Extensive cryptocurrency exchange Coinbase has announced the launch of Base, its new layer-2 community and platform for building decentralized applications (DApps) on the blockchain.
The community is powered by optimism and secured by Ethereum, which has been described as a “significant vote of confidence” in the Ethereum community.
Help from Coinbase for Ether
Ryan Sean Adams, a founder of Mythos Capital & author of the popular DeFi e-newsletter, Bankless, has praised Coinbase’s decision to choose ETH over launching its L2 community. Adams believes that this move sets a precedent for other cryptocurrency companies, fintech, & eventually, banks to use Ethereum as a settlement & property rights system.
The Benefits of a Decentralized Method
One advantage of using a maximally decentralized method to launch a sequence is that it does not require a token or a walled garden, making it more open-source and in keeping with the DeFi movement’s values.
Coinbase may alone 10x the overall number of crypto native customers by converting 20% of its 110 million verified customers to Layer 2 customers in the coming years, which may significantly impact the broader crypto business.
The DeFi Potential
The bottom line demonstrates Ethereum’s power and DeFi’s potential to transform the financial system by providing a more open, transparent, and trustless alternative to traditional finance.
