Coinbase, the second-largest cryptocurrency exchange by trading volume, recently unveiled the new Ethereum-focused layer-2 (L2) blockchain, called Base. The goal of this is to make it easier for developers to build decentralized applications (dApps) and for users to access those dApps through Coinbase products. Coinbase is building Base to bring a billion users into the crypto economy by expanding further into the developer space. The company targets to roll out the new platform later this year.
Coinbase’s Effort to Expand Further into the Developer Space
In the past, Coinbase has primarily focused on the trading and exchange side of its business. However, recognizing a window of opportunity in the developer space, the company has expanded its scope in improving dApps.
So far, the utility perspective has been a challenge for developers to build useful dApps and for users to use those things on-chain. With Base’s rollout later this year, Coinbase aims to provide a user-friendly experience for developers to build dApps and for users to access them according to an interview with Base lead Jesse Pollak.
Base: A “Secure, Low-Cost, Developer-Friendly” Chain for dApp Building
Based on the statements of Pollak, Base is a secure, low-cost, developer-friendly chain that allows developers to create dApps on-chain. It is developed in partnership with Optimism, a layer-2 blockchain platform that is also concentrated on the Ethereum chain, via the utilization of the MIT-licensed OP Stack.
A Wide Range of Crypto Businesses Committed to Building on Base
Several crypto-related companies, platforms, marketplaces, and infrastructure firms have already expressed their intentions of building on Base. Based on the source, these businesses include Chainlink, Blockdaemon, Quicknode, Etherscan, The Graph, Aave, Wormhole, Animoca Brands, Dune, Magic Eden, Nansen, Pyth, Rainbow Wallet, Ribbon Finance, and Gelato, among others.
Base is designed to be an open ecosystem that connects Coinbase users to the crypto economy and brings them to places that aren’t controlled by the network.
The Goal: To Bring a Billion Users into the Crypto Economy
Coinbase intends to establish a strong foundation for users and developers to onboard into the world of crypto through its Base project. The primary focus is on ensuring that Base is cost-effective, safe, and distributed. To turn this vision a reality, Coinbase plans to integrate the Base chain across several products, including its exchange, wallet, NFT marketplace, and developer tools.
Ecosystem Fund to Support Builders Developing on Base
To support builders developing on Base across the crypto ecosystem, Pollak revealed that Coinbase Ventures is launching an ecosystem fund that will mainly generate pre-seed investments. The fund will support builders developing on Base for financial tools, NFTs, gaming, and any other areas.
Final Thoughts
Base, the new Ethereum-focused layer-2 blockchain, is a significant move by Coinbase to expand further into the developer space and bring a billion users into the crypto economy. The company’s focus on making Base “secure, low-cost, and developer-friendly” will provide a user-friendly experience for developers and users to access dApps.
With a wide range of crypto businesses committed to building on Base and the interoperability with other blockchains, it is definitely poised to be an open ecosystem for everyone when it finally goes publicly live later this year.