In brief

  • Base is a Layer 2 Ethereum solution developed by cryptocurrency exchange Coinbase, in partnership with Optimism to provide a secure, cost-effective and developer-friendly environment for building applications on chain.

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

  • Base has diverse use cases including payment applications, token swaps, liquidity provision, token bridges, and DAO launches.

What is base?

Base is a Layer 2 (L2) blockchain on Ethereum officially released on August 9, 2023 by the US-based cryptocurrency exchange Coinbase. Base has attracted attention in the cryptocurrency community because it is the first blockchain launched by a publicly traded company.

Base is developed in partnership with the Ethereum L2 Optimism blockchain on the OP Stack, an open source and standardized development kit supported by Optimism. Base enables developers to build 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 something called a Superchain supported by the Optimism community of developers. Base has publicly announced that they currently have no plans to release a new token network for Base, so users should be extremely cautious of scammers offering fake Base tokens.

Layer 2 - What is Layer 2?

Layer 2 Blockchain is the term used to describe secondary protocols or frameworks built on top of existing blockchains (Layer 1) such as Ethereum. The primary purpose of Layer 2 solutions is to improve the scalability, transaction throughput, and underlying efficiency of a Layer 1 blockchain without compromising its security or decentralization.

There are several types of Layer 2 blockchain technology, including state channels (Bitcoin's Lightning Network and Ethereum's Raiden network), sidechains (Bitcoin's Liquid Network and Ethereum's Loom network), and rollups (Optimistic rollup and ZK-rollup ).

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 scalability, transaction throughput, and reduce associated fees. Optimism leverages a technology called Optimistic Rollup, in which multiple off-chain transactions are aggregated into a single on-chain data representation and sent to the main Ethereum chain.

Optimism uses an anti-fraud system that assumes that all initial rollup transactions are valid. Users can challenge these transactions and submit evidence of potential fraud within a certain time frame. If any fraudulent activity is detected during this period, the malicious user will be penalized and the transaction will be canceled.

What are the use cases of Base?

Like other L2 networks, Base can be used in many scenarios. Below are some applications that have been built on Base.

1. Payment application

Beam is a payments app that allows users to make transactions using stablecoin USDC or the app's native token, Eco. Users can log in with their Twitter account and pay gas fees through USDC or Eco. In addition, Beam also integrates a fiat-to-crypto and crypto-to-fiat conversion portal.

2. Token swap

The token swap feature on decentralized exchanges (DEX) allows users on Base to trade a variety of cryptocurrencies. Currently, there are several decentralized exchanges running on Base, such as Uniswap, Maverick, and Dackieswap.

3. Provide liquidity

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

4. Bridge

Base has developed an official bridge called Base Bridge that is compatible with the majority of Ethereum wallets, such as MetaMask or Coinbase Wallet. Users  can connect ERC-20 tokens between Base and Ethereum.

Connecting from Ethereum to Base usually takes a few minutes, while connecting from Base to Ethereum takes about 7 days.

5. Launch of DAO

A Decentralized Autonomous Organization (DAO) is a blockchain-based organization characterized by community decisions and operated through smart contracts. Aragon, a DAO creation protocol, has introduced a codeless DApp on the Base network, simplifying the DAO creation process.

Will there be a BASE token?

According to Base's roadmap and their official twitter bio status, Base has no plans to release a token network in the future.

However, many projects initially claim to have no airdrop plans but may carry out an unannounced airdrop in the future. This is often done to reward early supporters for contributing to the network and nurturing the community.

How to connect to Base Network and use this Testnet?

Connecting to Base Network is quite simple and can be done using Coinbase wallet or any EVM compatible wallet.

1. Connect to Base using Coinbase wallet

To use Base with Coinbase Wallet, follow these next steps:

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

2. Connect to the app using Coinbase Wallet (in this example, we will use BaseSwap).

3. Access the network select menu by clicking the network icon located in the top right corner.

4. Select Base from the list.

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

2. Connect Base using MetaMask

Users can connect to Base using multiple EVM wallets. Let's see how to connect the Base network to the MetaMask wallet as an example.

1. Launch the MetaMask browser extension.

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

3. Select the add network button.

4. Manually select additional networks.

5. In the “manually add network” dialog box, enter the following details for the Base Goerli testnet and click save:

6. You can now connect to Base Network in the network selection dropdown.

What are the benefits of Base Network?

Key benefits of using Base Network include:

1. Low cost

Like other optimistic rollups, Base has low gas fees, designed to significantly reduce transaction costs and improve transaction throughput. It achieves this by processing off-chain transactions and merging them into a single proof.

2. Accessibility

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

3. Scalability

L2 scalability brings significant advantages such as enhancing the capacity and transaction throughput of blockchain networks. This innovation addresses bottlenecks and reduces inefficiencies, ultimately providing faster and more cost-effective solutions for users and developers.

What are the disadvantages of Base Network?

The main limitations and concerns associated with Base include:

1. Centralization

One of the main concerns surrounding Base is concentration. Coinbase operates as the sole sequencing node on Base, giving them significant control over transactions. A sequencer node is a specialized node in the blockchain network responsible for sequencing and completing transactions in a specific order, improving transaction throughput.

Having a sequencer node concentrates transaction processing and placement power in a single entity. Additionally, this centralized authority has the ability to set and modify fees related to Coinbase Sequencer. Coinbase has hinted at the possibility of integrating third-party nodes in the future.

2. Long withdrawal time

One of the main limitations of the Base blockchain is the long withdrawal time, which takes about 7 days. This delay is due to the design of Optimism's anti-fraud system, which allows users to challenge transactions and submit evidence of potential fraud within this specified time frame.

Long withdrawal times can lead to a suboptimal user experience.

3. Security

As an L2 built on the OP Stack, Base faces a series of security risks. The first concern is the effective use of anti-fraud mechanisms as a security measure. Fraud proof relies on the vigilance of network participants to monitor and challenge any invalid off-chain transactions before they are completed on the main blockchain.

However, this mechanism faces various challenges, including incentive issues rewarding participants and vulnerability to data obfuscation attacks.

summary

Base has attracted significant interest since its launch. It has reached a total of over one million users and has a total value locked (TVL) of over 385 million USD, as of September 7, 2023. This incredible achievement has made Base the 8th ranked chain in terms of TVL, surpassing popular blockchains like Cardano and Solana.

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

Read more:

  • Compare Layer 1 and Layer 2 Blockchain Scaling Solutions

  • What is Polygon (MATIC)?

  • Rollup Optimistic and Zero-Knowledge: What's the Difference?

TuyĂȘn bố miễn trừ trĂĄch nhiệm vĂ  CáșŁnh bĂĄo rủi ro: Nội dung nĂ y Ä‘Æ°á»Łc trĂŹnh bĂ y cho báșĄn trĂȘn cÆĄ sở "nguyĂȘn tráșĄng" chỉ nháș±m mỄc đích thĂŽng tin chung vĂ  giĂĄo dỄc, khĂŽng cĂł báș„t kỳ hĂŹnh thức đáșĄi diện hay báșŁo đáșŁm nĂ o. TĂ i liệu nĂ y khĂŽng nĂȘn Ä‘Æ°á»Łc hiểu lĂ  tÆ° váș„n tĂ i chĂ­nh, phĂĄp lĂœ hoáș·c chuyĂȘn nghiệp khĂĄc, cĆ©ng nhÆ° khĂŽng nháș±m khuyáșżn nghị mua báș„t kỳ sáșŁn pháș©m hoáș·c dịch vỄ cỄ thể nĂ o. BáșĄn nĂȘn tĂŹm kiáșżm lời khuyĂȘn của riĂȘng báșĄn từ cĂĄc cố váș„n chuyĂȘn nghiệp thĂ­ch hợp. Trong trường hợp bĂ i viáșżt Ä‘Æ°á»Łc đóng gĂłp bởi cộng tĂĄc viĂȘn bĂȘn thứ ba, xin lÆ°u Ăœ ráș±ng những quan điểm thể hiện đó thuộc về cộng tĂĄc viĂȘn bĂȘn thứ ba vĂ  khĂŽng nháș„t thiáșżt pháșŁn ĂĄnh quan điểm của Binance Academy. Vui lĂČng đọc tuyĂȘn bố miễn trừ trĂĄch nhiệm đáș§y đủ của chĂșng tĂŽi táșĄi đñy để biáșżt thĂȘm chi tiáșżt. GiĂĄ tĂ i sáșŁn ká»č thuáș­t số cĂł thể biáșżn động. GiĂĄ trị khoáșŁn đáș§u tÆ° của báșĄn cĂł thể tăng hoáș·c giáșŁm vĂ  báșĄn cĂł thể khĂŽng láș„y láșĄi Ä‘Æ°á»Łc số tiền đã đáș§u tÆ°. BáșĄn hoĂ n toĂ n chịu trĂĄch nhiệm về cĂĄc quyáșżt định đáș§u tÆ° của mĂŹnh vĂ  Binance Academy khĂŽng chịu trĂĄch nhiệm phĂĄp lĂœ cho báș„t kỳ tổn tháș„t nĂ o mĂ  báșĄn cĂł thể pháșŁi gĂĄnh chịu. TĂ i liệu nĂ y khĂŽng nĂȘn Ä‘Æ°á»Łc hiểu lĂ  tÆ° váș„n tĂ i chĂ­nh, phĂĄp lĂœ hoáș·c chuyĂȘn nghiệp khĂĄc. Để biáșżt thĂȘm thĂŽng tin, hĂŁy xem Điều khoáșŁn sá»­ dỄng vĂ  CáșŁnh bĂĄo rủi ro của chĂșng tĂŽi.