Coinbase Announces The Launch Of Base Tokens

Coinbase will launch Base tokens. (Photo; Doc. Cryptonews)

JAKARTA - The US-leading crypto trading company Coinbase announced the launch of an Ethereum layer two (L2) scaling network called Base. Testnet from Base launched on Thursday, February 23, and Coinbase plans to develop and incubate the network to increase the scale of the crypto economy. Base will be open-source and will take advantage of Optimism's OP Stack.

Coinbase joins other Ethereum L2 scaling projects, such as Polygon, Arbitrum, Optimism, Loopring, Starknet, and others. Coinbase hopes that Base can help turn onchain into the next one and onboard 1 billion users into the crypto economy. Base offers full EVM equality at a lower cost and is committed to encouraging developer platforms.

Base development is carried out jointly with OP Labs and Optimism Collective. Although initially Coinbase will have more control, Base's vision is to be completely unlicensed over time.

Bases will expand from rollup Phase 0 to Phase 1 in 2023 and rollup Phase 2 in 2024. In addition, Coinbase insists that they do not plan to issue new network tokens.

Additional information, rollup is a second-scale technology (Layer 2) for blockchain networks, especially for Ethereum. Rollup aims to increase blockchain transaction capacity and reduce expensive transaction fees.

As an L2 platform, Base offers a lower cost than the cost of transacting onchain with Ethereum. This is in line with the main goal of scaling L2, namely increasing blockchain transaction capacity and reducing transaction fees.

Although current Ethereum costs are higher than usual, the L2 Arbitrum protocol offering lower costs has exceeded the daily number of Ethereum transactions.

Coinbase also announced the launch of Base Ecosystem Funds to support early-stage projects in collaboration with Bases, as long as they meet company investment criteria.

Base launch has triggered a 7.4% increase in the original token value of Optimism's L2 scaling network, OP. Optimism recently announced its plans to upgrade its network in March.