Optimism is the foundation of Base, and Coinbase does not intend to issue a new network token
Base, a layer 2 network built with Optimism’s OP Stack, was launched by Cryptocurrency Exchange Coinbase (COIN) to attract millions of new crypto users in the coming years. Coinbase launched the Base testnet on Thursday.
The company announced that Coinbase will join Optimism as a core developer on the open-source OP Stack, an Optimism network developer toolkit. Base, on the other hand, will not just support Ethereum; it will also make it simple and secure to access layer 2 networks like Optimism and other blockchain ecosystems like Solana.
Will Robinson, vice president of engineering at Coinbase, “Today, we’re excited to announce the test net launch of Base, an Ethereum layer 2 (L2) network offering a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “dapps” on-chain.” Robinson went on to say, “We’re incubating Base inside of Coinbase, leveraging the last ten years of our experience building crypto products, and plan to gradually decentralize the chain over time.”
There will not be a new network token issued by Coinbase.
Testnets are simulation environments for the use of blockchain in the real world. Layer 2 refers to distinct blockchains built on top of layer 1 or base blockchains, which reduce scaling and data bottlenecks and are typically significantly faster and less expensive.
The Coinbase ecosystem’s estimated 110 million verified users and $80 billion in assets would be targeted by Coinbase’s direct integration of developers’ products with Base and the provision of fiat onramps.
We encourage them to begin on the base, but they can go anywhere: Robinson stated, “We see Base as a “bridge” for users into the crypto economy.” It’s a default on-chain experience that’s simple to use and gives you access to products on other chains.
In the meantime, Coinbase also made the Base Ecosystem Fund official. This fund will support and invest in early-stage projects that use Base and meet predetermined investment criteria.