Ethereum (ETH) is a vital part of the blockchain ecosystem. As the de facto home to a wide range of decentralized applications (dApps) and smart contracts, it has enabled the decentralized finance (DeFi), non-fungible token (NFT), and blockchain gaming spaces to flourish into what they are today.
Despite its importance, Ethereum has its issues, particularly with regard to transaction speed, transaction cost, and scalability.
Layer 2 blockchains have become important in solving these problems for Ethereum. By processing transactions outside of the main Ethereum blockchain – while still leveraging its security – Layer 2 blockchains aim to speed up transactions, reduce costs, and facilitate high transaction throughput.
One of the fastest growing Layer 2 solutions is BaseBuilt using the OP stack developed by Optimism, Base seeks to solve Ethereum’s problems and more, making Ethereum a truly future-proof blockchain. Here’s our complete guide to the Base blockchain.
Source: CoinbaseWhat is Base?
Base is a Layer 2 blockchain developed by the team behind Coinbase, a leading centralized cryptocurrency exchange.
It was designed with ease of use as its top priority, and unlike many other blockchain projects, Base does not have a native token. Instead, it uses Ethereum’s native token (ETH) for gas fees, reinforcing Base’s core purpose and helping to avoid potential risks, misalignments, and fake token scams associated with token offerings.
Base is designed to be decentralized, permissionless, and open to all. By leveraging Optimism’s OP stack, Base guarantees near-zero gas fees, fast transactions, and strong security, on top of everything Ethereum provides.
Some of the larger projects currently supporting Base include OpenSea, Uniswap, and Galxe.
In recent months, Base has become a leading option for Web3 game developers, securing partnerships with several upcoming blockchain titles including Pixelmon, Planet Mojo, and Atari’s arcade classic re-releases.
How the base works
Base works as an optimistic rollup, a technology that processes off-chain transactions in batches, significantly reducing costs and network stress.
Transactions take place on Base and are pooled together to be finalized on the Ethereum mainnet. This ensures that Ethereum’s security and decentralization benefits are maintained.
Optimistic rollups, like Base, assume that transactions are valid by default, meaning they do not require significant computation up front, which helps reduce costs. However, the system includes an anti-fraud mechanism that checks for suspicious transactions, ensuring network security.
Fully funded by Coinbase, Base was designed to focus on technological advancement rather than profit generation. Strategic partnerships and the high quality of projects featured in its ecosystem prove this, showing that it is dedicated to new ideas.
Source: AtariThe history of the base
Base’s journey began in early 2023 when Coinbase announced it would be building its own Ethereum Layer-2 blockchain.
The Base testnet was launched shortly after, helping developers build dApps for Base. The Base mainnet officially went live in August 2023.
Thanks to its close ties to Coinbase, Base has gained popularity over the past 12 months. One of the first Base products to gain widespread adoption was the Coinbase Learn-to-Earn program, an online platform that rewards users for learning about blockchain technology.
Several major projects, marketplaces, and tools have migrated to or started supporting Base, taking advantage of its low fees, high transaction speeds, and strong financial backing.
Over the past few months, the Base team has been making a concerted effort to attract top blockchain games to its chain. In addition to migrating Pixelmon, Planet Mojo, and Atari to Base, NPC Labs, a startup founded by three former Coinbase employees, has raised $21 million to accelerate the development of Web3 games on Base.
With its unique, tokenless approach, Base represents a significant step forward in Layer 2 solutions that help solve the inherent challenges of the Ethereum blockchain. Its entry into the Web3 game marks an exciting new chapter for the industry – and with blockchain gaming experiencing a renaissance in recent times, it will be interesting to see how Base stacks up against competitors like Immutable, Polygon, and Ronin.
