Coinbase Launches Its Own Ethereum Layer 2 Solution
Popular cryptocurrency exchange Coinbase stated on February 23 that it had built a base L2 network utilizing Optimism's OP Stack.
The main goal of this initiative is to attract millions of new cryptocurrency users over the following several years. As a core developer for the open-source OP Stack, a developer toolkit created for the Optimism network, Coinbase has announced that it will collaborate with Optimism.
But, the crypto exchange's participation in the initiative won't be limited to Ethereum alone. Users will be able to easily and securely access L2 networks like Optimist and other blockchain ecosystems like Solana according to the company's ambitions.
According to Will Robinson, vice president of engineering at Coinbase, Base, an Ethereum Layer 2 (L2) network, is now launching its testnet. The Base network provides users all over the world with a safe, affordable, and developer-friendly platform to build decentralized applications, or “dapps,” on-chain. The network will gradually become decentralized as part of the goal.
It has been made clear by Coinbase that it has no plans to develop a new network token. To ensure a seamless launch, Coinbase started the Basic testnet. Transactions will become quicker and more affordable thanks to the network's assistance in reducing scale and data constraints.
Will Robinson, VP of Engineering at the exchange stated:
“Base is viewed as a pathway for users to enter the crypto economy and serves as a user-friendly onchain platform with the added benefit of access to products on various other chains.”
The cryptocurrency exchange wants to provide fiat onramps and let developers directly integrate their products with Base. It aims to steal assets worth $80 billion from the crypto exchange ecosystem and its estimated 110 million verified users.
The token OP for the Optimism protocol experienced a little price increase following Coinbase's announcement and was trading at $2.92 at the time of publication. The amount denotes an increase in price of around 20% during the last 24 hours.
