Second largest Coinbase Crypto exchanges by trading volume are jumping into the blockchain world in a move that some market players are excited about.
On Thursday, the exchange launched Base, an Ethereum-focused Layer 2 (L2) blockchain, to enter the decentralized ecosystem through its own chain and further expand into the developer space. Jesse Pollak, lead and head of the protocol, said: Coinbase previously told TechCrunch.
Base’s L2 is a “secure, low-cost, developer-friendly” chain that aims to help builders create dApps on the chain, the company said. A number of crypto businesses, platforms, marketplaces and infrastructure companies are working to build on Base, a Coinbase spokesperson told TechCrunch.
Companies expected to be involved include Blockdaemon, Chainlink, Etherscan, QuickNode, Aave, Animoca Brands, Dune, Nansen, Magic Eden, Pyth, Rainbow Wallet, Ribbon Finance, The Graph, Wormhole and Gelato.
Dmitry Shklovsky, co-founder of Base partner and node provider QuickNode, said: “More on-ramp and a fairer, developer-friendly L2 are important health indicators that we are on the right track.”
L2 blockchains are built on top of Layer 1 (L1) blockchains such as Ethereum, Solana, and Avalanche to mitigate the effects of bottlenecks, constraints, and other network clogs. Instead of putting all transactions on the L1 chain, L2 bundles the transactions so that tasks can be distributed in a more efficient manner.
L1, like Ethereum, is secure but impractical for high-throughput volumes due to large amounts of gas, transactions and fees being prohibitive, spokespersons for The Graph Foundation and Edge & Node told TechCrunch. said in an email. “L2 makes the blockchain space more accessible to both a wider range of developers and users, leveraging the security of L1 like Ethereum, while enabling cheaper and faster transactions.”
Shklovsky said L2 is essential for accessibility and scalability within the space. “L1 usually prioritizes security and decentralization over scalability. L2 reduces the workload on the main chain, makes the network faster and easier to use, and scales the chain quickly without compromising decentralization or security. make it possible.”
Expanding L2 space
Base is built on the MIT-licensed OP stack in collaboration with Layer 2 blockchain Optimism, which also focuses on the Ethereum blockchain. “Optimism is not a competitor [to Base]rather a collaborator, ”said Shklovsky.
The Optimism stack is open source, on which much of the web3 space relies, said spokespeople for The Graph and Edge & Node. “This demonstrates the spirit of active union and collaboration of the web3, in contrast to the competitive environment that has become the norm for the web2. Everyone can benefit from not having to reinvent the wheel from
