• Coinbase has launched a layer-2 Ethereum-based network called Base, which is the first publicly listed business to establish such a network.
• This will help enable the next million decentralized applications and bring in the next billion users.
• Base is powered by Optimism and has several partners such as Chainlink, Etherscan, and Aave that have pledged to develop and support this ecosystem.
Coinbase Launches Layer-2 Ethereum Network
Coinbase has announced the launch of their layer-2 Ethereum-based network called Base. This is the first ever publicly listed business to establish such a network on top of Ethereum, trading under the COIN ticker since April 2021. With Base, millions of new decentralized applications can be enabled quickly and cheaply than on an underlying blockchain like Ethereum.
Testnet for Base Operational Since Beginning of Month
Base has been operating with a testnet since the beginning of this month according to Jesse Pollak, Coinbase’s director of engineering. He believes that this will help enable the next million dapps and bring in another billion users within 5 to 10 years time. The goal is to launch mainnet in just a few months from now.
Transaction Quicker & Cheaper with Layer-2 Networks
Layer-2 networks assist make transactions quicker and cheaper than an underlying blockchain like Ethereum by processing batches of transactions on a secondary chain then delivering receipts back to mainnet. Coinbase stated in their blog post that Base would be “a rollup agnostic superchain powered by Optimism.” A few partners who have pledged their support for this ecosystem include Oracle network Chainlink, Ethereum block explorer Etherscan, and DeFi protocol Aave amongst others.
COIN Stock Price After Q4 Earnings Beat
COIN stock closed at $61.18 per share on Wednesday after reaching a high of $67.17 after Coinbase’s Q4 earnings beat earlier today. It was down 1% from its previous closing price due to some investors taking profits from their investment in Coinbase’s stock after seeing it rise so quickly over the past few weeks.
With its layer- 2 based network now operational on top of Ethereum’s blockchain technology, Coinbase hopes that this will provide easier access for developers looking into building decentralized applications as well as enabling more users within 5 – 10 years time period making use of these dapps built upon its platform