Built on top of Ethereum, Layer-2 scaling solutions like Base speed up payments, so users don’t have to wait days on end for their transactions to get into the block and be processed. Layer-2 approaches improve Layer-1 scalability via protocol optimizations or consensus algorithm upgrades, so Ethereum becomes more accessible and efficient for users, ultimately reducing fees during periods of high demand. The blockchain is often congested, which poses a serious problem given Ethereum’s role in hosting various dApps, from DeFi protocols to NFT marketplaces. Therefore, Ethereum has turned to Base, a beacon of innovation developed to simplify the experience of building dApps, with a focus on ease of use and low costs, laying the groundwork for a unified, decentralized digital economy.
Following the completion of the Dencun upgrade, the transaction fees on Base have fallen close to zero, driving interest in Ethereum Layer-2 protocols, which now store data in blobs instead of expensive call data. One year ago, on June 15, Base mined its very first block, becoming open for millions of builders and billions of users. If you test your memory, you’ll recall the famous catchphrase “All your base belongs to us,” poorly translated from the opening cutscene scene of the Japanese video game Zero Wing. The Base team inscribed the legendary meme into the genesis block of the chain to help users navigate and understand Web3, becoming permanent on-chain citizens.
At The Moment, Base Doesn’t Have Its Own Token
Contrary to popular opinion, Coinbase CEO Brian Armstrong doesn’t intend to issue a token for Base, even if it’s the third most valuable Layer-2 network in terms of TVL, surpassing Arbitrum, with $3.81 billion in value locked. Since Base doesn’t have its own token, you need Ethereum to perform transactions on the blockchain. The ecosystem is proliferating and is highly disruptive, improving the scalability in the blockchain trilemma – Long story short, you need ETH, so find the best trading platforms for your needs (preferences and risk tolerance). Before you add the Base network to your MetaMask wallet, ensure it’s ready for use; remember that you must keep the recovery phrase in a safe place.
Base Is an Optimistic Rollup, Offloading Computational Burden from Ethereum
Base, the biggest chain of the Superchain, the unified network of chains built using the OP Stack, is what’s called an optimistic roll-up, meaning it executes transactions outside the Ethereum Mainnet so they can be processed faster, leading to higher efficiency. The transaction is re-executed, and the blocks are updated if an error is detected. It’s called an optimistic rollup because it operates under the assumption that all off-chain activities are valid. Still, there’s a challenging period – an allowed time window during which participants can dispute a transaction’s accuracy and validity; if disputed, the roll-up protocol quashes the fraudulent transaction.
The base takes advantage of a sequencer to bundle transactions and submit them to the Ethereum Mainnet, essentially a specialized node that maintains a semi-trusted position responsible for ensuring transactions are executed correctly. For the time being, Coinbase operates the Base sequencer, but it’ll decentralize this role with time. By way of illustration, Metis, a Layer-2 blockchain that enforces a decentralized pool of sequencer nodes, allows developers and users to interact with applications in an environment similar to Ethereum’s. A fraud-proof system is currently under development, so you’ll just have to trust the block proposer to submit the correct Layer-1 state roots.
Is Base Set to Become a Hub for SocialFi?
SocialFi combines social media with blockchain technology, rewarding users for posting high-quality content and providing them more control over how their data is used. Base accounts for roughly half of all SocialFi transactions within the cryptocurrency sphere, mostly due to the popularity of the Friend.Tech app, is a decentralized social token-driven app that makes it possible for creators to monetize their content or expertise. Friend.Tech has a TVL of $14 million. Let’s not forget about meme coins, a trending phenomenon on the network. Some of the most notable coins, which carry humorous and satirical themes, are $BRETT, $TYBG, $MOCHI, $BRIUN, and $BLOO.
USDC Is Now Available Natively on Base
USDC, or the USD Coin, is pegged to the U.S. dollar, so it’s always redeemable 1:1 to the American currency, held in reserve in a mix of cash and short-term treasury bonds. Not only is it a safe haven for cryptocurrency traders, but USDC also allows businesses to accept payments in digital money, shaking up sectors of activity like gaming and decentralized finance. The good news is that the USD Coin is now live on Base, so no bridging is required. There’s also a bridged form of USDC – USDbC – bridged from Ethereum; if you try to send it on Base, you may not be able to get it back.
As transfers are free on Base, the number of stablecoins has begun to rise on the network, enough for Base to leave Solana behind. Stablecoins are important in the cryptocurrency ecosystem because they guarantee stability and value, qualities that other digital assets lack; mass adoption is still in the early stages, even if there have been noteworthy examples in the past years. If you feel you’ve missed the boat on investing in Ethereum or just aren’t ready for such a volatile and risky investment, try USDC, which is compatible with several blockchains, including Polkadot, Algorand, Stellar, Noble, and Near.
Wrapping It Up
Base celebrates its first anniversary. It’s not just about remembering the past, but about embracing the ongoing evolution. While Bitcoin pioneered the genesis block, others have adopted this mechanism to launch their own blockchain networks, with small changes due to technical parameters. What people can do with cryptocurrency is mostly limited, so it’s necessary to get to a place where there’s no more speculation and digital assets are integrated in our day-to-day existence – blockchain is still a new field, an open design space for the intellectually curious. In the future, Base will further integrate with the Optimism ecosystem to boost decentralization and scalability, transitioning through various solutions to leave a mark on the Superchain.
