In a recent Decrypt interview, Coinbase CEO Brian Armstrong clarified the company’s stance on a Base token. Despite earlier statements, Armstrong emphasized no plans for such a token.
This underscores Coinbase’s strategic approach to its layer-2 network development and interactions in the broader crypto ecosystem.
Base, which was launched in August, has exhibited significant growth, emerging as the third-largest layer-2 network in terms of total value locked (TVL). Since its inception, Base has accrued around $500 million in TVL and boasts a million interacting wallets.
Layer-2 networks, built upon existing blockchains such as Ethereum (ETH), offer quicker and more cost-effective transactions. They address scalability concerns present in base layer networks. Additionally, Base’s rapid ascent in this competitive landscape is notable. It underscores its potential impact on the cryptocurrency market.
Coinbase CEO Brian Armstrong Unveils Ambitious Vision for Base
Armstrong envisions Base not solely as a proprietary endeavor for Coinbase but as a community-driven project that seamlessly integrates with the wider crypto ecosystem.
The choice of building Base on the Optimism (OP) stack on Ethereum strategically ensures broad compatibility and community engagement. This approach, coupled with Coinbase’s support, aims to establish trust and stability in the network.
Furthermore, Armstrong has set ambitious performance targets for Coinbase transactions, aiming for an average transaction time “under one second and one cent.”
Achieving these objectives will require substantial improvements to Base and a more extensive integration of layer-2 solutions across Coinbase’s platform.
Armstrong Eyes Broader Layer-2 Adoption, Calls for Industry Consolidation
Armstrong clarifies, “That’s not just with Base,” and mentions plans to integrate solutions like the Lightning Network on Bitcoin and other fast layer-1s such as Solana. Currently, approximately 7% of transactions through Coinbase use layer-2, and internal goals are set to “significantly increase” this figure as part of a “multi-year effort.”
While acknowledging the growing interest from other exchanges like Kraken and OKX in developing their layer-2 solutions, Armstrong cautions against a fragmented landscape where each application operates its own layer-2 network.
Moreover, he advocates for consolidation around a few layer-2 networks to optimize efficiency and interoperability within the crypto space.
Read More:
Nayib Bukele resigns as President of El Salvador in Anticipation Of Re-election
Tiger Global and Coatue Management Mark Down NFT Investments