In August 2023, Coinbase's L2 blockchain Base quickly became a focal point due to the unexpected rise of the meme coin BALD. The token's name humorously pays tribute to Coinbase CEO Brian Armstrong's bald head. However, according to Jesse Pollak, one of Base's core advocates, Base's goals extend far beyond memes and aim to create a profound global impact.
The BALD phenomenon: An unexpected meme wave.
"The rise of BALD took us by surprise," Pollak said at the Devcon conference in Bangkok. He recalled the experience of the meme coin rapidly gaining popularity before Base's public launch, "That was a Saturday morning when I woke up thinking, what the hell is going on? This was completely unplanned, but it just happened."
BALD has become a microcosm of unpredictability in the crypto world. For Pollak, this unexpected craze is a lesson in adaptability, transforming chaos into an opportunity for innovation. Although BALD eventually crashed, this incident highlights the decentralized and inherently unpredictable nature of the blockchain ecosystem.
Base is the new meme haven beyond Solana.
According to statistics from CoinMarketCap, high market cap tokens in the Base ecosystem are primarily meme coins like BRETT, VIRTUAL, MOG, etc., indicating the memeification of the Base ecosystem. In particular, the interest from Coinbase's investment institution a16z in AI agents has driven the popularity of AI agent meme coins on Base.
(EP.204 The Birth of New Applications for Memes and AI Agents feat. Daily Coin Research Alvin)
What else can Base do besides meme coins?
Pollak has greater expectations for Base. In recent weeks, he has been traveling frequently, meeting with developers in Africa and Asia, and attending events like Devcon. His focus is on building a robust platform that provides secure financial solutions for emerging markets such as Southeast Asia, Kenya, and India. Pollak stated that people in these regions are seeking stable economic options, and stablecoins are filling this gap.
The growth of Base is evident. On-chain data shows that Base is approaching Solana in terms of stablecoin issuance. According to DeFiLlama data, Base has over $3.5 billion in stablecoin market cap, ranking sixth globally.
Refuting Base's centralization issues.
Despite Base's rapid development, its close relationship with Coinbase has sparked some criticisms of centralization. The controversy peaked when Coinbase delisted Wrapped Bitcoin (wBTC) and promoted the Base-driven alternative cbBTC. Critics mockingly dubbed this new token as "central bank Bitcoin."
Pollak refuted these accusations and illustrated Base's openness by citing the prevalence of meme coins. "The meme coin craze indicates that Base is not fully premeditated, controlled, or centralized." He emphasized that the platform allows organic and unrestricted activities.
Decentralization is at the core of Base.
As a Layer 2 solution on Ethereum, Base's design philosophy is decentralized. Pollak emphasized Base's reliance on open-source technology: "Anyone can replicate this code, verify its functionality, and challenge its operation."
Recent innovations, such as the introduction of fault proofs, further strengthen decentralization. These proofs allow active addresses on Base to verify and challenge transactions, reducing reliance on centralized entities. Pollak even stated that Base's existence could outlive Coinbase: "Even if Coinbase disappears tomorrow, Base will continue to operate."
What are Fault proofs?
Fault proofs are a mechanism in blockchain technology designed to enhance the level of decentralization and security of Layer-2 (L2) scaling solutions. In L2 systems, fault proofs allow any participant to declare the on-chain state and challenge possible errors or fraudulent behavior. This mechanism ensures that even without complete decentralization, the system can still remain honest and secure.
Base has not issued a native token, attracting attention for its fundraising capabilities.
Base's journey has only just begun. From a meme coin-driven start to its current focus on global financial inclusion, this protocol demonstrates the ability to adapt and grow. With a commitment to decentralization and a vision of empowering underserved markets, Base is carving out a unique position in the blockchain space. Base has so far upheld its commitment to support the Ethereum mainnet and has not issued a native token in any form, but this continues to fuel community speculation about further actions.
This article Coinbase's Base Blockchain: The Unexpected Meme Coin Craze, Founder's Goal Dedicated to Financial Inclusion first appeared in Chain News ABMedia.