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Coinbase Officially Launches Its Own Blockchain, Base

Coinbase Base Blockchain
By Nicolo Finazzi
Nicolo Finazzi

3 Min

August 11, 2023
  • Coinbase becomes first publicly listed company to launch its own blockchain network, Base.
  • Base introduces a new era of public companies managing their distributed networks for potential revenues.
  • Over $139 million deposits locked into apps and protocols on Base before public launch.

Coinbase, the leading cryptocurrency exchange in the US, has made history by launching its very own blockchain named Base. This significant move has set a new precedent, as Coinbase becomes the first publicly listed company to establish its own distributed network.

While Base had been available for testing by developers, Coinbase announced that it is now open to the public as of 12 p.m. ET on Wednesday. The initiative now enables public companies to delve into the realm of running their own distributed networks. This will allow them to create new revenue prospects and innovation.

The creation of Base aligns with Coinbase CEO Brian Armstrong's vision expressed in 2016, highlighting the fourth phase of the company's growth involving the development of "decentralized apps" aimed at reaching a global audience. With this launch, Coinbase is taking a major step towards this vision.

Moreover Jesse Pollak, Head of Protocols at Coinbase, mentioned that around 100 dapps are already operational on the Base network, demonstrating its real-world usability. Pollak emphasized the need to transition from crypto speculation to mainstream integration.

He stated: "In order for Coinbase and crypto and this work that we're doing to have the impact that we all want, we need to move from the place where this is speculation to a place where this is integrated into every part of someone's day-to-day existence."

To know more about these topics, read the following articles:

What is a layer 2 network?

The Base network operates as a layer 2 blockchain built on top of Ethereum, utilizing Optimism's OP Stack software.

As Coinbase itself explains, a layer-2 network operates on top of an underlying blockchain protocol (Ethereum). It processes transactions off of the Ethereum mainnet, which represents the Layer 1. This results in a number of benefits to developers and customers, which include:

  • Improved scalability and efficiency
  • Increased transaction speed
  • Reduced gas fees 
  • Consistent security measures and decentralization as the mainnet (layer 1) 

Even before its public launch, over $139 million in deposits have been locked into Base's apps and protocols. This showcases strong early adoption.

Additionally, the launch of Base is accompanied by "Onchain Summer". This is a promotional event in collaboration with corporate partners like Coca-Cola and Atari, aiming to showcase the capabilities of the new blockchain project.