Not long ago, the crypto exchange Coinbase launched its Layer 2 for Ethereum, called Base.
Yesterday, problems were reported with block validation, which temporarily stopped.
In reality, as later reported, it was a ‘delay’ in block production, due in part to the need for an internal infrastructure upgrade.
The problem was resolved and the upgrade carried out.
It is not uncommon for similar technologies to require some intervention in the first period after launch to resolve a problem, and in this case the intervention was quite rapid and resolved.
Base: the Coinbase exchange’s Layer 2
Base is a Layer 2 for Ethereum, useful mainly for reducing transaction fees.
It is no coincidence that the launch of native USDC tokens on Base was also announced yesterday, as the world’s second largest stablecoin by market capitalisation is based on Ethereum.
The addition of USDC to the Base ecosystem increases its liquidity, although in these early stages of trading it is advisable to exercise some caution when trading on Base.
As a decentralised Layer 2, it has also recently been used to launch scam coins, new tokens whose sole purpose is to steal money from users.
Of course, Coinbase has nothing to do with these scams, also because it is ‘only’ the manager of Layer 2, on which anyone can create tokens.
The idea is to allow different protocols and platforms to be built on top of Base, not just Coinbase.
Despite its recent launch, Layer 2 Base has already attracted over $400 million in TVL, placing it in eighth place among the various blockchains, ahead of even Solana, Cronos and Cardano.
Suffice it to say that among the seven blockchains that precede Base for TVL, one is obviously Ethereum, and no less than three others are Ethereum Layer 2 (Arbitrum, Polygon and Optimism).
Practically only Tron, the BSC chain and Avalanche perform better than Base in this respect, excluding Ethereum and its layer 2s.
Coinbase has also already launched a new crypto lending service on Base, but one aimed specifically at large investors.
A recent document filed by Coinbase with the SEC shows that up to $57 million has already been raised for this project.
Coinbase is a publicly traded company, so it is required to report this information to the government agency that oversees stock markets.
The service would make it possible to obtain loans by using cryptocurrencies as collateral, similar to what traditional banks do with their primary brokerage service.
In other words, Coinbase is becoming more and more like a large traditional financial services provider, with cryptocurrencies always at the core of the services provided.
This effectively brings cryptocurrencies fully into the global financial system, integrating them as one of many traded assets.
Although it is still possible to use cryptocurrencies without going through banks or the like, using non-custodial wallets and decentralised exchanges (DEX), the use of cryptocurrencies within the traditional financial system is likely to increase, thanks to companies like Coinbase.