Base, Coinbase's new Ethereum Layer-2 network, was recently officially announced. The exchange claims that Base will enable safe, affordable transactions in a developer-friendly setting for creating decentralized applications compatible with Ethereum.

Base offers a simple transition path for Coinbase's sizable user base into the larger Web3 economy. Its introduction has generated a lot of enthusiasm amid expectations that by making it simple for users to begin exploring what it offers, it may drive millions of new users to join the decentralized web ecosystem.

According to Coinbase, Base gives consumers a simple way to access Solana and other L1 blockchains. Because of its tight connection to the exchange, Base is highly compatible with various L1 networks and provides straightforward on- and off-ramps from cryptocurrency to fiat and vice versa.

In an interview, Zé Atalaya, the Geo Expansion & Token/Chain Integration Manager, discussed the integration of Ramp Network with Base. Atalaya highlighted that Coinbase's launch of Base is a strategic decision aimed at diversifying its product portfolio and retaining its substantial user base of over 110 million cryptocurrency holders. This move is particularly significant in light of the recent trend of individuals transitioning to decentralized exchanges.

According to Atalaya, this project aims to move those users onto the blockchain, furthering the decentralization of Coinbase's services. "It's a tactical move in line with a trend where users of cryptocurrencies are moving away from purely centralized exchanges. However, this change will take place over some time rather than immediately.

Riding The Wave of Layer 2

According to Jagdeep Sidhu, co-founder, and CEO of SYS Labs, the introduction of Base also enables Coinbase to participate in a second noteworthy trend that has seen more dApps switch to L2 networks for scalability and efficiency. "By launching Base, an Ethereum Layer-2 (L2) solution, Coinbase aims to act as both an insurer and a custodian, thereby enhancing security and trust within its ecosystem," he said.

According to Jagdeep Sidhu, co-founder, and CEO of SYS Labs, the introduction of Base also enables Coinbase to participate in a second noteworthy trend that has seen more dApps switch to L2 networks for scalability and efficiency. "By launching Base, an Ethereum Layer-2 (L2) solution, Coinbase aims to act as both an insurer and a custodian, thereby enhancing security and trust within its ecosystem," he said.

In a post on X, Nexo Co-Founder Antoni Trenchev claimed that Base will give the layered approach to developing dApps new life. He clarified that Base provides competitive alternatives like Arbitrum or ZKSync with cost-effective Ethereum security and scalability by utilizing the open-source Optimism stack.

When the next cryptocurrency bull run hits, Trenchev predicts that the value of these networks will soar. "Last bull ru,n it was the L1s that stole the spotlight, but this time we might see the bulls have their way in the L2 arena," he said.

Do We Need Another L2, though?

It's realistic to question if the market needs yet another L2, given the abundance of rival L2s already on the market, including reputable networks like Polygon, Arbitrum, Loopring, Immutable X, and others.

However, the trend quickly picks up, and Base will appeal to many consumers. Sidhu believes that Base has an excellent opportunity to stand out, especially given its connection to Coinbase. He emphasized that there is still a lot of space for growth because L2s are still a relatively new idea.

Sidhu says a wider variety of L2s can benefit the crypto business. He says, "The current landscape is flooded with execution models frequently misclassified as L1." There is much room for an explosion in L2 solutions, and hundreds may exist. Within the decentralized ecosystem, this diversity stimulates innovation and satisfies various needs and preferences.

A Rapidly Expanding Ecosystem

The decentralized exchange (DEX) platforms Uniswap and Maverick Protocol allow users to supply liquidity and trade tokens at a low cost and are already up and operating despite Base having only recently launched. Masa Finance will enable users to register domain names on the network. Beam has released its crypto payments app on Base, and Aragon has unveiled a low-code tool for building decentralized autonomous organizations (DAOs) on Base.

These are only a few apps that are now operational on Base, and they have significantly increased the network's user base and liquidity.

According to Ramp's Atalaya, Base's rapid development is unsurprising because it combines a user-friendly technological infrastructure with a substantial captive audience for early adopters. Because Coinbase has such a large user base, one of its primary advantages is that developers can focus more on innovation and less on marketing.

"This presents a compelling proposition for developers," Atalaya said. The ability to work within a robust technological framework and have access to a sizable user base from the beginning is something that Base uniquely provides developers.

According to Sidhu, the intimate relationship between Base and Coinbase offers improved visibility and more straightforward compliance, which makes dApps more enticing to institutional investors. He also mentioned Base's original method of modular scaling.

According to Singh, Base teaches familiar users and aspiring developers about the opportunities in the decentralized environment by demonstrating that scalable solutions are easily accessible. It directs users where to build without worrying about gas optimizations, frequently resulting in contract abuse. The backing of a well-known organization like Coinbase and this educational component makes for a strong proposition.

Driving Web3's Expansion

The Base is in an excellent position to aid in expanding the Web3 environment, having previously established a healthy ecology. One way it can accomplish this is by giving current Web2 brands an easy onramp. Since Coinbase has a solid reputation, it will comfort businesses sceptical of the new, decentralized internet.


According to Nexo's Trenchev, Base can be the initial step toward widespread Web3 adoption. It facilitates the process of bringing on new users, among other things. He noted that gas priced in ETH is quite advantageous for the second-largest cryptocurrency.

The scale of Base's prospective user base is what Atalaya finds most encouraging. If Coinbase can convince a sizable portion of its 110 million users to join Base, they will switch from investors to participants, significantly slowing Web3's expansion.

Once onboarded, "these users are likely to delve deeper into the Web3 realm, which will catalyze broader adoption," Atalaya claimed.

Sidhu concurs that there is reason to believe that Base will have a good effect on Web3, noting that Coinbase has declared openly that it wants to bring billions of people into the cryptocurrency ecosystem. With its secure, affordable, and developer-friendly environment, he claimed Base is the ideal tool for accomplishing this. According to him, the Base is a crucial player in the changing Web3 scene because of its focus on interoperability and dedication to being a bridge rather than an island.