Tag: base

Coinbase Identifies Four Key Innovations for its Layer-2 Network

Coinbase, a leading cryptocurrency exchange, has outlined four critical innovations that should be built on its newly launched layer-2 network, Base. The exchange believes that the implementation of these innovations will help to strengthen the network and enhance user experience. The network is powered by the layer-2 network Optimism and secured by Ethereum, and the innovations include an on-chain reputation system, an on-chain limit order book exchange, tools for the decentralized finance (DeFi) ecosystem, and inflation-pegged “flatcoins.”

Coinbase is one of the largest cryptocurrency exchanges globally, and it launched its layer-2 network, Base, approximately a month ago. The network is secured by Ethereum and powered by Optimism, another layer-2 network. Coinbase is now looking to add new features to the network to enhance its functionality and user experience.

The first innovation identified by Coinbase is an on-chain reputation system. This system will allow users to build a reputation on the network based on their actions, and it will help to incentivize good behavior while deterring bad actors. With the implementation of an on-chain reputation system, users will be able to trust each other more, and this will increase the adoption of the network.

The second innovation is an on-chain limit order book (LOB) exchange. This feature will allow users to trade cryptocurrencies with a higher degree of control over their orders. By using an LOB exchange, users can set specific price targets and ensure that their orders are executed at the desired price. This innovation will help to improve the trading experience for users and increase liquidity on the network.

The third innovation is tools that will make the decentralized finance (DeFi) ecosystem safer. DeFi has gained significant popularity in recent years, but it is still a relatively new and untested market. Therefore, it is crucial to have tools in place that can mitigate risks and increase the security of the DeFi ecosystem. Coinbase’s tools will aim to enhance the security of DeFi applications and protect users from potential hacks and scams.

Finally, Coinbase has identified inflation-pegged “flatcoins” as another critical innovation that should be built on its layer-2 network. Flatcoins are stablecoins that are pegged to the inflation rate of a specific country or region. By using flatcoins, users can protect their funds from inflation while also maintaining stability. Coinbase believes that the implementation of flatcoins will increase the use case for cryptocurrencies and make them more accessible to a broader range of people.

In conclusion, Coinbase’s layer-2 network, Base, has the potential to become a significant player in the cryptocurrency market. By identifying these four critical innovations, Coinbase is positioning itself as a leading innovator in the space. As the network continues to grow, it will be exciting to see how these new features will shape the future of the cryptocurrency market.

Base Unveils Its Decentralized Superchain Vision Powered by OP Stack

Base, the Ethereum Layer 2 (L2) solution incubated at Coinbase, recently spotlighted its unwavering dedication to decentralization, aligning seamlessly with the Superchain vision. Born out of a collaboration with the Optimism Collective, Base utilizes the open-source OP Stack, aiming to bring a billion users and a million developers into the blockchain ecosystem. This ambitious goal is anchored in the principle of decentralization, seen as the linchpin for a global, open, onchain economy. 

The OP Stack, maintained by the Optimism Collective, is the open-source development stack that powers Optimism. It comprises various software components that together form Optimism’s backbone, designed as a public good for both Ethereum and Optimism ecosystems. The stack’s primary focus is on creating a shared, high-quality system for generating new L2 blockchains.

This coordination on shared standards helps avoid repetitive software creation in isolated silos. While the current core of the OP Stack is infrastructure for L2 blockchains, it extends to tools like block explorers, governance systems, and more. The Bedrock release of the OP Stack supports the Optimism Superchain, a proposed network of L2s sharing security, communication layers, and a common development stack.

The choice of the OP Stack as the foundation is strategic. Recognized as a universally accessible asset, it beckons every developer. As teams like Base and OP Labs converge, the mission is clear: reinforce the OP Stack. This shared aspiration with the Optimism teams paints a picture of Ethereum’s future—a “Superchain” of interconnected rollups and L2s.

Base’s commitment to decentralization isn’t just theoretical. The platform is on a quest to decentralize its core while bolstering the OP Stack. With technical advancements on the horizon, Base aims to transition from a Stage 0 to a Stage 2 L2, a categorization attributed to Ethereum’s co-founder, Vitalik Buterin. This collaboration with the Optimism Collective promises to elevate the OP Stack’s trifecta of scalability, reliability, and decentralization.

On the technical front, Base’s roadmap is laden with milestones. From refining op-geth and op-node for enhanced scalability to backing the op-reth initiative for diversified clients, the path is well-defined. Additionally, the advent of “Pessimism” is set to amplify the OP Stack’s monitoring prowess.

Base’s allegiance to the “Law of Chains” is steadfast. This framework sketches out standards for Superchain protocols, emphasizing neutrality and a decentralized security model. It also offers a protective shield for users and operators. Base’s launch strategy is meticulously crafted to obliterate centralization bottlenecks.

In a philanthropic stride, Base pledges to allocate a portion of its sequencer revenue to the Optimism Collective. This contribution is earmarked as either 2.5% of Base’s sequencing revenue or 15% of L2 transaction profits after accounting for L1 data submission costs. Moreover, Base’s foray into onchain governance is commendable, with prospects of acquiring up to 2.75% of the OP token supply over six years.

In conclusion, Base’s fervor for the Superchain vision is palpable. In synergy with the Optimism Collective, the objective is lucid: establish a robust foundation for the OP Stack and the Superchain, heralding a new era in the blockchain realm.

Native USDC Integration on Base Blockchain

Circle has announced the upcoming launch of native USDC on the Base blockchain. The announcement, part of Circle’s #StableSeptember series, outlines the benefits and implications of this integration for both developers and users.

Key Takeaways

– Native USDC will be the “official form” of USDC for the Base ecosystem.

– The token aims to replace the currently circulating bridged USDbC liquidity originating from Ethereum.

– Native USDC will be “fully reserved and always redeemable 1:1 for US dollars,” according to Circle’s official blog.

– The launch will facilitate institutional on/off-ramps.

The Official Form of USDC

According to the official blog post from Circle, native USDC issued by Circle will be considered the “official form” of USDC within the Base ecosystem. The token address for this native USDC is 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913. This move is expected to gradually shift liquidity from the bridged USDbC token, which has its roots in Ethereum and holds the token address 0xd9aAEc86B65D86f6A7B5B1b0c42FFA531710b6CA.

Liquidity and Transition

The blog post also mentions that over time, native USDC liquidity “may replace” the currently circulating bridged USDbC liquidity. Base will collaborate with ecosystem apps to offer a smooth, optional transition from USDbC to native USDC. Importantly, there will be “no immediate changes to Base Bridge,” which will continue to operate as usual.

Institutional On/Off-Ramps

One of the key benefits cited is the enablement of institutional on/off-ramps. While the blog does not delve into specifics, the 1:1 redeemability for US dollars suggests a level of stability and trust that could attract institutional investors.

Upcoming Launch Details

Details about the launch, including the ecosystem apps that will support the swap from USDbC to native USDC, will be shared by @BuildOnBase on the launch day. A tweet from Coinbase confirmed that both native and bridged USDC will “continue to coexist on Base.”

Summary of Coinbase’s Base Network

Base, incubated within Coinbase, is an Ethereum Layer 2 (L2) network designed to offer a secure, cost-effective, and developer-friendly environment for building on-chain applications. Launched on February 23, 2023, in testnet phase, Base is developed in collaboration with Optimism and is built on the open-source OP Stack. It aims to provide enhanced scalability, faster transaction speeds, and reduced gas fees, all while maintaining the security measures of Ethereum’s mainnet. Base also offers seamless integration with Coinbase’s ecosystem, giving developers access to 110 million verified users and over $80 billion in assets. Despite rumors, Coinbase has clarified that they do not currently plan to issue a new network token for Base; ETH will serve as the native gas token.

Implications and Future Outlook

The integration of native USDC into the Base ecosystem could have far-reaching implications. It not only offers a more stable and official stablecoin option but also potentially streamlines transactions and lowers costs. As #StableSeptember unfolds, more details are expected to emerge, shedding light on how this move will shape the Base ecosystem and beyond.

In summary, the upcoming native USDC launch on Base is a noteworthy development in the stablecoin arena, offering benefits like enhanced liquidity and institutional access. As the launch date approaches, all eyes will be on how this integration impacts the Base ecosystem and the stablecoin market at large.

USDC will integrate into Polkadot, NEAR, Base, Cosmos' Noble, and Optimism this September

Circle, the company behind the USDC stablecoin, is set to expand its digital dollar to six new blockchain ecosystems. The move comes as part of Circle’s “Stable September” initiative and aims to provide developers and businesses with a more versatile and secure stablecoin experience. The expansion will increase USDC’s native availability from nine to fifteen blockchain ecosystems.

Multi-Chain Expansion of USDC

Circle has announced that it will extend the reach of its USDC stablecoin to five new blockchain ecosystems in September, including Base, Cosmos via Noble, NEAR, Optimism, and Polkadot. A sixth addition, Polygon PoS, is slated for October. This expansion follows Circle’s recent launch of its Cross-Chain Transfer Protocol (CCTP) on mainnet and the introduction of its Web3 Services pillar and Programmable Wallets.

According to Circle, “the expansion of USDC to six new blockchain ecosystems enables developers to build on a stable foundation with a fully reserved digital dollar they can trust.” This move is expected to offer businesses and their users a “faster, safer, and more efficient way to send, spend, and exchange value around the globe.”

Supporting Blockchains Detailed

Base

Base is an Ethereum Layer 2 solution designed to onboard the next million developers and billion users. It is built on OP Stack in collaboration with Optimism and is currently incubating at Coinbase. Base aims to serve as an easy-to-use bridge for Coinbase users.

NEAR

NEAR is a high-performance blockchain that offers frictionless user onboarding and a unique scaling solution built on sharding technology. The integration of USDC into NEAR aims to “empower developers to integrate stablecoin payments flows into JavaScript or Rust-based decentralized applications.”

Noble

Noble is an appchain in the Cosmos ecosystem focused on simplifying asset ownership and transfer within the Inter-Blockchain Communication (IBC) ecosystem. USDC issued on Noble will be accessible to dozens of appchains via a seamless IBC integration.

Optimism

Optimism is an Ethereum Layer 2 solution that utilizes Optimistic Rollup technology to improve transaction throughput. The integration is expected to result in “significantly faster and lower-cost USDC transactions.”

Polkadot

Polkadot aims to facilitate an internet where independent blockchains can exchange information in a trustless manner. Circle plans to bring USDC to Polkadot via the Asset Hub parachain.

Polygon PoS

Polygon PoS complements Ethereum’s decentralized security and aims to appeal to the general public while maintaining decentralization.

Conclusion

The expansion of USDC to six new blockchains is a significant step in Circle’s commitment to delivering a stablecoin with the “widest reach, developer optionality, and the simplest, most secure user experience.” With this move, Circle continues to solidify its position as a leader in the stablecoin market.

OKX NFT Adds Base, Linea Support, Beyond Ethereum, Optimism, Polygon

OKX, a key player in the Web3 technology landscape, broadened its NFT Marketplace’s capabilities by integrating support for Base and Linea blockchains on September 5, according to press release shared with Blockchain.News. This move follows the company’s earlier decision to include Base and Linea in its wallet services, thereby extending the marketplace’s compatibility to 17 different blockchains.

OKX has already supported NFTs on Ethereum, Solana, Binance Smart Chain, Polygon, OK Chain, Immutable X, Aptos, Optimism, Klaytn, Arbitrum and Avalanche Chain.

Base and Linea: A Technical Overview

Base, an Ethereum Layer 2 (L2) solution, is built on the open-source Optimism Stack. It aims to tackle the blockchain trilemma of scalability, security, and decentralization by offering interoperability and composability for participating rollups. The inclusion of Base also brings liquidity from OpenSea, a major NFT marketplace, into the OKX ecosystem.

Linea, a project by ConsenSys, employs Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK) cryptography technology. The Ethereum L2 solution is designed to enhance transaction throughput while maintaining a secure environment, aligning with the broader push for scalability in the Ethereum network.

OKX’s Multichain Strategy

The OKX NFT Marketplace is notable for its extensive multichain support, accommodating over 11 blockchain networks. It serves as a centralized hub for NFT transactions, including buying, selling, trading, and collecting, making it one of the most comprehensive platforms in the Web3 space. Major NFT marketplaces like OpenSea, LooksRare, and Magic Eden are among those supported.

Strategic Implications

While OKX has been known for its partnerships with high-profile brands and athletes, including Manchester City F.C. and McLaren Formula 1, the company’s core focus remains on technological innovation. Its recent global brand campaign, “The System Needs a Rewrite,” underscores its commitment to challenging the status quo through Web3 technologies.

The integration of Base and Linea is more than a mere addition of new features; it’s a strategic move that could have ripple effects across the NFT and blockchain sectors. By supporting a diverse range of blockchains, OKX positions itself as a versatile platform capable of adapting to the evolving needs of the Web3 community.

Friend.Tech Boosts Security with CoolWallet on Base Chain

Friend.tech, a decentralized social media platform operating on Base’s Ethereum layer-2 chain, has been a significant contributor to Base’s recent growth. Base is a secure, low-cost, builder-friendly Ethereum layer-2 chain designed by Coinbase to bring the next billion users on chain. It has become a favorite for DApp developers and early investors due to its outstanding performance and the innovative projects it attracts.

According to the latest data, the platform has surpassed one million daily active users and has a total value locked (TVL) exceeding $35 million. The platform allows users to buy “shares” of other users to chat with them, emphasizing the concept that “Your network is your net worth.”

However, this rapid growth has also attracted cybersecurity threats, notably phishing attacks. These social engineering tactics have been a significant concern in the Web3 sector, with losses already amounting to $650 million as of June 2023. High-profile individuals like Mark Cuban and Vitalik Buterin have also fallen victim to such attacks. To mitigate these risks, Friend.tech strongly recommends its users to employ hardware wallets for enhanced asset security.

In response to these security challenges, CoolWallet, a hardware wallet maker that natively supports the Base ecosystem, has initiated a Web3 Guardian competition. This campaign aims to raise awareness about its Web3 SmartScan feature, which proactively screens all Web3 transactions and flags any malicious behavior or smart contract vulnerabilities. The SmartScan feature is available on the CoolWallet App and offers an added layer of protection against phishing attempts.

To further promote Web3 asset protection, CoolWallet is launching a global competition with generous rewards for participating users. The competition aims to enhance user security awareness and encourage the use of SmartScan for safer transactions. This move is particularly timely, given the increasing number of phishing attacks targeting not just individual users but also high-profile personalities in the crypto space.

The Web3 Guardian competition is expected to draw significant attention, especially among Friend.tech users who are already concerned about asset security. The competition will not only offer rewards but also educate users on the importance of transaction screening, a feature that is often overlooked but crucial in the current landscape of frequent cyber attacks.

Ethereum's Layer 2s Break New Ground in Scalability

Ethereum has marked a commendable 22% upsurge in its value as of September 2023, surpassing many substantial smart contract blockchains, according to Will Ogden Moore’s article on Grayscale blog. The escalation is significantly credited to the advent of Layer 2 solutions (L2s) which have been instrumental in bolstering Ethereum’s scalability, rendering the network 100 times more cost-effective for its users. The endorsement of this paradigm came with the launch of BASE, a Layer 2 blockchain on Ethereum by Coinbase in August 2023. This development not only accentuates the growing credence in the Ethereum ecosystem but also extends the dissemination of decentralized applications to over 100 million Coinbase users. Concurrently, leading Layer 2 blockchains on Ethereum, namely Optimism and Arbitrum, have overstepped large Layer 1 blockchains like Solana in Total Value Locked (TVL), inching Ethereum closer to becoming the predominant Layer 1 blockchain if this trajectory persists.

The essence of Layer 2s emanates from the burgeoning need to augment Ethereum’s scalability. The analogy of a congested highway necessitating express lanes mirrors Ethereum’s scenario that propelled the genesis of Layer 2s. As transaction volumes swell, the network grapples with the scarcity of block space and surging gas fees, which peaked at an average of $196 per transaction by May 2022. This surge not only impinged on the user experience due to high costs and time inefficiency but also positioned Ethereum (~14 transactions per second) far behind competitors like Solana, capable of handling up to eight thousand transactions per second.

Layer 2 solutions ameliorate Ethereum’s inherent issues by processing transactions from decentralized applications, batching them, and transmitting a condensed version back to the main network for settlement. This mechanism drastically trims fees, up to 100x less than on the main chain, enhancing the usability and transaction capacity of the Ethereum ecosystem while buttressing its network security. Additionally, the incremental activity on Layer 2s reciprocates value to Ethereum with every transaction fee shared between the L2 and Ethereum network, alongside a minuscule burn of the total ETH supply, enriching the ETH value.

August witnessed a pivotal development with Coinbase launching its Layer 2 scaling solution, BASE, on Ethereum, extending the reach of dApps built on BASE Layer 2 to over 110 million users in the Coinbase ecosystem. BASE’s launch has already shown a notable upturn, surpassing Ethereum and other Layer 2 competitors in daily transactions within a month, and further propelled by the viral growth of decentralized application friend.tech. While presently centralized, BASE has expressed a progressive decentralization roadmap, aligning with the broader vision of Ethereum’s Layer 2 scalability agenda.

The previous months have seen a consistent rise in the usage of Layer 2 scaling solutions, with the aggregate daily active addresses on Layer 2 outpacing leading Layer 1s. The TVL metric also reflects a burgeoning trust in Layer 2s like Arbitrum and Optimism, which have surpassed Ethereum’s Layer 1 competitors Solana and Avalanche. The launch of the ARB token in March 2023 further entrenched Arbitrum as a leading Layer 2, boasting a TVL of $1.69 billion, only behind Tron and Ethereum.

While Layer 2s are pioneering in scaling Ethereum, they are at nascent stages of decentralization, posing certain risks. The predominant model involves a single entity running a “sequencer” for processing and batching transactions on Layer 2s, which could potentially lead to adverse outcomes such as outage risks. However, the progressive decentralization plans shared by most Layer 2s aim to mitigate such risks over time.

Despite the general consensus of a crypto market downturn since 2022, Ethereum’s ecosystem is burgeoning, courtesy of the Layer 2 solutions. The Layer 2 paradigm not only validates Ethereum’s model but also propels value to ETH, attracting more users and developers. With BASE, Coinbase is potentially paving the path towards mainstream adoption of Ethereum-based decentralized applications. The collective advancements in Layer 2s, despite the inherent centralization risks, are deemed to foster competition and innovation, positioning Ethereum to further cement its dominance in the smart contract blockchain realm.

Ethereum Layer 2s Surpass Prominent Layer 1s in Total Value Locked

Top-performing Ethereum Layer 2 solutions like Arbitrum, Optimism, and BASE have outpaced prominent Ethereum competitor Layer 1 blockchains such as Solana and Avalanche in terms of total value locked (TVL) as of September 25, 2023, according to Grayscale. This shift is pivotal as it demonstrates the growing significance of Layer 2 solutions in enhancing the scalability and transactional capacity of the Ethereum network.

Layer 1 refers to the base protocol layer of a blockchain network. It encompasses the fundamental rules governing the network, including consensus algorithms, transaction validation processes, and the creation of new blocks. Layer 1 solutions are integral to the operation of a blockchain and include established networks like Bitcoin, Ethereum, Solana, and Avalanche. However, as blockchain networks grow in popularity, scalability issues arise, often leading to slower transaction speeds and higher fees.

Layer 2 solutions are secondary protocols built atop Layer 1 blockchains, aiming to alleviate scalability issues by offloading transaction processing from the main chain. These solutions retain the security guarantees of the underlying Layer 1 blockchain while providing faster transactions and lower fees. Examples of Layer 2 solutions include Arbitrum, Optimism, and BASE, which operate on top of the Ethereum blockchain.

Layer 2 blockchains operate by processing transactions from decentralized applications (dApps) and subsequently “batching” them together. This batch of transactions is then sent back to the main network in a compressed form for final settlement. This mechanism serves as an auxiliary route or even a dedicated bus lane augmenting a major highway, thus optimizing the transaction process.

By functioning as outlined, Layer 2s enhance the overall usability and transaction potential of the Ethereum ecosystem while still leveraging the network’s fundamental security. As the Ethereum network scales further, a significant amount of activity can transition to the more cost-effective Layer 2 solutions. This transition, in turn, directs value back to Ethereum, further bolstering its position in the blockchain sphere.

Among the 31 active Ethereum Layer 2 projects listed by L2Beat, five projects namely Optimism, Arbitrum, BASE, Starknet, and zkSync are recognized for their standout performance in fundamental metrics. A chart released by Grayscale on September 27, 2023, sheds light on these top Layer 2s by TVL. It’s noteworthy that while Arbitrum and Optimism have launched a token, BASE, Starknet, and zkSync have yet to do so. The market caps column within the chart signifies the market cap for each respective token.

A recent report by Will Hamilogden delves deeper into the landscape of Layer 2s within the Ethereum ecosystem, providing a more extensive understanding of this burgeoning sector. The report is available on Grayscale’s website for individuals seeking a more comprehensive exploration of Layer 2s and their role in scaling Ethereum.

Source: L2BEAT 

The data from L2BEAT reveals that as of October 2, 2023, the sum of all funds locked on Ethereum converted to USD stands at $10.78 billion, marking a 4.64% growth over the past seven days. The TVL across various projects underscores the growing traction of Layer 2 solutions. For instance, Arbitrum One leads with a TVL of $6.03 billion, followed by OP Mainnet with $2.70 billion, and zkSync Era with $459 million.

The ascent of Layer 2s such as Arbitrum, Optimism, and BASE in terms of TVL is a testament to their value proposition in augmenting the Ethereum ecosystem. By surpassing notable Layer 1s like Solana and Avalanche, these Layer 2s have showcased their potential in fostering a more scalable and cost-effective environment for dApps, thereby contributing significantly to the advancement of the blockchain technology landscape.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

Coinbase's Base Bootcamp Launches to Address Onchain Developer Shortage

Base, Coinbase’s Ethereum layer-2 network, has announced the beginning of Base Bootcamp, an eight-week, cohort-based program with the goal of converting experienced software engineers into smart contract developers. Base Bootcamp will focus on teaching participants how to build smart contracts. The blockchain sector is facing a large talent deficit, with less than 30,000 onchain developers compared to almost 30 million conventional software professionals. This endeavor comes at a time when the blockchain industry is facing a substantial talent shortage.

According to the official release, the program is geared for “mid to senior level software engineering individual contributors.” For the purpose of providing individualized instruction and practical experience to each student, each class will have fewer than twenty members. The deadline for submitting applications to be a part of the subsequent batch is October 27.

Applicants who are selected to participate in the program will be provided with specialized mentoring, and they will meet on a weekly basis with their mentors. They will also get access to a gated Discord channel that will let them to communicate with the other members of their cohort, as well as the Coinbase engineers and program mentors.

The material taught at Base Bootcamp expands upon the Base Camp curriculum that was made accessible to the general public earlier this year. The students will work their way through this curriculum, and in addition, they will get supplemental materials and tasks that will be graded by the Base team. Participants will create a decentralized application (dapp) for the real world during the course’s last two weeks and then show it to the other members of their cohort.

It’s interesting to note that there are no costs associated with participating in the program. However, in order to participate in the scheme, individuals are asked to provide a one-ether deposit as a kind of assurance. After completion of the course, you will get this money back.

Because there is now a dearth of onchain developers, the introduction of Base Bootcamp is quite crucial. This project, according to Base, is not simply a learning adventure but a step toward becoming an important contributor to the new internet, highlighting the need for more developers to participate in the ecosystem of decentralization.

Exit mobile version