Base, a new and innovative blockchain developed by the Coinbase team, a global leader in cryptocurrency exchanges (CEXs), is gaining popularity. This project stands out among other blockchains, offering significant benefits for both developers and end users.
A New Quality Created by a Giant
Base was created in 2023 by Coinbase, one of the largest and most trusted CEXs in the world. The company is listed on Nasdaq with the $COIN ticker, making it one of the first major cryptocurrency platforms to debut on a traditional U.S. stock exchange. Coinbase was founded in 2012 by billionaires Brian Armstrong and Fred Ehrsam.
Coinbase is known for introducing digital finance innovations. Thanks to their extensive experience, they created a blockchain platform that surpasses existing solutions in performance and versatility. The support of such a giant provides Base with solid foundations and a wide user base of 11 million verified users. This increases its development potential for the future.
What is the Base Blockchain?
Base is a layer 2 solution for Ethereum, built in collaboration with Optimism. Unlike some blockchains, Base does not have its own native token and leverages the existing Ethereum ecosystem. As of today, the total value locked (TVL) on the Base platform is approximately $1.8 billion.
Base blockchain has several key advantages over more well-known blockchains. We can highlight two main benefits that set this platform apart:
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Scalability and Performance: Base stands out with high scalability and low transaction costs. For example, the Ethereum blockchain often struggles with high gas fees, especially during periods of heavy network load. In contrast, Base offers significantly lower network operation costs, making it more attractive for decentralized applications (dApps).
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Interoperability: Base offers advanced interoperability with other blockchains. This means that applications and services operating on Base can easily integrate with other blockchain ecosystems, such as Polkadot or Cosmos. This feature allows for seamless data and resource exchange between different platforms, which is limited to less versatile networks.
These features make Base an exceptionally attractive platform for developers and users seeking more efficient and economical solutions.
Security is a key element of Base, which utilizes advanced cryptographic techniques. Regarding the consensus mechanism, Base relies on Optimistic Rollup technology, which processes transactions off-chain and submits proofs to the main Ethereum chain.
The Optimistic Rollup method does not rely on staking processes and validators selection typical of Proof of Stake (PoS) systems. Additionally, it involves a centralized node called a "sequencer" operated by Coinbase, responsible for sequencing and finalizing transactions.
As a layer 2 network, Base offers various applications, such as payment apps, token exchanges, and liquidity provision. An example is Beam, an application integrated with Base that enables transactions using USDC and the Eco token, login via X, and fiat-to-crypto exchange.
Users can also trade cryptocurrencies on decentralized exchanges like Uniswap and Dackieswap via Base and provide liquidity on platforms like BaseSwap.
Additionally, the company offers Base Bridge, which is compatible with most Ethereum wallets, such as MetaMask, allowing for seamless transfer of ERC-20 tokens between the Base network and the main Ethereum chain.
Attractiveness of Base in the Coming Months
Since Base is one of the newest blockchain solutions, it automatically draws speculators attention. Any new trend, token, or strong platform attracts investors seeking a fresh wave before a potential market rise, as forecast by analysts.
Base's undeniable advantage is its strong development team, which regularly optimizes the code. This allows Base to maintain low transaction costs, attracting both developers and end users. Consequently, operations on Base can be more profitable than on other networks.
Base already supports decentralized finance (DeFi) and non-fungible tokens (NFTs). As these sectors grow in the coming years, Base has the potential to become a key platform for new innovative projects. With strong ties to various ecosystems, Base will be able to offer more comprehensive and integrated solutions.
Popular Tokens on Base
Investors may be particularly interested in newly introduced tokens on Base, which have the potential to increase in value thanks to the platform's growing popularity. Base already hosts popular tokens that attract investors and users. Examples include:
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Aerodrome Finance (AERO): A modern Automated Market Maker (AMM) for Base, combining liquidity incentives, NFT-based voting, and a user-friendly interface, utilizing Velodrome V2 features.
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Brett (BRETT): A meme coin that gained popularity due to its humorous concept and active community. BRETT is mainly used for speculation and community interaction. Other popular coins on Base include USDC, DAI, and Wormhole.
Summary
Base, built by Coinbase, is a modern blockchain platform that stands out from the competition due to its scalability, security, and interoperability. With low transaction costs, support for DeFi and NFTs, and strong partnerships, Base has the potential to become a leading blockchain platform in 2024-25. Popular tokens such as USDC, DAI, and AERO already benefit from Base's opportunities, confirming its growing role in the cryptocurrency ecosystem. Base is an attractive solution for developers and users due to its low transaction costs and high scalability, made possible by its integration with Ethereum and Optimism technology.