Want to know why Base has established itself in a short time as one of the most popular blockchains for both developers and users? This platform, created by Coinbase, has features and functionalities that make it unique.
In this article, we will see what Base is, from its origin to its main virtues, which will give us a better picture of why it has grown almost exponentially since its creation.
Base Blockchain: What is It and How Does it Relate to Coinbase?
Base is a blockchain developed by Coinbase, one of the largest cryptocurrency exchanges in the world.
Base is what is called a “layer 2 solution” for Ethereum. Layer 2 (L2) blockchains are built on top of a core network (in this case Ethereum’s) and solves some of its problems such as congestion and high fees, but inherits features such as cybersecurity and infrastructure. Base functions as an alternative pathway to the mainnet, making transactions faster and cheaper. This is achieved without compromising Ethereum’s security.
Base is characterized by being easier to use for developers and cheaper for users. Which offers important incentives for more projects to be developed within the ecosystem, which we will go over later in this article.
In addition, it allows moving assets, such as cryptocurrencies, easily between Ethereum, Base and other compatible networks.
How Does Base Blockchain Work?
Base has as one of its main objectives to make financial transactions on Ethereum faster and cheaper. When you make a transaction, it is processed directly on the main chain, which can be slow and costly when there is a lot of traffic. Base, on the other hand, uses a technique called “rollup” to handle these transactions more efficiently.
What Base does is roll up many transactions off the main Ethereum blockchain. That is, instead of processing each transaction one by one on the main network, it processes them together and then sends a summary of all of them back to Ethereum. This summary includes a proof that the aggregated transactions are valid.
By operating in this way, Base reduces the amount of data needed, resulting in a much more efficient network. Even though these transactions are handled off-chain, they remain secure because, at the end of the process, all relevant information is recorded in Ethereum.
In addition, Base supports Smart Contracts, allowing developers to create decentralized applications that benefit from the speed and low cost of Base.
What Are The Benefits Of Coinbase’s Base?
There are more than a few reasons why millions of users and developers are turning to Base instead of other similar networks. Let’s take a look at the main ones to get an in-depth understanding of how it works and its attractions:
Enhanced Scalability
One of the main advantages of Base is its ability to handle a large volume of transactions efficiently. This allows solving one of the major problems Ethereum has suffered from since its inception: scalability. Despite many users using the network at the same time, Base remains fast and cost-effective.
Reduced Transaction Costs
Base is known for offering significantly lower transaction fees. This is made possible by its off-chain processing mechanism, which reduces the costs associated with using Ethereum, which is usually criticized for being expensive. For users and developers, this means they can transact and execute smart contracts without worrying about high fees.
Easy Integration With Ethereum
Developers can use the same tools and resources they already know from Ethereum, which is the most popular and trusted blockchain in the crypto ecosystem. This compatibility makes it easy to create and deploy new applications on Base, leveraging and leveraging all the virtues of Ethereum.
Improved Performance
This blockchain significantly improves performance compared to Ethereum. It offers faster and more efficient transactions, which is crucial for DeFi applications and other high-demand environments. This also helps make applications more accessible to a larger number of users.
Robust Security
Leverages Ethereum’s security features, which ensures that transactions are secure and tamper-resistant. This is especially important in an environment where trust and data integrity are paramount.
Coinbase Compatibility
Base is backed by Coinbase, one of the world’s largest cryptocurrency exchanges. This integration provides access to a large user base and resources, making it easier for a wider audience to adopt and use Base.
What Makes Up The Base Ecosystem?
The Base ecosystem has very popular projects within the DeFi space and we find platforms of all types such as Wallets, Bridges, Games, NFTs, DAOs and Decentralized Social Networks.
Let’s take a look at some of them:
Aave
Aave is a decentralized liquidity protocol where users can supply, borrow or liquidate assets.
Across Protocol
Across Protocol is a cross-chain token bridge that stands out for its efficiency and security, thanks to UMA’s optimistic oracle. With a single liquidity pool and a no-slippage model, it offers fast and secure inter-chain token transfers.
Add3
Add3 facilitates the creation and management of EVM smart contracts for web3 projects. It offers tools to deploy products, dapps and custom analytics in minutes, with code and no-code options.
Aerodrome
Aerodrome Finance is a decentralized liquidity hub in Base, designed to facilitate low-friction token exchanges and attract liquidity efficiently. It uses a voting-based governance model and incentive system to reward liquidity providers, allowing users to participate in both token exchanges and platform decision-making.
Bitget Wallet
Bitget Wallet is a comprehensive Web3 portal that connects more than 12 million users in 168 countries to the crypto universe. It offers inter-chain exchange, an NFT marketplace, access to DeFi, staking, a dApps store and cryptocurrency onboarding solutions.
Exodus
Exodus allows users to manage, secure and exchange cryptocurrencies such as Bitcoin, Ethereum, and more than 10,000 asset pairs, all from a simple and attractive interface available in desktop, mobile and browser versions.
Animoca Brands
Animoca Brands and its subsidiaries are engaged in the development and publishing of a wide range of blockchain games, traditional video games, and other technology-related products.
Conclusion
Base has managed to break very strongly into the DeFi ecosystem thanks to its multiple benefits and the backing of one of the most important exchanges in the world such as Coinbase. Its reputation since it was created has been impeccable and, added to its efficiency, has established Base as one of the most popular blockchains for software developers and users. An irrefutable proof of this is that projects from all sectors such as NFTs, Exchanges and Wallets, have decided to develop on Base.
