Five key points about Coinbase L2 Base: No Token, OP Stack, Onboard 100m users

Feb 24, 2023

Author: GaryMa

According to the official description, Base is a secure, low-cost, developer-friendly Ethereum L2 built to bring the next billion users to web3.This article summarizes five major points related to it for the convenience of readers.

1. No Token，a portion of gas fees flow to OP Collective

At present, the official has made it clear that Base will not issue coins and will use ETH as gas; in addition, part of the Base transaction fee (probably 20%) will flow into OP Collective in the future, further promoting the development of OP Stack.

2. Coinbase, Base ecosystem, Ecosystem Fund

The goal of Base is to make onchain the next online and onboard one billion users into the cryptoeconomy. In pursuit of this goal, Base will serve as both a home for Coinbase’s onchain products and an open ecosystem where anyone can build. This is a very attractive proposition for developers, with Coinbase’s 100+ million potential users and hundreds of billions of dollars in assets. Coinbase has also announced the first batch of Base partners, including nearly 50 projects we already know, such as Chainlink, QuikNode, Axelar, LayerZero, Gelato, Ribbon Finance, and many more. In addition, the official Base Eco Fund has been announced, which will invest in early stage projects built on Base that meet the requirements.

3. Why Op Stack?

Since the second half of 2022, Coinbase and OP Labs have been working together on EIP4844, a proto-dank sharding that can effectively reduce L2 network fees by 10~100x , and both sides share the same philosophy and vision of expanding Ether. Later, Coinbase\Base also joined the research team of OP Stack and said that part of Base transaction fees (probably 20%) will flow into OP Collective in the future to continue to promote the development of OP Stack.

4. How base views decentralization?

For now Coinbase will be the only sequencer on the Base L2 network, but eventually it will have to move towards permissionless sequencers set. The decentralization property has always been sought by OP Stack, and the current unique sequencer is only a temporary trade-off, as Base and OP Labs move forward with decentralization in a collaborative manner.

5. Account Abstraction, smart contract wallets

The official documentation for Base mentions that it will have features like Account Abstraction (ERC4337) and smart contract wallets. Gnosis Safe has tweeted that it will work with Base to implement account abstraction for mass adoption by users.

After understanding the above points, the most important thing we need to sort out is what is the special significance of such an additional L2 network Base incubated by Coinbase:

● Combined with Coinbase Wallet, account abstract & smart contract wallet and other technologies, Coinbase’s current user Base is expected to be transferred to Base, greatly reducing the threshold for users to enter the understanding and promoting the large-scale adoption of Web3. Bearing in mind that Coinbase currently has a verified user base of 100 million+ and nearly $100 billion in assets, Base has also stated that it is positioning itself as a “bridge” for users to enter the cryptoeconomy.

● Coinbase’s user group is already verified, and the diversion past Base will be associated with mission accounts, similar to Binance’s previous soul-bound token BAB, whether we can expect to derive more ways to play with on-chain assets, such as RAW, DID etc.

● As a pioneer of OP Stack, it is expected to drive the Rollup application chain narrative and erode the Cosmos application chain narrative.

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