Coinbase Launches Base: the Product Will Change the DeFi Ecosystem

• Coinbase launched a new crypto product Base. Apparently, the Base Mainnet will change the DeFi ecosystem. 
• With the launch of Base, many DeFi enthusiasts will gain access to a wide range of services and products. In fact, the Base Mainnet will give users access to more than 100 dApps and service providers. 

Coinbase is the largest crypto exchange in the United States. However, it is continually expanding its service to include new features for its user base. Despite the court case the crypto exchange faces with the Securities and Exchange Commission, it continues with its objectives for the year. Apparently, one of these plans is launching a new layer 2 network that will help provide access to many services. Already, users will get access to more than 100 dApps and services through this layer 2 solution. 

What is Coinbase Base? 

1. Base is very much simple to understand if it is explained very well. It is an Ethereum Layer 2 scaling solution built using the Optimism stack, giving it an edge. Apparently, the type of technology Base uses gives it the ability to perform some tasks which might seem hard for other solutions. Because of the development process of this layer 2 network, the major benefits lie in scalability and the security it provides. 
2. Moreover, Coinbase considers this product as something that will attract more users to the blockchain network. Coinbase built the Base using four principles as its fundamentals. Empowering the technology using Coinbase, getting secure by the Ethereum blockchain, being open-source, and low costs are the core principles. With the layer 2 solutions Coinbase is building, they want to also improve interoperability on the Ethereum network. Base plans on following the “Superchain” vision to achieve their objectives. 

Is Base A New Kind of Layer 2? 

It is very important to note that Base has its own features and advantages, but it is not the first product with such features. In fact, many other exchanges went ahead of Coinbase in creating similar solutions. 

Apparently, the most prominent on this list is Binance Chain (BNB Chain). You can see the same thing with Bybit after creating the Mantle L2  for their users. Furthermore, Metamask creating Linea L2 is part of this category. 

Important Details About Coinbase Project 

• According to Coinbase, they see Base as a product that is “built to bring the next billion users to web3.” Apparently, the new project stands on 4 principles. They are secured by Ethereum, empowered by Coinbase, low cost, and open source. 
• Base is leveraging the Optimism Stack to build its L2. Furthermore, it is the same set of technology powering Optimism. 
• The Base ecosystem is quite huge and is already expanding. Apparently, more than 30 projects are already existing on the blockchain. Some of them include SushiSwap, Basedex, RocketSwap, and many others. 
• There are big names partnering with Base on this project. Some of them are Coca-Cola, Oakcurrency, Opensea, OptimismFND, and many others. Furthermore, Coinbase has the opportunity of scaling this project to the highest level. 
• Apparently, they have over $5 billion in cash and can easily pump it into the Base project. Furthermore, there are already distributing more than 100 ETH tokens as grants to those building on Base. According to expert opinions, many protocols are happy building on Base. 

Profit, Opportunities, and Competitors on Base 

• The profitability rating of this new project is quite high, as it brought in more than $700k within the first 3 days of the unofficial launch. Assuming it makes this every day, that’s about $85 million annually. 
• Nevertheless, this project faces serious competition from all angles. L2 solutions like $MATIC, $ARB, $OP, and $IMX are some of the major competitors. Binance is also the closest thing resembling the model of Base. It is the same crypto exchange having a  blockchain network. 
• However, Coinbase looks set to break down limits. Moreover, it has more than 110 million users and $130b worth of assets. 

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So in summary, I'm excited for the future of Base and the upcoming opportunities it could unlock.

I think it's an undeniable positive for the DeFi space as a whole, and I'm looking forward to witnessing how the chain develops.

— Miles Deutscher (@milesdeutscher) August 8, 2023

Conclusion

In conclusion, Coinbase seems to be going to many places with the type of projects they are building. The new Base product is a layer 2 network that will help improve interoperability and scalability on the Ethereum network. More than 30 projects are already live. Moreover, more projects will be added.