Base is a layer 2 on Ethereum developed by Coinbase, one of the world's leading cryptocurrency exchanges. The project is built with Optimism's OP Stack, an all-in-one solution designed for developing rollups on Ethereum. Currently, no token is planned, but many rumors suggest that an airdrop could happen soon.
What is Base?
Powered by Coinbaseone of the world leaders in cryptocurrency exchanges (CEX), Layer 2 Base uses Optimistic Rollups technology to improve the scalability of the Ethereum network.
On this principle, the network compiles several off-chain transactions, then groups them into a single packet which it sends to the main chain. It then submits a summary of these transactions, including cryptographic proof that validates the legitimacy of transactions made off-chain.
Base provides full compatibility with the Ethereum Virtual Machine (EVM) and standard Ethereum tools, such as Solidity and Truffle, allowing developers to easily deploy decentralized applications (dApps) on Base.
In addition, Base is based on Optimism's OP Stack, an open-source model that offers the possibility for anyone to develop their own Layer 2 solution on Ethereum. Thanks to the modularity of the OP Stack, Base architecture is specifically designed to easily integrate Coinbase productsnotably offering simple gateways between cryptos and fiat currencies.
Coinbase: register on the most famous crypto exchange in the world
This connection with Coinbase also helps attract a wide range of users and significant transaction volume within the ecosystem.
The network was launched in August 2023, through the month-long On Chain Summer event. From, Base quickly attracted a wide range of memecoins and tradersmainly due to its extremely low transaction fees.
At the time of writing this article, Base posts a total value locked (TVL) of $2 billion, significantly surpassing that of Optimismwhich currently has a TVL of $1.1 billion.
The key elements of the Base ecosystem
Architecture based on the OP Stack
As stated earlier, Base is built on the OP Stack, a development framework designed in collaboration with Optimism. This framework offers an interesting modular architecture to easily develop and manage rollups on Ethereum.
Here are some elements and features of the OP Stack:
- Modularity : The OP Stack is designed to be highly modular, allowing developers to choose or replace components according to their specific needs;
- Security and decentralization : By relying on open-source principles, the OP Stack aims to maintain a high level of security while promoting greater decentralization. Each layer of the stack can be adjusted or improved independently, increasing the security and flexibility of the system;
- Interoperability : The integration of the OP Stack into the architecture of a rollup greatly improves the interoperability of the network with other Ethereum blockchains and applications;
- Ease of development : The OP Stack is designed to simplify the dApp development process by providing turnkey tools. This allows developers to focus on innovation and value creation rather than managing technical complexity.
Why does Base use the OP Stack?
By integrating the OP Stack, layer 2 Base benefits from several strategic advantages :
- Improved scalability : The components of the OP Stack allow Base to process a large volume of transactions efficiently, which is crucial to support the growth of layer 2;
- Cost reduction : The efficiency provided by the OP Stack makes it possible to significantly reduce transaction costs on Base, thus making this layer 2 more attractive for users and developers;
- Continuous innovation : The modular architecture of the OP Stack encourages experimentation and innovation on the network.
In summary, the OP Stack is a fundamental part of the Base ecosystem, consolidating its position among the different rollups available on the market.
The user experience on Base
A crucial aspect of Base is its commitment to improving user experience (UX) by reducing the complexity traditionally associated with blockchains. Here are some key innovations that help simplify this interaction.
Integrations between Coinbase and Base
Transactions on Base are made easier thanks to the integration of Coinbase services. This synergy allows users to buy and sell crypto directly through the Coinbase interface, significantly simplifying the process for users.
Account Abstraction
Base natively supports Account Abstraction (ERC-4337), allowing developers to create applications with various advanced features. This includes transactions without gas fees, programmable wallets and even simplified management of private keys.
The Smart Wallet, Coinbase's intelligent wallet
Drawing on Account Abstraction, Coinbase launched its Smart Wallet on June 5, 2024, optimized for Base. This wallet improves the user experience by enabling gas-free transactions and removing the need to store a recovery phrase. This innovation considerably improves the user experience and also promotes the adoption of layer 2 by the general public.
In conclusion, Base aims to make blockchain more accessible and less complex for users and developers.
What are the roles and Tokenomics of the Base token?
Currently, Base has no plans to issue its own cryptocurrency and fees are paid in ETH.
However, by observing the functionalities of other layer 2 tokens, we can imagine the roles of a potential $BASE token:
- Governance : A $BASE token would allow its holders to participate in Base governance, including the right to vote on proposed network improvements, protocol updates and other strategic decisions;
- Network Security : The token could be used to improve network security through staking. Holders of the $BASE token could then obtain rewards or privileges for contributing to this security;
- Transaction fees : Although transactions on Base are currently settled in ETH, it is possible that in the future they may be paid in $BASE.
Although there are currently no concrete plans for the release of such a token, the idea of distribution via an airdrop is very likely. This strategy could stimulate engagement and encourage the adoption of this layer 2 by the community.
Base logo, styled by Cryptoast
Nowadays, layer 2 Base does not yet have its own native cryptocurrency. The Base teams assure that a BASE token is not on the agenda, but it is a communication strategy often used by protocols and layer 2s. It is therefore possible that in the near future, a BASE token will indeed be launched.
As transactions on Base are not very expensive, the investment required to potentially become eligible for an airdrop is not very significant.
Do you want to know what to do to best farm the possible airdrop of a BASE token? Join the Cryptoast Research community and benefit from comprehensive guides on airdrop farming.
Cryptoast Research: complete guides to farming airdrops
The team behind the development of Base
The team specifically dedicated to Base development is not publicly known. However, it is important to emphasize that the project is led by Coinbase, a major player in the cryptocurrency sector.
Coinbase was founded in 2012 by Brian Armstrong, one of the most influential figures in the Web3 industry. In particular, he played a crucial role in accelerating the adoption of cryptos by advocating for a regulatory environment favorable to them in the United States.
Regarding his background, Armstrong studied computer science and economics at Rice University. During his studies, he completed an internship at IBM before joining Deloitte & Touche where he worked in enterprise risk management.
Our opinion on layer 2 Base
Layer 2 Base presents interesting potential, notably thanks to Coinbase's large user base and commitment to improving user experience and accessibility.
However, a major challenge for Base will be to gradually free itself from the control of Coinbase to completely decentralize and strengthen its credibility within the blockchain community.
Coinbase: register on the most famous crypto exchange in the world
There is also uncertainty surrounding the potential introduction of a $BASE token to promote decentralization and governance of the platform. The distribution of a token via an airdrop could play a significant role in the adoption of layer 2.
Finally, in the longer term,he basic technological choice in favor of Optimistic Rollups also deserves consideration. Indeed, although Optimistic Rollups are mature and operational technologies, Vitalik Buterin, the creator of Ethereum, recently expressed a preference for ZK Rollups, which he considers more promising due to their technical advantages.
Thus, it will be interesting to see how Base will evolve in the face of these technological challenges and in the face of other competitors such as Starknet, Scroll, Linea or even zkSync.
👉 Discover more than 100 summary sheets on cryptocurrencies
What is your opinion on Base?
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no harm to you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to cryptoassets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
I immersed myself in the world of blockchain in 2016, following a captivating discussion with a friend about Bitcoin. My journey since then has been guided by a constant quest for technical innovation and the development of revolutionary solutions that redefine our interaction with technology.
Ambroise Lalloz
17 items
