Coinbase New Blockchain 'Massively Boosts Ethereum
The newly launched Ethereum bull has high hopes to onboard a bunch of financial institutions and other crypto companies into Ethereum.
The new declaration of Coinbase’s New Blockchain layer-2 network, Base seems to have gotten Ethereum’s interest. Watershed moment and massive confidence votes are the best way to describe the Base. The blockchain network is the one for whom this type of narration has been done.
The base is aiming to become a kind of network that is for building decentralized applications (DApps) which are going to be used in the current blockchain technology. This network is not only secured on Ethereum but moreover, it is powered by a layer 2 network which is known to be Optimism.
Coinbase New Blockchain: Brian Armstrong And Layer-2
The CEO of Coinbase, whose name is Brian Armstrong, has announced that the layer 2 network is still in a test net phase.
In a Tweet on Twitter, he announces
‘ Hello, World. Meet Base, an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build a decentralized application. Our goal with Base is to take on the chain the next online and onboard 1B+ users into the crypto economy.’
Ryan Sean Adams is also a member of the crypto community and is popularly known as the host of the show called Bankless show. Adam openly believes that all of this is done as a massive vote of confidence against Ethereum.
This can set up a precedent for many or all cryptocurrency companies and even the financial institutions that are going to use Ethereum as the new settlement layer of their choice.
There are about 110 million verified users of Coinbase and they have even partnered up with 245,000 companies that are located in more than 100 countries. These partnerships have been occurring ever since the company was made in 2012.
The cryptocurrency exchange of Coinbase is known to be the second largest and the biggest that too in terms of trading volume, behind Binance.
“If Coinbase converts 20% of its 110m verified users to Layer 2 users in the coming years, this alone will 10x the total number of crypto native users,” Adams added.
Adams furthermore commented that Coinbase is opting for an open-source Base and that this new layer-2 network is going to bring even more block space than is demanded on Ethereum.
Is The New Layer-2 Decision Beneficial?
For the time being, Sebastien Guillemot who is the co-founder of Blockchain infrastructure firm dcSpark, has concluded that Coinbase has made a clever decision to go with this new Layer 2 as it is an independent sidechain.
He has also expressed the noting that all of these cryptocurrency values and transactions are locked on Ethereum which resides on the new layer 2s.
The co-founder Ryan Watkins of crypto-focused hedge fund Syncracy Capital. He has described this news in his tweet as a watershed moment that has occurred in the Ethereum rollup ecosystem. In addition, he added that there was no one likely enough to be better positioned than Coinbase that is to onboard the new institutions and the next 10 million users on Ethereum.