Crypto exchange Coinbase recently operationalized Base. It is a Layer 2 blockchain that offers solutions to the challenges faced by Ethereum dApps. Base is an important technological evolution, that’s for sure. However, the infrastructure still has to prove itself.
Base, a promising Layer 2 solution? …
Despite a generally sluggish crypto market, Coinbase has achieved a remarkable breakthrough by operationalizing Base. It is a Layer 2 blockchain intended to improve the functioning of decentralized applications (dApps) on Ethereum.
Concretely, Base is presented as the Layer 2 solution to increase the processing capacity of Ethereum dApps. And this is not the only advantage attributed to it. Indeed, Base would also serve to streamline user interfaces by reducing transaction costs.
For the project’s promoters, Base is emerging as a transformational catalyst for decentralized applications. So far, the performance of the Layer 2 solution seems to confirm this outlook.
Indeed, Base has achieved impressive numbers since its launch. Layer 2 totals, as of August 21, 2023, a daily number of transactions estimated at 1.27 million. A performance that puts it ahead of competitors like Arbitrum and OP Mainnet.
Some believe that this result is largely due to Friend.tech. It is a decentralized social media platform built on the Base technology infrastructure. A choice that would have increased the popularity of Friend.tech.
Does Base’s positive result reflect the effectiveness of the technology it offers? The answer to this question is not settled. Some analysts may even feel that Base is in fact overpriced.
… Who has everything to prove?
To be mistaken, some experts agree that Base doesn’t really deserve all the hype it has generated. And certain technical reasons objectively justify their position on the subject.
The first is that the architecture and overall stability of Base have not yet been tested in real situations. A lack of validation that could cause potential users to err on the side of caution. Which could also affect its maturation.
The second thing is that Base is entering an already prolific, if not saturated, market. Solutions like Arbitrum and Polygon (MATIC) are well established in the Layer 2 ecosystem. This is because they have proven their relevance, which is not yet the case with Base.
In this context, would Base succeed in getting rid of such fierce competition? The answer is not evident. What is certain, however, is that its success will depend on its ability to supplant its competitors. This, by bringing added value that the latter do not offer.
For the time being, its first achievements, its technological potential and the support of Coinbase place it in pole position to influence the ecosystem of Layers 2. It would still be necessary for the promoters to tackle the security problems which already seem to abound.
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