The Base layer-2 network is powered by Optimism and secured on Ethereum, and even though it is still in its testing phase at the time of writing, it has been described by crypto community members as a turning point for Ethereum.
According to coinpedia.org, the host of Bankless Shows believes that Base could set a precedent for other cryptocurrency companies and financial institutions to use Ethereum as their main settlement layer. Moreover, Syncracy Capital officials cited by the same source expressed their belief that Coinbase is well-positioned to onboard the next 10 million users and institutions to Ethereum.
There is some concern, however, as expressed by the general counsel of investment firm Delphi Labs, who pointed out that launching a centralized layer-2 network could potentially invite unwanted SEC scrutiny.
The Base Ethereum Layer 2 (L2) solution was designed to offer a secure, low-cost, and developer-friendly platform for building decentralized applications (dApps). The solution relies on ETH as its native gas token, which means that it does not need a new network token. Moreover, the project could make on-chain technology more accessible to more than 1 billion users.
Coinbase worked with the Optimism team to create an interoperable super chain that offers an open ecosystem for anyone to build dApps. In order to mark the occasion, Base has released a commemorative NFT called ‘Base, Introduced,’ which could be freely minted on OurZora for a limited time.
Other developments from Coinbase
In January 2023, New York financial regulators discovered that cryptocurrency exchange Coinbase violated anti-money laundering laws by failing to conduct adequate background checks. As a result, Coinbase will have to pay a USD 50 million fine to the New York State Department of Financial Services and is also required to spend USD 50 million on improving its compliance program. Coinbase disclosed that this investigation was in progress in its annual 10k filing in 2021.
In the same month, Coinbase decided to shutter its operations in Japan due to volatile market conditions and a low demand for digital assets. According to Reuters, the cryptocurrency exchange announced its withdrawal from Japan on 18 January 2023, just a few days after it announced a series of layoffs due to low demand for digital assets.
According to Oppenheimer analysts cited by the same source, the company has been keeping a close eye on the Japanese crypto market for some time but obtained its license from the Japanese regulator around a year and a half ago.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now