Watershed Moment: ETH Community at Ease as Coinbase Brings in L2 Network ‘Base’

• Coinbase has announced the launch of its own Ethereum Layer 2 solution, Base, which is planned to fully decentralize within two years. 
• Coinbase also indicated its intention to integrate other Ethereum Layer 1 networks such as Solana or Avalanche into the network. 

Coinbase Launches Layer-2 Protocol Base, But It’s Not Without Criticism

Coinbase, a cryptocurrency exchange platform, has recently introduced a new blockchain protocol called Base. The protocol is designed to help Coinbase expand its business by promising developers access to over 110 million Coinbase customers.

However, the launch of Base’s testnet on Thursday was not smooth, as users quickly began to report problems with the network’s functionality. Users expressed frustration over issues such as slow transaction processing times, high gas fees, and other technical difficulties.

Despite the initial problems, Coinbase has defended the launch of Base, stating that it is still in the early stages of development and that they are working to address the issues that have been raised.

The launch of Base is seen as a significant display of trust and support towards Ethereum (ETH). This move could potentially encourage other cryptocurrency firms and financial institutions to adopt Ethereum as their preferred settlement layer.

A layer 2 blockchain, such as Base, is designed to improve the scalability and efficiency of the Ethereum network by processing transactions off-chain and then settling them on the main chain. While this technology has the potential to reduce congestion and improve transaction speeds, it can also introduce new challenges and issues that need to be addressed.

Overall, the debut of Coinbase’s new Base protocol highlights the challenges of implementing new blockchain technologies and the importance of addressing user concerns and feedback in the development process.

Optimism’s Token Price Soars on News of Coinbase Partnership

In addition to the launch of Base, Coinbase also announced that the layer-2 network will be powered by Optimism. This news caused the price of Optimism’s native token, OP, to soar by 16% on the day, according to data from CoinGecko.

Optimism is a scaling solution built on the Ethereum network that aims to improve its scalability and reduce congestion by processing transactions off-chain and then settling them on the main chain. The announcement of Base and Coinbase’s partnership with the DAO for open-source development on the OP stack has increased market confidence in Optimism and its potential for improving the Ethereum network. This has resulted in a surge in demand for OP tokens, causing their price to increase significantly.

Compared to other major cryptocurrencies, which have been relatively stagnant over the last 24 hours with none rising by more than 1%, the performance of OP tokens has been exceptional.

However, it’s worth noting that cryptocurrency markets are highly volatile, and price fluctuations can occur rapidly and unexpectedly. As with any investment, it’s important to conduct thorough research and understand the risks involved before making any decisions.