1 year ago
The Ethereum assemblage appears to person taken a bullish presumption of Coinbase’s newly announced layer-2 network, Base, which has been described arsenic a “massive assurance vote” and a “watershed moment” for the blockchain network.
Secured connected Ethereum and powered by layer-2 web Optimism, Base aims to yet go a web for gathering decentralized applications (DApps) connected the blockchain. The layer-2 web is presently successful its testnet phase, according to Coinbase CEO Brian Armstrong.
0/ Hello world.
Meet Base, an Ethereum L2 that offers a secure, low-cost, developer-friendly mode for anyone, anywhere, to physique decentralized apps.
Our extremity with Base is to marque onchain the adjacent online and onboard 1B+ users into the cryptoeconomy.https://t.co/Znuu3o3pJw
Members of the crypto community, specified arsenic Ryan Sean Adams, big of the Bankless Show, judge the determination “is a monolithic ballot of assurance for Ethereum” which could acceptable a precedent for cryptocurrency companies and fiscal institutions to usage Ethereum arsenic the colony layer of choice.
2/ This sets precedent that different crypto companies volition follow, past Fintechs, past banks. Eventually the satellite volition usage Ethereum arsenic a colony and spot rights system.
— RYAN SΞAN ADAMS - rsa.eth (@RyanSAdams) February 23, 2023Coinbase has astir 110 cardinal verified users and has partnered with 245,000 companies successful implicit 100 countries since it was founded successful 2012. Its cryptocurrency speech is the 2nd largest successful presumption of trading measurement down Binance, according to CoinGecko.
“If Coinbase converts 20% of its 110m verified users to Layer 2 users successful the coming years, this unsocial volition 10x the full fig of crypto autochthonal users,” Adams added.
Adam besides commended Coinbase for opting to open-source Base and believes the caller layer-2 web volition bring astir adjacent much artifact abstraction request connected Ethereum.
Coinbase conscionable announced that they are launching a furniture 2, named Base, connected Ethereum and powered by Optimism.
Ethereum is becoming the world's colony layer.
Meanwhile, Sebastien Guillemot, co-founder of blockchain infrastructure steadfast dcSpark, suggested that Coinbase made a omniscient determination to spell with a furniture 2 arsenic opposed to an autarkic sidechain, noting that “almost all” cryptocurrency transactions and worth locked connected Ethereum resides connected furniture 2s these days.
Coinbase announced Base, a caller L2 (based connected the Optimism L2)
L2s proceed to predominate the industry
- Almost each txs successful crypto are connected L2s
- Almost each TVL successful crypto are connected L2s
- More devs moving connected L2s than fundamentally each L1
Sidechains (which aren't L2s) are a discarded of time
Ryan Watkins, the co-founder of crypto-focused hedge money Syncracy Capital described the quality arsenic a “watershed moment” successful the Ethereum rollup ecosystem, successful a Feb. 23 Twitter post before opining that determination was "likely nary 1 better" positioned than Coinbase to onboard the adjacent 10 cardinal users and institutions to Ethereum.
Not everyone was bullish though.
Gabriel Shapiro, wide counsel of concern steadfast Delphi Labs explained successful a Feb. 23 Twitter station that launching a centralized layer-2 web “opens the door” to unwanted SEC scrutiny.
Related: Coinbase beats Q4 net estimates amid falling transaction measurement
“A centralized L2 that trades tons of tokens immoderate fig of which could beryllium alleged securities, oregon does tons of DeFi transactions that arguably mightiness alleged to beryllium regulated (securities swaps etc), opens the doorway to the SEC making caller kinds of secondary marketplace claims,” explained Shapiro, adding:
“imo, this volition accelerate the SEC's "secondary market" docket re: blockchain securities issues, due to the fact that they can't fto an SEC registrant "get distant with" imaginable violations & physique up a ineligible arbitrage strategy close nether the SEC's nose.”Shapiro's concerns travel arsenic the SEC has precocious upped its enforcement efforts against respective stablecoin issuers and staking work providers of late.
In regards to the motorboat of Base, the lawyer opined that could beryllium a “bad measurement for them” and could inflict “collateral damage” connected the remainder of the ecosystem, peculiarly successful the lawsuit that the SEC finds a vulnerability to expose:
overall, if so Coinbase's motives are regulatory successful nature, it's not lone a atrocious measurement for them, but could endanger unsafe collateral harm to the remainder of the ecosystem
if their motives are regulatory, they should've waited till each the infra tin beryllium truly decentralized
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