In order to draw in more cryptocurrency users in the coming years, Coinbase, a well-known crypto exchange company, is believed to have established a layer 2 network called “Base.” The layer 2 network was reportedly built utilizing Optimism’s OP Stack. According to reports, Coinbase launched the testnet for the aforementioned layer 2 network yesterday.
In which the respective company has stated that they are working as a core developer with Optimism on the open-source OP Stack, a developer toolkit for the Optimism network. According to several reports, Base will not be limited to Ethereum alone. In which the aforementioned layer 2 network is expected to provide easy and secure access to layer 2 networks such as Optimism, as well as other blockchain ecosystems such as Solana.
The Base’s Objectives
Will Robinson, Coinbase’s vice president of engineering, stated in an interview that the company was thrilled to announce the test net launch of Base, a layer 2 network that aims to provide “a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “Dapps” on-chain.”
He also added that Base is being incubated within Coinbase itself. It is claimed that this would make use of the users’ prior knowledge of creating crypto products. According to Robinson, this innovation also attempts to gradually decentralize the network over time.
Yet, it has already been made clear that the relevant platform Coinbase has no plans to introduce or issue a new network token.
Testnets for Layer 2 networks
Testnets are a type of testing environment used to simulate the use of blockchain technology in the real world. The term Layer 2 is typically used to describe a different blockchain that is created on top of layer 1’s, or the base. These are usually referred to as blockchains that eliminate scale and data bottlenecks. They are also renowned for being less expensive and speedier.
Coinbase would be able to provide developers direct access to their products through Base while simultaneously giving them access to fiat onramps. This supposedly targets the approximately $80 billion in assets on the network in the Coinbase ecosystem, as well as more than a hundred million verified users.
Robinson claimed that while allowing developers the option to go wherever they are encouraging them to start on Base. He has also emphasized his desire for Base to act as a “Bridge” for users to use in the crypto-economy.
Robinson continued by saying that Base is a user-friendly, built-in on-chain experience that gives users access to goods on other chains. Coinbase has also revealed the Base Ecosystem Fund, which will finance and assist early-stage Base-based startups that satisfy preset investment requirements.