Base?
For some, the crypto and blockchain ecosystems can be daunting, hindering the widespread adoption of DApps for daily use. With Base, as an L2 solution, DApps can become both user-friendly and economical. It makes sure of lower transaction fees, especially compared to the high fees seen during peak periods on their L1 counterparts.
Users can start their journey into the cryptoeconomy through Base, which acts as a bridge to various blockchain ecosystems. The platform offers a default on-chain experience and the ability to interact with multiple chains' products. For broad accessibility, Base emphasizes interoperability with different chains and, aligned to this, Coinbase aims to support multiple chains across its product range.
Collaborative efforts often bolster decentralization. In conjunction with OP Labs, the Base is pooling its engineering expertise to devise features that potentially enhance decentralization. It's anticipated that external contributions will play a pivotal role in augmenting the decentralization of the broader cryptoeconomic platform.
Working collaboratively has profound implications for decentralization. Institutions such as Coinbase, Base, OP Labs, and the Optimism Collective actively pursue avenues to decentralize decision-making and control within the OP Stack and the Superchain. By jointly establishing key governance structures, the intention is to integrate decentralization into vital segments of the OP Stack architecture, which could influence the decentralization level of associated rollups.
What's the Base ecosystem?
The Base Ecosystem Fund, with financial backing from Coinbase, can help secure a growing commitment towards advancing the DeFi ecosystem. This fund is specifically designed to propel early-stage innovations aiming to blossom on the Base platform.
While there's no shortage of promising ideas in the crypto space, Base has strategically positioned itself as an incubator for those crypto-native visionaries who are in the nascent stages of their project development, particularly those focusing on decentralized exchanges (DEXs), lending, NFTs, and more.
Base is keenly exploring an interesting niche — flatcoins, which is a type of stablecoin tethered to inflation rates. These digital assets aim to provide users with both stability in purchasing power and resilience against economic fluctuations. This need has become ever more crucial in light of the current global banking challenges. Base recognizes the importance of forging trust in an on-chain environment. The fund encourages projects working on decentralized identity and reputation and those crafting advanced decentralized exchanges with the potential for high throughput.
As DeFi continues to scale, ensuring the security and reliability of platforms and protocols becomes crucial. The Base Ecosystem Fund, therefore, also champions builders crafting tools and systems to make DeFi more secure, aiming to make on-chain storage safer for everyone.
The road ahead for Base
In February 2023, Base took a significant step forward by launching its testnet. This innovative platform has attracted praise from developers across the industry, characterizing it as a secure, economic, and developer-centric Ethereum L2.
Base's mainnet is accessible to all users. Over 100 DApps, protocols, and brands, such as Coca-Cola, OpenSea, and Aave, have been integrated into the network. To mark its launch, Base is initiating an "Onchain Summer" campaign that includes daily NFT distributions and incentives for users engaging with the network's DeFi platform. If you're a developer looking to build on Base, here are some helpful tools to get you started.
The final word
Base, an L2 solution, makes the crypto and blockchain realms more approachable, paving the way for the mainstream adoption of DApps. Addressing the sometimes high transaction costs of L1s, Base offers lower fees and acts as a bridge to multiple blockchains.
It prioritizes chain interoperability, mirroring Coinbase's multi-chain support ambitions. Collaborating with OP Labs, Base augments decentralization features, with external input deemed crucial for the platform's holistic decentralization.
Institutions like Coinbase, Base, OP Labs, and the Optimism Collective emphasize decentralization in decision-making processes. Together, they aim to embed decentralization deeply within the OP Stack framework and related rollups.
Base is now live on the OKX wallet. Start exploring today.
Disclaimer
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