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Coinbase launches Layer2 Base, a new bridge connecting CeFi and Decentralized Finance.
Coinbase Launches New Layer2 Base: Crypto Exchange Moves Towards Web3
Coinbase announced the launch of a new Layer 2 network called Base, which is an optimistic rollup solution based on Optimism. As part of the Ethereum ecosystem, Base aims to provide a low-cost and high-speed on-chain experience for Coinbase's 110 million users.
Base will launch its mainnet within two months, initially operated by Coinbase as the sole sequencer. However, Coinbase has committed to gradually achieving decentralization and will upgrade Base to a non-training round Stage 2 rollup by the end of 2024.
As one of the core contributors to the OP Stack, Coinbase will work closely with Optimism to develop Base. This collaboration will accelerate the development of the OP Stack and lay the foundation for achieving atomic composability in the future.
For Coinbase, Base represents an important step for the company to expand into the Web3 space. It can provide existing users with richer on-chain services while also attracting new users into the encryption ecosystem. However, due to regulatory restrictions, it is unlikely that Base will issue tokens in the short term.
This move is a significant boon for the Optimism ecosystem. Coinbase's involvement validates the value of the OP Stack and will inject new momentum into its development. As more projects adopt the OP Stack, its network effects are expected to strengthen further.
Although the launch of Base is exciting, its success still faces many challenges. In addition to regulatory pressures, persuading users to transition from traditional finance to Web3 is also a significant challenge. Coinbase needs to provide a compelling value proposition to drive mass adoption.
Overall, the launch of Base reflects the ongoing trend of the encryption industry penetrating into the mainstream. As a bridge connecting CeFi and DeFi, it has the potential to bring Web3 experiences to a broader user base. However, its long-term impact remains to be seen.