Résumé

  • Base is an Ethereum Layer 2 solution developed by crypto exchange Coinbase, in partnership with Optimism to provide a secure, affordable, and developer-friendly environment for building applications on the blockchain.

  • Base is compatible with all EVM wallets and the Coinbase wallet.

  • Base has various use cases, including payment applications, token swaps, liquidity provision, token transfer, and DAO launch.

What is Base?

Base is an Ethereum layer 2 (L2) blockchain officially launched on August 9, 2023, by crypto exchange Coinbase, headquartered in the United States. Base has attracted the attention of the crypto community because it is the first Blockchain launched by a publicly traded company.

Base was developed in partnership with Optimism (an Ethereum layer 2 blockchain) on OP Stack, a standardized, open-source development stack that powers Optimism. Base allows developers to create decentralized applications (DApps) with access to Coinbase's ecosystem of 110 million verified users and over $80 billion in assets.

Base’s vision is to create a “superchain” powered by Optimism and supported by a community of developers. Base has publicly announced that it currently has no plans to issue a new token for the network. Users should therefore be extremely careful with scammers offering Base tokens.

What is Layer 2?

A layer 2 blockchain is secondary protocol or structures built on top of an already existing blockchain network (layer 1) such as Ethereum. The primary goal of Layer 2 solutions is to improve the scalability, transaction throughput, and efficiency of the underlying blockchain, without compromising its security or decentralization.

There are several types of layer 2 blockchain technologies, including public channels (Lightning network for Bitcoin and Raiden network for Ethereum), parallel blockchains (Liquid network for Bitcoin and Loom network for Ethereum), and rollups (optimistic and ZK rollups -rollups).

Some of the most widely used layer 2 blockchain networks include Optimism, Polygon, zkSync, and Arbitrum.

What is Optimism?

Optimism is a layer 2 blockchain solution built on the Ethereum network, aiming to improve its scalability and transaction throughput, while reducing associated fees. Optimism leverages a technology called Optimistic Rollups, in which multiple transactions off the blockchain are aggregated into a single data representation on the blockchain, before being submitted to the main Ethereum blockchain.

Optimism uses a fraud-proof system, which assumes that all aggregated transactions in the rollup are initially valid. Users can dispute these transactions and submit evidence of potential fraud within a specified time period. If fraudulent activity is detected during this period, the malicious user is penalized and the transaction is canceled.

What are the use cases for Base?

Like other Layer 2 networks, Base can be used for a wide range of use cases. Here are some applications that have been built on Base.

1. Payment apps

Beam is a payment app that allows users to transact using either the stablecoin USDC or Eco, the app's native token. The user can log in using their Twitter account (renamed X) and cover gas costs in USDC or Eco. Additionally, Beam includes a fiat to crypto and crypto to fiat currency conversion gateway.

2. Swaps de tokens 

Token swapping on decentralized exchanges (DEX) allows Base users to trade various cryptocurrencies. Currently, several decentralized exchanges operate on Base, such as Uniswap, Maverick and Dackieswap.

3. Adding Liquidity

Users can add liquidity to the Base blockchain through various DApps such as Uniswap, BaseSwap and Dackieswap. These DApps allow liquidity providers to earn fees from transactions made in a liquidity pool.

4. Passerelle (Bridging)

Base has developed an official gateway known as Base Bridge. This is compatible with the majority of Ethereum wallets, such as MetaMask or the Coinbase wallet. Users are able to transfer ERC-20 tokens between Base and Ethereum.

Transferring from Ethereum to Base usually takes a few minutes, while transferring from Base to Ethereum takes around seven days.

5. Launch of DAO

A decentralized autonomous organization (DAO) is a blockchain-based organization. This is characterized by decisions driven by the community and managed through smart contracts. Aragon, a DAO creation protocol, introduced a no-code DApp to the Base network, simplifying the DAO creation process.

Will there be a BASE token?

Base's roadmap and official bio on Twitter (renamed X) indicate that they have no plans to issue a token in the near future.

However, projects may initially claim to have no plans for an airdrop and carry out one later. This is usually done to reward early supporters who contribute to the network and promote the birth of a community.

How do I connect to the Base network and use the testnet?

Connecting to the Base network is quite simple and can be done with the Coinbase wallet, or an EVM compatible wallet.

1. Log in to Base with Coinbase Wallet

To use Base with Coinbase Wallet, follow these steps:

1. Launch the Coinbase Wallet browser extension and log in to your account.

2. Log in to an app using the Coinbase wallet (in this example we will use BaseSwap).

3. Access the network selection menu by clicking on the network symbol located in the upper right corner.

4. Choose Base from the list.

5. The active network will now be set to Base.

2. Connect to Base with MetaMask

Users can connect to Base with many EVM wallets. Let's see together how to connect to the Base network with the MetaMask wallet.

1. Launch the MetaMask browser extension.

2. Access the network selection drop-down menu by clicking the drop-down button at the top of the extension.

3. Select the “Add Network” button.

4. Select “Add network manually”.

5. In the “Add Network Manually” dialog box, enter the following details for the Base Goerli testnet and click “Save”:

6. You should now be able to connect to the Base network.

What are the benefits of the Base network?

The main benefits of using the Base network are:

1. Low cost

Like other optimistic rollups, Base offers very low gas fees. The network is in fact designed to considerably reduce transaction costs and improve their throughput. It achieves this by processing transactions off the blockchain and consolidating them into a single proof.

2. Accessibility

EVM-enabled blockchains, like Base, improve accessibility by allowing developers to easily deploy and use existing Ethereum-based tools, frameworks, and smart contracts across multiple platforms.

3. Scalability

Layer 2 scalability provides significant benefits by improving network capacity and transaction throughput. This improvement addresses bottlenecks and reduces inefficiencies, providing faster, more cost-effective solutions for users and developers.

What are the disadvantages of the Base network?

The main limitations and concerns associated with Base are:

1. Centralisation 

One of the main concerns with Base is the degree of centralization. Coinbase functions as the only sequencer node on Base, giving them considerable control over transactions. A sequencer node is a specialized node in a blockchain network responsible for sequencing and finalizing transactions in a specific order. This process helps improve transaction throughput.

Having a single sequencer node concentrates the power of transaction processing and ordering into a single entity. Additionally, this centralized authority can (if it wishes) set and modify the fees associated with the Coinbase sequencer. Coinbase has hinted at the potential integration of third-party nodes in the future.

2. Long Withdrawal Periods

One of the main limitations of the Base blockchain is the slow pace of withdrawals, taking around seven days. This delay is attributed to Optimism's fraud-proof system design, which allows the user to dispute transactions and submit evidence of potential fraud during this time.

Slow withdrawals can lead to a negative user experience.

3. Security

As a Layer 2 built on top of the OP stack, Base faces a set of security risks. The first concern relates to the effectiveness of fraud protection mechanisms as a security measure. Proof of fraud relies on the vigilance of network participants to monitor and challenge any invalid transactions off the blockchain, before they are finalized on the main blockchain.

However, this mechanism faces various challenges, including issues with incentivizing rewards for participants and vulnerability to data retention attacks.

Conclusion

Base has generated a lot of interest since its launch. As of September 7, the network has reached a total of over 1 million users and over $385 million in total value blocked (TVL). This feat places Base as the eighth largest blockchain in terms of TVL , surpassing popular blockchains such as Cardano and Solana.

As the first Blockchain launched by a publicly traded company, Base opens up new possibilities to attract a wider audience and bring more users into the world of Web3. As the platform continues to grow and evolve, it is essential for users and developers to evaluate and make informed decisions when interacting with the Base network.

More information

  • Layer 1 vs. Layer 1 Blockchain Scalability Solutions layer 2

  • What is Polygon (MATIC)?

  • Optimistic rollups and zero knowledge rollups: What is the difference?



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