Deniz Tutku · Follow
Published in · 4 min read · Aug 11, 2023
Coinbase is following in the footsteps of WhiteBIT and has decided to launch its Mainnet this year, naming it Base. Alongside popular exchanges like Binance and WhiteBIT, Coinbase is considered one of the largest crypto-oriented corporations in the world.
Coinbase is more than just a cryptocurrency exchange. The company develops crypto wallets, offers staking and custody services, and provides tools for developers.
Now, Coinbase aims for Base to be the “home for Coinbase’s products, users, and assets.” This means that leading cryptocurrency developers are expected to be attracted to Base due to its vast user base and Coinbase’s asset pool.
Here’s what you should know about Base:
1.Base is a second-layer Ethereum blockchain (L2) developed by Coinbase.
2.Base started its journey on August 9, 2023, allowing users to bridge their ETH from the Ethereum Mainnet to Base.
3.Base holds high expectations due to Coinbase’s reputation as a major player in the crypto industry.
4.Base is designed as a decentralized open-source blockchain, though it will still be significantly influenced by Coinbase.
Superchain with OP Stack
The OP Stack is a standardized open-source development stack that developers can use to create blockchain networks. The OP Stack consists of various software components managed and supported by the Optimism Collective.
The main goal of the OP Stack is to create a “superchain,” a network of L2 chains that share governance, upgrades, communication layers, bridges, and open-source development stack.
Base is the second L2 built using the OP Stack (following the Optimism Mainnet). If the superchain gains traction, decentralized applications built on Base can seamlessly integrate with the superchain and interact across multiple chains.
The Optimism Collective
The Optimism Collective is a crypto community of companies and developers that manage and support the OP Stack. The Optimism Foundation leads the Optimism Collective, with Coinbase joining as the second major developer working on the OP Stack.
Key points about The Optimism Collective:
The Optimism Collective aims to provide funding to developers creating public goods for the crypto community. The governance of the Optimism Collective is in the hands of OP token holders who can submit and vote on various types of management proposals, including fund grants, protocol upgrades, treasury allocations, and more. Coinbase will contribute a portion of fees earned from Base transactions to the Optimism Collective.
“By properly rewarding public goods, we can create a collaborative ecosystem that will grow, expand, and flourish, creating a sustainable future for the optimism digital city, Ethereum, and the open Internet,” commented The Optimism Collective.
Drawbacks of Base L2:
1.Decentralization: The degree of decentralization in Base is a concern highlighted by the crypto community.
2. Optimistic rollup limitations: Another issue is the delay in withdrawing funds from the optimistic rollup to L1. This delay serves as a security feature, allowing time for optimistic rollup to rectify fraudulent transactions. This delay is called the “challenge period,” during which any user can dispute suspicious transactions.
3. Dependence on the OP Stack: Base L2 is vulnerable to periodic changes and updates introduced by the Optimism Collective. New protocol updates presented in the OP Stack could introduce new risks in the form of bugs, cyberattack vectors, and Base operational failures. Changes could also impact regular Base operations.
“Transferring from Ethereum to Base usually takes just a few minutes, but this timeframe is not guaranteed. Transferring from Base to Ethereum takes about 7 days,” commented Coinbase.
Important Information About the Base Blockchain:
- Base doesn’t have a native token (unlike, for example, WB Network, which has WhiteBIT Coin).
- Gas fees are paid in ETH. Base doesn’t have a governance token, unlike other L2 chains like Optimism and Arbitrum.
- Base Mainnet opened to users in August 2023.
- Base saw its first rug pull as meme coin developers named BALD drained millions of dollars from the market.
- Currently, Coinbase is promoting Base through the “On-chain Summer” monthly campaign.
- Users can mint commemorative NFTs, earn tokens by completing quests on the network, and more.
Comparison Between Base and WB Network:
1. Unlike Base, WB Network has its native asset — WhiteBIT Coin. To use Base, you need ETH.
2.WB Network operates on the Proof-of-Authority (PoA) consensus algorithm, a reliable structure relying on trusted nodes for block validation. This approach ensures network stability and security. Base uses Ethereum’s base security along with Coinbase’s best practices.
3. WhiteBIT organized a retro event to reward users for actively participating in network testing and related tasks. In contrast, Base conducted an airdrop, allowing participants to receive up to $15,000.
4.While developing WB Network, WhiteBIT have come up with the idea of creating WB Soul Ecosystem that will become a foundation for lots of exciting Web3 products on their own blockchain. Soulbound Tokens are assets associated with a specific Soul on the WB Network. Base, on the other hand, was established as a “home for Coinbase’s products, users, and assets,” attracting leading cryptocurrency developers to leverage Coinbase’s extensive user base and asset pool.
In Conclusion
Coinbase’s strategic decision to launch its Mainnet, Base, reflects a significant advancement in the dynamic cryptocurrency landscape. Going beyond its role as a mere exchange, Coinbase has fostered an all-encompassing ecosystem that includes crypto wallets, staking services, custody solutions, and developer tools.
Ultimately, Base serves as a testament to the ever-evolving nature of the crypto realm, where major industry players such as Coinbase are driven not by complacency but by the pursuit of limitless horizons. Navigating the intricacies of Base’s integration into the superchain paradigm, the crypto community reaffirms that innovation and collaboration remain the driving forces in this dynamic and transformative sector.
