The world’s second-largest crypto exchange by transaction volume ruled out harbouring plans to launch Base token.
The San Francisco-headquartered crypto exchange revealed via its chief executive statement that it would not launch native tokens for the recently unveiled layer two network Base. The executive indicated that Coinbase does not plan to make a token for Base.
Coinbase Exploring Interoperability of Base
Armstrong contradicted previous pronouncement by Coinbase chief legal executive Paul Grewal who indicated in a September statement that unveiling a token is a viable consideration in future. The legal head admitted he would not rule out unveiling the Base token issuance.
Armstrong hailed the Base progress since its unveiling in August, observing that it surged to rank the third largest layer-2 network in total value locked (TVL). The executive indicated that Base realized $500 million worth of total value locked.
Armstrong noted that the Base launch attracted closer to a million wallets readily, interacting with the layer-2 chain. He admitted that the Coinbase team is exploring its integration with other applications. As such, he profiled developers as super excited in gripping with the Base.
The Coinbase chief legal executive reflected on the Uniswap court ruling, Base L2 tokenization and the struggle for regulatory clarity in the US. Grewal considered layer two as a uniquely designed cryptocurrency network established upon Ethereum.
Grewal considers Base as a secondary layer capable of scaling the existing network to execute transactions more quickly than the Ethereum layer.
Grewal observed that several layer-2 networks have already unveiled native tokens also competing for market share within the digital asset space. He hailed the achievements since Base launched to become a favourite among users within a short period.
Armstrong indicated that the company seeks to avoid making Base a Coinbase element. Instead, he projected that Base would comprise a broader approach since it is uniquely built upon Optimism itself stack on the Ethereum.
Armstrong explained the move to transform Base into an interoperable layer 2 with the entire crypto community. As such, he cited full support granted by Coinbase as the ground that guarantees stability and trust.
Capping Transaction to a Cent and Second Speed
Armstrong iterated that Base, like other Layer-2 solutions, constitutes an element of the ambitious internal stretch objective. Such involves capping the average transaction cost on Coinbase to a single cent executed at an average transaction period below a second.
Armstrong indicated that realizing the below cent and second objective would involve undertaking considerable improvements to the Base. Its accomplishment implies making the Base layer two default on the platform. Such a move implies implementing a move that individuals hardly do in bridging to layer 2.
Armstrong observed that bridging is not limited to the Base. He noted that such mirrors Lightning Network integrating on Bitcoin and other layer-1s such as the Solana.
Armstrong restated that such constitutes the dominant trend since 7% of the Coinbase transactions are utilizing layer-2. Its accomplishment involves establishing internal goals within the multi-year effort to pump the numbers.
Armstrong set the Coinbase target at executing 99% of the transactions on layer 2 to realize the performance objectives below the one cent and second. He likened embracing layer-2 networks as similar to the internet migration from the dialup to the broadband.
Coinbase Chief Executive Rallies Industry to Consolidate Around Few Layer-2 Networks
Coinbase CEO indicated that integrating layer 2 constitutes a critical channel to onboard new applications online. Other crypto exchanges demonstrate such awareness in unveiling their fully-owned layer-2 networks. Nonetheless, he urged the industry to consolidate around a pair or single layer-2 network.
Armstrong rallying the industry to embrace single or two layer-2 networks follows the early November revelation that Coinbase rival firm Kraken was considering unveiling an L2. San Francisco-based Kraken considered collaborating with Polygon to unveil the L2 network.
A similar report surfaced of crypto exchange OKX plans to launch X1 as its zero-knowledge L2 established upon the Polygon technology.
Armstrong considered the move erroneous if every application launched their Layer 2. Nonetheless, he encouraged others to explore it and get other applications on layer 2.
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