How Coinbase’s BASE Chain Could Change the Game
Explain Sequencer| Cathie Wood | Scaling | Dapp | BASE Stand | Revolutionary
Coinbase is the largest and most popular exchange in the United States. It has $60 billion worth of assets and 110 million crypto users.
Tendermint
Coinbase has introduced the L2 Ethereum chain. Ethereum’s Optimistic Rollup stack is a development kit similar to Cosmos. Several blockchains based on Cosmos’ Tendermint (SDK) will be seen in the market. Numerous projects, like Luna and Binance, have started their chains using the Cosmos development kit.
Buzz
Similarly, Coinbase is launching L2 Chain Optimistic Rollup, which is causing quite a buzz on social media. Nevertheless, no new token will be released based on this new chain, as formally declared by the Coinbase team. Currently, there is no intention to do so, although it may happen in the future. You may wonder which token will be used to pay the gas fee. For this, only ETH will be utilized.
As the Arbitrum chain does not have a token, Ethereum is used to pay the fees for any activities performed on it.
COIN + BASE
‘BASE’ is the name of Coinbase’s chain. The decision to keep the name ‘BASE’ was chosen for a reason. Coinbase is listed on the stock exchange with the ticker ‘COIN.’ The first four letters of Coinbase were already used, leaving just ‘base;’ hence, the chain was given the name ‘BASE.’ Because Coinbase’s stock is publicly traded, the company may not issue additional coins (tokens) on the cryptocurrency market.
They might not have launched the token because they do not want to be exposed to the US SEC’s investigation. No one wants to make things worse for themselves.
BASE Work
This L2 chain acts as a sequencer. Let me explain how the sequencer works and what it means. Every Ethereum user creates a chain for other users, which is how layer 2 of the Ethereum network functions.
Transactions are said to be completed on these chains; after confirming all transactions on the Ethereum chain, they form a batch and complete the final settlement on the Ethereum chain’s main layer.
A sequencer is used throughout this procedure to transmit all transactions to the main layer. The chain launched by Coinbase has a similar concept.
Optimism
Because Coinbase has collaborated with Optimism Chain, Optimism will get a portion of the revenue made throughout all of these transactions and activities. The OP token of Optimism increased by 16% at the time of the introduction of this ‘BASE’ chain. The VELO token of Optimism Chain’s DEX Velodrome Finance increased by 45%, while Sonne Finance’s token increased by 85%.
Optimism’s DEX has nothing to do with Coinbase. Coinbase utilized Optimism’s development kit, which increased the hype around Optimism DEX.
Aim
The ‘BASE’ chain has been adopted and will be used by many popular currencies. We will now be able to use the ‘BASE’ chain in all big projects. ‘BASE’ like Optimism and Arbitrum, is a layer 2 chain that aims to scale Ethereum.
Cathie Wood purchased shares in Coin worth $3.9 million as a result of Coinbase’s latest development. The value of Coinbase’s stock will increase in the near future.
Top Development
Despite hearing about Optimism and Arbitrum from all sides, their names do not appear in the top 10 blockchain developmental projects. Polkadot is still number one in the top 10, while Kusama is number 2. Following that are ADA, ICP, MANA, ETH, ATOM, SNT, VEGA, and FIL.
Several new ways to make money will be available as a result of ‘BASE.’ On this chain, developers will create many Dapps, as well as NFTs.
Upcoming
The creation of the BASE main chain will be followed by the development of liquid stocking Dapps, the DEX, yield-related features, a bridge, and a landing protocol. All service-related projects will be addressed by these tokens.
As a result, the opportunities for projects built on the big Crypto project may be limited.
Early Projects
When new projects are added to the BASE, they will launch Airdrops and NFTs, giving us the opportunity to earn large sums of money. As a result, we should keep a watch on the BASE protocol; whatever the first 6–7 projects are, they will get more attention because of their branding and early user base.
Coinbase’s financial resources may enable them to make significant investments in the development and promotion of the BASE. From this new chain BASE, we might be able to make some money and it might give us a return of 100x.
♦ I hope you have learned a lot about BASE Chain ♦
Clap — Share — Comment — Happily ☺
Disclaimer
This is not a Financial Advice. This article is meant only for educational purpose. I am just sharing my thoughts and analysis based on my many years of experience.