1. Introduction to Base
Base is a secure, cost-effective, and developer-friendly Ethereum Layer 2 (L2) solution aimed at bringing the next billion users to web3. It inherits Ethereum's security while providing faster, cheaper transactions. Base is fully compatible with the Ethereum Virtual Machine (EVM) and seamlessly integrates token products and services with Coinbase.
On August 9th, Coinbase officially launched the public main net of its Base Layer 2 blockchain network. Coinbase does not plan to introduce a new token for Base and will continue to use ETH as the native GAS token. Built on the OP Stack, which is an open-source framework for optimistic rollup developed in collaboration with Optimism, Base is a pioneering developer of this technology.
2. Market Data of Base
According to Dune Analytics, Base's main net saw over 100,000 daily active users on August 10th, reaching 136,000, with a total of over 1 million active users. Additionally, the total on-chain transaction volume approached 7.5 million with gas fees reaching 850.33 ETH. As per L2BEAT data, Base's on-chain Total Value Locked (TVL) has reached $230 million, with a 69.51% growth in the past 7 days, ranking fifth among Ethereum Layer 2 blockchain lockups.
At the project's launch, Base's ecosystem gathered more than 100 DApps and service providers. In just a month, the number of projects increased to over 150, achieving new heights in on-chain data. Established blockchain projects like Compound, Uniswap, Aragon, 0x Swap, YGG, Balancer, Chainlink, Stargate, and OpenSea have been deployed or integrated into the Base main net. This indicates a diverse range of projects interested in Base, most of which are established players in the blockchain industry. Notably, on August 14th, Uniswap achieved $43.12 million in trading volume on the Base chain, as per DefiLlama data.
3. Key Features of Base
- Ethereum-Backed Security: Base offers the security and scalability required for decentralized applications. It leverages Ethereum's security and Coinbase's best practices, allowing seamless transitions from Coinbase, Ethereum L1, and other interoperable chains.
- Authorized by Coinbase: Developers can build decentralized applications on Base by accessing Coinbase's products, users, and tools. This integration allows developers to serve over 110 million verified users and access a platform holding assets valued at $80 billion.
- Powerful and Low-Cost: Base provides full EVM equivalence at an extremely low cost and focuses on enhancing the developer platform. Developers can set gas transactions for their DApps using a simple API for account abstraction and build multi-chain applications securely using user-friendly bridges.
- Open Source: Base aims to be decentralized, permissionless, and open to all, creating an Optimism-driven superchain with standard, modular, and rollup agnostic features. It joins Optimism as a core developer to foster a thriving community of contributors.
4. Base's Op Stack Solution
The OP Stack is a viable modular solution to build Layer 2 networks, developed in multiple levels, including Data Availability Layer, Derivation Layer, Execution Layer, and Settlement Layer. The modules are combined through APIs, allowing rapid construction of a Layer 2 network. Base and Op are both built on Op Stack, aiming to encourage developers to explore its potential and create a more interoperable and cost-effective superchain within Ethereum's multichain ecosystem.
5. Ecosystem Landscape of Base
The Base ecosystem boasts over 100 projects, with a well-established infrastructure that includes bridges, wallets, oracles, and node providers, among others. Native DeFi projects on Base contribute significantly to the locked value and trading volume, including Uniswap and Sushi. Mainstream NFT markets like OpenSea and ZORA have integrated into the Base main net. Notably, the social app Friend.tech allows users to tokenize their social networks for potential monetization.
6. Outlook and Impact of Base
Despite the fact that most Layer 2 scaling solutions are still in their early stages of development, they provide insights into how blockchain is evolving to support new use cases and attract billions of potential users.
The current process for users to take advantage of Layer 2 benefits involves bridging assets from one network to another, which introduces security vulnerabilities and the potential for user errors. Given that the majority of major dApps operate on multiple chains, interoperability between networks remains a challenging issue that needs to be addressed.
Should Base become the dominant Layer 2 network, it would result in significant revenue growth for Coinbase. Currently, Coinbase is the sole sequencer on the network, meaning it's the only entity that verifies, executes, and "sequences" transactions on the network, charging fees for these services. However, other sequencers are also expected to join the network.
Since the launch of Base, Coinbase has generated $2 million in revenue from sequencer fees. Assuming this level of activity is sustained, Coinbase's annual revenue could surpass $120 million. Beyond sequencer fees, Coinbase also aims to profit from Base by building trusted applications on top of the network.
The success of Base could impact the performance of Optimism governance token (OP). The treasury of the Optimism Collective consists of stakeholders working on building public product infrastructure for the Optimism ecosystem, and they receive 15% of Coinbase sequencer fees. These payments fund the development of public products, potentially accelerating the ecosystem's growth.
For more analysis, please follow Aibit's media account for real-time updates! This article is for reference only, does not represent any position, and is not intended as investment advice. Investment is risky, caution should be exercised.
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