- This article will go into more depth about Base, including its functions, applications, and prospects for the crypto industry.
- Users and developers that interact with this cutting-edge Layer 2 blockchain must stay educated and take strategic actions as Base continues to develop.
Ethereum Layer 2 (L2) solutions have acquired a lot of popularity in the constantly changing world of blockchain technology because they provide better scalability, lower costs, and faster transaction throughput. Base, an L2 blockchain introduced on August 9, 2023, by Coinbase, a publicly listed cryptocurrency exchange, is one major addition to the Layer 2 ecosystem. This article will go into more depth about Base, including its functions, applications, and prospects for the crypto industry.
What Is Base?
An Ethereum Layer 2 blockchain called Base was created in association with another Ethereum Layer 2 blockchain called Optimism on the OP Stack. As the first blockchain established by a publicly listed firm, Coinbase, it represents a significant milestone. With Base, developers have access to Coinbase’s enormous community of 110 million verified users and more than $80 Billion in assets when creating decentralized apps (dApps).
Enhancing Ethereum’s Potential At Layer 2
Blockchain technology at the second layer refers to additional protocols or frameworks created on top of already-established blockchain networks like Ethereum (Layer 1). Without sacrificing security or decentralization, Layer 2 solutions’ main objective is to address the scalability and efficiency problems of the underlying Layer 1 blockchain. To accomplish these goals, a variety of Layer 2 technologies, such as state channels, sidechains, and rollups, have evolved.
Base uses optimistic rollups, a method for combining several off-chain transactions into a single on-chain representation on the Ethereum mainnet, to function on the optimism network. This method contributes significantly to the Ethereum ecosystem by improving scalability, transaction speed, and costs.
Examples Of Base Use
Base provides a wide variety of use cases, demonstrating its adaptability in the crypto space:
- Payment Applications
Base helps users make transactions using USDC or its native token, Eco, using payment applications like Beam. By permitting sign-ins using Twitter accounts and providing fiat-to-crypto and crypto-to-fiat conversion gateways, Beam streamlines user onboarding.
- Token Swaps
DEXs that function on Base, like Uniswap, Maverick, and Dackieswap, enable token swaps for users, improving liquidity.
- Liquidity Provision
On the Base blockchain, liquidity providers may take part in and profit from liquidity pools by using dApps like Uniswap, BaseSwap, and Dackieswap.
- Bridge-Building
Base provides a legitimate bridge that works with Ethereum wallets like MetaMask and Coinbase Wallet. Users can transfer ERC-20 tokens between Base and Ethereum; however, it’s important to note that Base to Ethereum withdrawals often take seven days.
- Launching DAOs
The Base network’s Aragon DAO formation protocol makes it easier to launch DAOs while supporting community-driven decision-making using smart contracts.
The Prospects For Base
The decentralized nature of Base and its dedication to openness and permissionlessness are emphasized throughout its roadmap. Although there are no plans to create a new network token at the moment, projects may decide to airdrop tokens in the future as a way to thank early backers and foster a strong community.
How To Connect To Base: A Quick Guide
Through Coinbase Wallet or another Ethereum Virtual Machine (EVM) compliant wallet, one can connect to the Base network:
- Using Coinbase Wallet, open the extension, login, connect to Base, and choose Base from the list of networks.
- Launch MetaMask, manually add Base using the network information, then join the Base network.
Base Network Benefits
Base has several benefits:
- Low-Cost
By using Optimistic Rollups, Base reduces gas expenses, boosting transaction throughput and affordability.
- Accessibility
Base makes deployment easier for developers by utilizing already-existing Ethereum-based tools and smart contracts because it is EVM-compatible.
- Scalability
L2 scalability increases the network’s capacity and transaction speed, providing consumers and developers with speedier and more affordable solutions.
Disadvantages Of Base Network
Although Base has many advantages, it also has certain drawbacks and issues:
- Centralization
Base presently uses Coinbase as the only sequencer node, which might concentrate the processing power of transactions. However, there have been hints of future intentions to incorporate outside nodes.
- Long Withdrawal Times
Base to Ethereum withdrawals can take up to 7 days, which may negatively impact the user experience.
- Security concerns
Base has security concerns because it relies on fraud-proof procedures, such as issues with participant incentives and vulnerability to data withholding attacks.
Conclusion
Since its debut, Base has had a big impact, gaining over a million customers and locking in a value of over $385 Million as of September 7, 2023. Its distinctive status as the first blockchain from a listed firm opens access to a larger audience and ushers more people into the Web3 space. Users and developers that interact with this cutting-edge Layer 2 blockchain must stay educated and take strategic actions as Base continues to develop.
