Base Blockchain Development

Developed by Coinbase, one of the world’s leading cryptocurrency exchanges (CEX), Layer 2 Base uses Optimistic Rollups technology to improve the scalability of the Ethereum network.

This L2 network is built upon the framework of Optimism, the second-largest L2 ecosystem after Arbitrum. Base leverages the OP Stack, the set of software that powers the Optimism network, allowing it to benefit from the robust infrastructure and tools provided by the Optimism ecosystem.

Coinbase defines Base as an “ultra-fast, secure, and cost-effective” blockchain solution. The project aims to attract the next billion users to the Ethereum ecosystem by addressing the key challenges of the blockchain trilemma – scalability, security, and decentralization.

Based on this principle, the network compiles multiple off-chain transactions and then groups them into a single packet that it sends to the main chain. It then submits a summary of these transactions, including a cryptographic proof that validates the legitimacy of the off-chain transactions.

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.

Additionally, Base is built on Optimism’s OP Stack, an open-source model that allows anyone to build their own Layer 2 solution on Ethereum. Thanks to the modularity of the OP Stack, Base’s architecture is specifically designed to easily integrate with Coinbase’s products, including simple bridges between crypto and fiat currencies.

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. Since then, Base has quickly attracted a wide range of memecoins and traders, mainly due to its extremely low transaction fees.

The team behind the development of Base

The team specifically dedicated to the development of Base is not publicly known. However, it is important to note 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. He notably played a crucial role in accelerating the adoption of cryptocurrencies by advocating for a favorable regulatory environment for them in the United States.

Regarding his background, Armstrong studied computer science and economics at Rice University. During his studies, he interned at IBM before joining Deloitte & Touche where he worked in enterprise risk management.

Key elements of the Base ecosystem

As mentioned 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.

By building on the OP Stack, the Base network remains accessible to developers and the wider Ethereum community, fostering innovation and collaboration within the L2 ecosystem.

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, which strengthens the security and flexibility of the system;

Interoperability: Integrating the OP Stack into a rollup architecture greatly improves the network’s interoperability 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, the layer 2 Base benefits from several strategic advantages:

Improved scalability: OP Stack components enable Base to process a large volume of transactions efficiently, which is crucial to support Layer 2 growth;

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 OP Stack’s modular architecture encourages experimentation and innovation on the network.

In summary, the OP Stack is a fundamental element of the Base ecosystem, consolidating its position among the different rollups available on the market.

Coinbase plans to commit significant resources to the deployment and advancement of the Optimism superchain, which includes the Base L2 solution. Their commitment encompasses four key focus areas:

Stimulating Activity within the Superchain

Coinbase will work to increase the speed and efficiency of transactions and interactions within the superchain by optimizing protocols and reducing barriers to participation.

Bringing Value to the Superchain

Coinbase aims to enrich the superchain by introducing unique features and innovations that increase its intrinsic value, making it more attractive for users, investors, and developers.

Encouraging the Developer Ecosystem

Coinbase will create a supportive and stimulating environment for developers by providing tools, resources, and technical support. This will facilitate the development, experimentation, and deployment of new blockchain applications and solutions within the Optimism superchain.

Building an Interoperable Crypto-Economy

Coinbase’s efforts will focus on building an economic structure where different blockchains and crypto technologies can interact and work together seamlessly. Interoperability enables closer collaboration and easier integration between different platforms, fostering a more unified and robust crypto economy.
By committing resources and driving these key initiatives, Coinbase aims to strengthen the Optimism superchain, including the Base L2 solution, and contribute to the overall growth and adoption of the Ethereum ecosystem.

What are the tokenomics of the Base token?

Currently, Base has no plans to issue its own cryptocurrency and fees are settled in ETH.

However, looking at the functionality 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 the governance of Base, 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 earn rewards or privileges for contributing to this security;

Transaction Fees: Although Base transactions are currently settled in ETH, it is possible that in the future they may be paid in $BASE.

While there are currently no concrete plans for the release of such a token, the idea of ​​a distribution via an airdrop is very likely. This strategy could boost engagement and encourage the adoption of this layer 2 by the community.

How to buy BASE crypto?

As of today, 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.

Since transactions on Base are not very expensive, the investment required to potentially become eligible for an airdrop is not very large.

Overcoming Challenges and Unlocking the Potential of Base

While Base and the Optimism superchain hold great promise, they still face certain challenges, such as concerns regarding off-chain data management and the complexity of the technical implementation. Overcoming these obstacles will be crucial for the widespread adoption and successful integration of Base into the Ethereum ecosystem.

Nonetheless, the rapid growth and adoption of Crypto Base, combined with the innovative approach of the Optimism superchain, suggest that this L2 solution could play a significant role in ushering in a new era of more performant and efficient decentralized applications on the Ethereum network.