Coinbase Layer 2 Network

blockchain.news:

The Ethereum community appears to have a bullish view of Coinbase's newly announced layer-2 network, Base, which has been described as a «massive confidence vote» and a «watershed moment» for the blockchain network. This has been described as a «massive confidence vote» and a «watershed moment» for the blockchain network.

Protected by Ethereum and driven by Optimism's layer-2 network, Base's long-term objective is to evolve into a network that facilitates the development of decentralized applications (DApps) for use on blockchains. According to the chief executive officer of Coinbase, Brian Armstrong, the layer-2 network is now in the testnet phase.

Members of the cryptocurrency community such as Ryan Sean Adams, host of the Bankless Show, are of the opinion that the move «is a massive vote of confidence for Ethereum.» If this is proven to be the case, it could set a precedent for cryptocurrency companies and financial institutions to use Ethereum as their preferred settlement layer.

Since its founding in 2012, Coinbase has amassed roughly 110 million verified users and has worked with 245,000 businesses across more than 100 countries. According to CoinGecko, its cryptocurrency exchange is the second biggest in the world in terms of trading volume. The first place goes to Binance.

«This alone will 10x the overall number of crypto native users,» Adams said, adding that «if Coinbase converts 20% of its 110 million verified users to Layer 2 users in the future years,» this alone will 10x the entire number of verified users.

Adam also praised Coinbase for its decision to open-source Base, and he is of the opinion that the newly introduced layer-2 network would result in an increased demand for block space on