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Bankless: Why do we care about Base?

Bankless: Why do we care about Base?

BlockBeats2024/07/07 03:52
By:BlockBeats
Original title: Unpacking the Base Narrative
Original author: David C
Original translation: Lucy, BlockBeats


Editor's note:
This article explores Base's prominent position in the on-chain ecosystem and its tight integration with Coinbase. As a representative of Base's rapid growth into a major player in just one year, Base has demonstrated its uniqueness through its partnership with Coinbase, its active developer and user ecosystem, and key collaborations with important partners such as Stripe.


The article deeply analyzes how Base leverages its unique advantages, including technological innovation, strategic cooperation and industry leadership, as well as Coinbase's key role in promoting its on-chain ecosystem. This article not only highlights Base's growth and its potential in the DeFi field, but also emphasizes the challenges and opportunities it may face in the future.


Coinbase’s L2 solution, Base, has quickly become one of the most notable hot spots on the chain this round, firmly establishing itself as the most innovative corner of Ethereum.


Base’s rise and continued development has become a hot investment story that is hard to ignore.


Launched in July 2023, Base is built on the OP Stack and is designed to enable cheaper and faster Ethereum transactions, a key feature that has contributed to its success. Since its launch, Base has built a vibrant ecosystem covering DeFi, NFTs, and user-friendly applications, placing it at the forefront of all on-chain trends. It has partnered with Stripe to launch stablecoin services, become a hub for the launch of third-layer (L3) solutions, and has always been at the center of liquidity rotation that continues to trigger calls for "Base season", even surpassing Optimism in terms of on-chain TVL!


This article will explore what makes Base unique among other L2 platforms and how it is gaining momentum from Coinbase and the rumored token airdrop, all of which together make Base a can’t-miss destination on-chain. Let’s get started!


Why is Base different?


Base is notable for its deep integration with the Coinbase ecosystem and reputation as a consumer chain.


Base’s integration with Coinbase brings the exchange’s large consumer base closer to the chain, laying the foundation for building a community of builders and users.


Eco-initiatives like Onchain Summer have helped spotlight developers and creators, making the chain a popular place for users to gather. Base continues to demonstrate its commitment to creators and foster an atmosphere of experimentation, which has led to many unique events on the chain, including trading AI music with Crate, private conversations on friend.tech, and competing in WorldPVP.


In addition, Coinbase provides the chain with a wealth of tools to make life on the chain more convenient, most notably their recently launched Smart Wallet, which simplifies the login process, does away with lengthy recovery phrases, and allows dApps to pay gas fees on behalf of users.


Together, these innovations build a supportive ecosystem that rewards builders who try new things, which in turn keeps users engaged and fosters a casual, consumer-friendly atmosphere—something that’s all too rare in the life-or-death arena of DeFi.



Will Coinbase take Base to the top?


Coinbase’s backing brings several key advantages that have set Base up for success.


Trust: As one of the most recognizable and trusted names in the industry, Coinbase adds credibility to the chain, which aims to assure potential users that the chain will operate with integrity. Not only has this been critical to attracting Coinbase’s 110 million users, providing a friendly and safe place to venture on-chain, it has also enabled Base to forge important partnerships with major partners like Stripe.


Partnership: Base’s partnership with this financial services giant will have a dual effect, making L2 a payment highway, potentially competing with Solana, which has benefited from large-scale stablecoin transactions in this cycle, and showing other Web2 companies that Base is a reliable place to expand on-chain business. Having an established global enterprise backing it financially gives Base the ability to continue to innovate and provide its community with a variety of services such as cloud access, institutional portals, and an all-in-one development platform.


Marketing: Their strong financial reserves also serve as a powerful marketing machine to bring Base and the industry as a whole closer to the public, thanks to corporate backing that regularly runs TV commercials that will make your parents stop and say, "Oh, I never thought of that."



Political power: Finally, no company has been as aggressive as Coinbase in developing relationships with regulators to push for clear and productive regulation. From funding "pro-crypto" initiatives to regularly meeting with senators and congressmen, the exchange continues to represent the industry as a whole. While they themselves are currently facing a lawsuit, the reputation they have gained from it could serve as a shield for Base as they face legal complexities. Additionally, it also means that the chain will be committed to improving security and compliance as an additional safeguard in case something goes wrong.


All in all, Coinbase’s partnership with Base not only provides credibility and financial backing, but also strengthens its potential with key partners, regulatory support, and broad market coverage, making it a strong contender on the chain.



What about the Base token?


Despite Base’s rapid growth and success, it is still a work in progress.


The platform’s fraud prevention system is still a work in progress, which means Base is not yet fully decentralized. However, the team is actively pushing for decentralization.


Unlike other major L2 chains, Base currently does not have its own token and has not made any official announcements indicating a future token launch. Despite this, many still believe that the chain will find a way to launch a token. While this currently means there is no direct way to invest in the current success of the network, the future possibilities make using the chain more attractive. Additionally, a more direct incentive could come from Optimism’s next retroactive airdrop, given that the previous airdrop rewarded creators across Superchain, including Base.


Until then, investing in tokens launched on L2 could offer an alternative path to exposure to the Base ecosystem.


Base’s Advantages


In just one year, Base has quickly grown into a significant on-chain player with its integration with Coinbase, an active ecosystem of developers and users, and key collaborations with important partners like Stripe.


Coinbase’s support not only provides Base with the credibility, financial backing, and regulatory support that are critical to its growth and stability, it also enables it to operate initiatives like Onchain Summer, which rewards on-chain activity and experimentation, thereby ensuring that there is always something new to do on the network.


In addition, the potential future launch of Coinbase tokens also adds incentive to operate on Base, an experience that is increasingly simplified by the launch of features such as Smart Wallet.


As Base expands and innovates, its user-centric approach, advanced technology, and strategic partnerships backed by Coinbase make it one of the premier on-chain destinations, and perhaps even the most premier.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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