Coinbase develops its Base project – While layers 2 are multiplying on Ethereum, new major players are joining the race. In fact, the giant Coinbase recently announced the Basic launchits own second layer solution.
Base: a layer 2 on Ethereum to boost DeFi
Coinbase recently launched Base, a second-layer network. This is based on Optimism technology and inherits the security of Ethereum. This new project aims to provide an ecosystem with stockings fresh. Also, it must provide developers with an environment conducive to creating decentralized applications.
In order to stimulate the development of its solution, Coinbase has identified four key innovations to develop on the base. With this in mind, the company invites developers wishing to set up one of these applications to make themselves known via a dedicated form. The latter will thus be able to benefit from a financial aid off the Base Ecosystem Fund.
>> Want to trade cryptocurrencies without leaving your shirt? AscendEX has a nice surprise in store for you (commercial link) <<
The four major innovations envisaged by Coinbase
THE flatcoins : inflation-linked stablecoins
As a first step, Coinbase wants to create inflation-linked stablecoins to protect users from bad central bank decisions. These « flatcoins » will be based on consumer price indices and inflation data. Thus, they will offer stability of purchasing power to users, while protecting them from economic uncertainties.
“We are also in favor of other forms of ‘flatcoins’ which are not pegged to fiat currency, but rather fill the space between fiat currency pegged stablecoins and volatile cryptoassets. »
Statement from Coinbase
An on-chain reputation system
To establish trust between users, Coinbase offers develop an on-chain reputation system. This protocol could implement a credit score or ranking system for ENS names. Coinbase is also devising other measures to build trust within the blockchain.
However, it is critical that these reputation protocols maintain user privacy and autonomy.
An on-chain limit order book (LOB)
Coinbase is considering the creation of an on-chain limit order book to provide more advanced trading platform. By eliminating counterparty risk through self-custody, this on-chain exchange would allow professional traders and institutions to execute similar trading strategies to those of traditional financial system.
Base’s high processing capacity would open up new possibilities for spot trading, limit orders, options, perpetual contracts and more.
A safer DeFi
To make the DeFi ecosystem more secure, Coinbase wants to develop tools who protect against vulnerabilities in the code of smart contracts and the logic errors protocols.
Self-service security auditing tools and enhanced auditing services could help prevent threats, while kill switches and incident response systems would help manage problems when they arise.
Coinbase would also like to see more insurance protocols to serve as ” security net ” to users in the event of the exploitation of smart contracts.
While Base is placed in the family of Optimistic Rollups, zkRollups also continue to evolve. Recently, zkSync, for example, announced theopening of the mainnet of zkSync Era to all users.
Cryptos and blockchain technology are still young and volatile sectors. Any investment involves risk. As a well-informed investor, have you done your own research and decided to take the plunge? Current prices are an opportunity to add a few satoshis to your wallet! To do this, register on AscendEX (lien commercial).
