Coinbase Announces Launch of Layer-2 Ethereum-based Network

• A testnet for Base has been operational since the beginning of the month.
• Coinbase is the first publicly listed business to establish a layer-2 blockchain network.

Earlier today, Coinbase announced the release of Base, it’s very own layer-2 network built on Ethereum. According to the business, millions of new decentralized applications will be able to make use of Base. Since it will serve as an open ecosystem for Coinbase’s on-chain products.

Moreover, according to Jesse Pollak, Coinbase’s director of engineering, a testnet for Base has been operational since the beginning of the month, even though it was just revealed publicly today.

Pollak stated:

“This is a bet that we can help enable the next million dapps, which are going to bring in the next billion users. We think that’s going to happen on a five- to 10-year horizon and this is our contribution to making that happen sooner rather than later. Our goal is to launch mainnet in the next few months.”

Transactions Quicker and Cheaper

Coinbase is the first publicly listed business to establish a layer-2 blockchain network on top of Ethereum. And has been trading on Nasdaq under the COIN ticker since April 2021. After reaching a high of $67.17 after the company’s Q4 earnings beat, COIN closed the day down 1% at $61.18 per share on Wednesday.

By processing batches of transactions on a secondary chain and then delivering receipts back to the mainnet, Layer-2 networks assist make transactions quicker and cheaper than an underlying blockchain, in this instance Ethereum. Coinbase said in a blog post published Wednesday that Base would be “a rollup agnostic superchain powered by Optimism.” 

Oracle network Chainlink, Ethereum block explorer Etherscan, and the DeFi protocol Aave are just a few of the numerous partners that have pledged to develop into and support the ecosystem that Base is launching.

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