The Base chain is a secure, low-cost, and developer-friendly Ethereum Layer2, aimed at bringing the next billion users onto blockchain. Incubated by Coinbase, Base is deployed on the OP Stack, the second L2 network outside the Optimism mainnet, intending to become part of the Optimism superchain.
The launch of the Base chain aligns with Coinbase's long-term plan. Its goal is to expand Ethereum through a robust, interoperable Web3 ecosystem, allowing anyone, anywhere, to build decentralized applications or on-chain DApps securely, cost-effectively, and developer-friendly using Base. Additionally, Base serves as the on-chain home for Coinbase's existing products, users, and assets. DApps on "Base" can seamlessly integrate with Coinbase, fiat gateways, and the Coinbase ecosystem.
About OP Stack
The Base blockchain network relies on the foundational technology of OP Stack, enabling seamless interconnection with projects adopting the same technology stack. Optimistic Rollup, as the Layer2 scaling technology for the Optimism blockchain project, provides robust support for various transactions through its simple principles.
In the Optimistic Rollup mechanism, all transactions are carefully packed into a block, verified for authenticity through fraud proofs. Upholding an optimistic spirit, transactions are assumed valid by default, and challengers bear the burden of proof. To achieve this, numerous on-chain verification nodes collaborate to ensure the honesty of Optimistic Rollup. Once verified, the block is formally submitted to blockchain; otherwise, it undergoes rollback processing.
OP Stack, crafted by Optimism for the next-generation architecture, comprises excellent, trusted blockchain module components. These distinctive components implement specific stack functionalities, providing developers with a treasure trove of convenient development modules for building various applications.
Features of OP Stack
OP Stack adheres to the design principles of efficiency, simplicity, and scalability, comprehensively covering levels above L1, including blockchain browsers, message-passing mechanisms, governance systems, and other tools' extensions. Developers can easily achieve "one-click launch" for any L2 and DApp issuance, breaking the isolation dilemma of various L2 solutions.
Optimism officially refers to the integration of various L2s as a "superchain," aiming to gather isolated L2s into an interoperable system, constructing a horizontally scalable blockchain network. These chains share security, communication layers, and development kits, supporting Coinbase's mission in the fourth stage: creating bedrock for over a billion users to join the crypto economy and supporting the operation of thousands of DApps.
Advantages of Base
Built on the Ethereum EVM ecosystem, Base possesses the security and scalability required to support distributed applications. Leveraging Ethereum's underlying security and Coinbase's practical experience, Base enables seamless integration from Coinbase transactions, Ethereum Layer1, and other interoperable links. Base provides full EVM compatibility at extremely low costs, facilitating the development of the developer platform. It sets gas fees for dApps through a simple API, abstract accounts, and constructs multi-chain applications through user-friendly cross-chain bridges. Base follows open-source principles, aiming for decentralization, permissionless usage, and openness to anyone wishing to create a superchain with Optimism.
Furthermore, Base relies on the Coinbase ecosystem, boasting a large number of verified users and hosting assets valued at nearly a trillion dollars. In the future, Base can seamlessly integrate various products under Coinbase, thus facilitating the construction of bridges between centralized and decentralized finance (CeFi and DeFi), bringing a large user base into the DeFi space.
Base Market Data
Basic Data
As of the draft, Base's total transaction count reached 84,314,907 transactions, total address count reached 62,076,872, and the number of created transactions is 165,778; the total transaction volume is 4.07 million ETH, with a 24-hour on-chain transaction volume of 27.8K ETH; the number of active addresses is 344,900, and the number of addresses holding ETH is 3,488,204; among them, there are 5,767,986 ordinary addresses and 56,308,912 contract addresses.
Protocol Data
According to data, Base network's Total Value Locked (TVL) is $727 million, with a 15.18% increase in the past week, and on-chain minting value is $191 million. Currently, the total TVL for Ethereum Layer2 networks is $19.61 billion, with Base accounting for 3.65%.
Popular Ecosystems in Base
Currently, the Base ecosystem has over 100 projects, relatively well-established, with infrastructure occupying a significant portion. This includes but is not limited to bridges, On-Ramp, wallets, oracles, node providers, etc. Native DeFi projects on Base also hold a substantial portion of locked value and trading volume. Mainstream NFT markets and minting tools like OpenSea and ZORA have integrated with the Base mainnet.
Avantis
Website: https://www.avantisfi.com/
Avantis is an on-chain perpetual contract product based on oracles, allowing users to trade cryptocurrencies and real-world assets with up to 100x leverage. Users can earn profits by providing USDC liquidity as market makers. Its goal is to enable any trader to access leveraged trading of any asset class at low fees, self-custody, and transparent execution. It also empowers anyone to become a market maker and earn revenue from derivatives and complex financial products.
It's important to note that Avantis has not yet released its token, but plans for a token release are underway. The project token, AVNT, will allow protocol ownership through income capture and governance. This includes AVNT holders earning platform fees through unilateral staking, as well as incentives for traders and liquidity providers.
BSX
Website: https://www.bsx.exchange/
BSX is building a decentralized spot and perpetual contract exchange, BSX Exchange, operating through off-chain order books and on-chain settlement. The Base Foundation believes that on-chain trading should receive support from various market structures, and is pleased that BSX can integrate the best CeFi trading experience with DeFi.
Onboard
Website: https://www.onboard.xyz/
Onboard provides users with self-custody wallet services, allowing wallet-to-wallet transfers and cryptocurrency swaps in a simple and secure manner. It also supports converting cryptocurrencies into local currencies (currently only supporting Nigerian Naira). Its platform's user-friendly design and self-custody infrastructure are tailored for the mass adoption of cryptocurrency in the African market.
Onboard's parent company, Nestcoin, announced a $1.9 million strategic investment. In addition to the Base ecosystem fund, institutions such as Hashed Emergent and Adaverse Accelerator also participated in this investment. A few months ago, Nestcoin announced a shift in its strategic direction, transitioning from simultaneously incubating multiple products to focusing on Onboard's development.
Paragraph
Website: https://paragraph.xyz/
Paragraph is an on-chain creator platform that helps creators publish, share, and build businesses around their content. Articles published in Paragraph are permanently stored on Arweave, and readers can subscribe to their favorite authors using their wallet address or email. Content can also be shared on Web3 social platforms like Farcaster for discussions.
Paragraph offers creators a range of services, including NFT -based membership customization and the option to store content outside of Arweave. Creators can mint different NFTs on Paragraph with zero gas fees, using them to control access permissions for corresponding articles.
OpenCover
Website: https://opencover.com/
OpenCover is the first L2 insurance aggregator that collaborates with underwriters like Nexus Mutual. It sells on-chain insurance to support dozens of DeFi protocols, including Aave, Curve, and Uniswap, protecting retail portfolios economically from major on-chain risks. OpenCover obtains guarantees from audited on-chain underwriters against smart contract hacks, oracle failures, and more.
Truflation
Website: https://truflation.com/
Truflation is an on-chain financial oracle that provides automated, independent daily inflation reports based on real-time compilation of data from over 18 million points and 40+ data sources, including U.S. CPI data, housing data, labor data, etc. Compared to traditional monthly-updated indices, Truflation offers more comprehensive and up-to-date information. The secure blockchain infrastructure of Truflation provides fair and verifiable data for business decision-making.
Truflation has issued the TFI token. Token holders can participate in protocol governance by staking and locking their tokens for a specified period. The longer the token lock, the higher the earned Annual Percentage Yield (APY). Staking and locking results in ve tokens, granting holders voting power in various protocol activities, including decisions related to token allocation, rewards, data category selection, market strategy, etc. Additionally, ve token holders receive a portion of protocol fees for active participation, as well as rewards from cutting emissions.
Conclusion
Since its launch, Base has garnered significant attention. As the first blockchain project launched by a publicly listed company, Base is exploring new possibilities and aims to lead a broader audience into the Web3 world. Although Base may not have made significant technological breakthroughs compared to other L2 solutions and faces challenges in token issuance due to Coinbase's strict regulatory requirements, it strategically delegates the incentive for ecosystem development to OP in hopes of achieving a mutually beneficial vision. Coupled with its effective use of Ethereum's moat and its user base advantage, Base is poised to quickly expand its ecosystem as the market rebounds.
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