What is BASE, Coinbase’s Layer 2 Network?

·

Summary


What is Base?

Base is an Ethereum L2 blockchain launched on August 9, 2023, by Coinbase. It’s notable as the first blockchain introduced by a publicly traded company. Built on OP Stack (Optimism’s open-source framework), Base grants developers access to Coinbase’s ecosystem of 110M verified users and $80B+ in assets.

Key Vision:


What is Layer 2?

A Layer 2 (L2) blockchain enhances scalability and reduces fees of its Layer 1 (L1) counterpart (e.g., Ethereum) without compromising security.

Types of L2 Solutions:

  1. State Channels (e.g., Lightning Network).
  2. Sidechains (e.g., Polygon).
  3. Rollups (Optimistic, ZK-Rollups).

Popular L2 Networks: Optimism, Polygon, Arbitrum, zkSync.


What is Optimism?

Optimism is an L2 using optimistic rollups:


Use Cases for Base

1. Payment Apps

2. Token Swaps

3. Liquidity Provisioning

4. Bridging

5. DAO Launches


Will There Be a BASE Token?

Coinbase confirms no plans for a native token. However, future airdrops (unannounced) could reward early adopters.


How to Connect to Base

Via Coinbase Wallet:

  1. Open the browser extension.
  2. Connect to a Base app (e.g., BaseSwap).
  3. Select Base from the network dropdown.

Via MetaMask:

  1. Add Base manually:

    • Network Name: Base
    • RPC URL: [Provided by Base]
    • Chain ID: 8453
  2. Save and switch networks.

Benefits of Base

Low Cost: Optimistic rollups reduce gas fees.
Accessibility: EVM compatibility simplifies development.
Scalability: Processes 2,000+ TPS vs. Ethereum’s ~15 TPS.


Drawbacks of Base

⚠️ Centralization: Coinbase is the sole sequencer node.
⚠️ Slow Withdrawals: 7-day delay for Base → Ethereum transfers.
⚠️ Security Risks: Relies on fraud-proof mechanisms vulnerable to data withholding attacks.


Conclusion

By September 2023, Base hit 1M+ users and $385M TVL, surpassing Cardano and Solana in value locked. As the first L2 from a public company, Base bridges traditional finance and Web3, though users must weigh its trade-offs.

👉 Explore Base’s official bridge


FAQ

Q1: Is Base a sidechain?
A1: No—it’s an L2 rollup secured by Ethereum.

Q2: Can I stake tokens on Base?
A2: No native staking, but you can provide liquidity on DEXs.

Q3: How is Base different from Arbitrum?
A3: Both use optimistic rollups, but Base integrates directly with Coinbase’s ecosystem.

Q4: Are Base transactions instant?
A4: Near-instant for Base-native txns, but withdrawals to Ethereum take ~7 days.

👉 Learn more about Optimistic Rollups