Research Summary
- Base is a new L2 (Layer 2) Blockchain built on top of Ethereum and is created by Coinbase.
- Layer 2 blockchains are built on top of existing chains (Layer 1) like Bitcoin and Ethereum. They leverage the security of the original L1 chain while increasing transaction speeds and reducing fees.
- Base uses the “OP Stack”, the same technology that powers Optimism, another L2 solution.
- One of the main reasons for the creation of Base is Coinbase’s vision to introduce its 100 million users to on-chain interactions.
- Base aims to bring the next million builders and billion users on-chain.
- Despite the existence of other L2 solutions, Base stands out due to its backing by Coinbase and its potential to introduce a vast number of users to the crypto space.
- Base has announced several partnerships and mints, indicating a strong start for the platform.
- Using Base involves “bridging” funds from Ethereum to Base, and users can transact on Base similarly to Ethereum but with lower fees.
- The author expresses a bullish stance on Ethereum and believes that L2 solutions like Base are crucial for Ethereum’s scalability and widespread adoption.
Actionable Insights
- Explore Base: Given its backing by Coinbase and its potential for scalability, consider exploring opportunities on Base.
- Stay Updated: With Base’s partnerships and mints, there might be potential investment or collection opportunities.
- Bridge Funds Carefully: If considering moving funds to Base, be aware of the bridging process and potential time delays when moving funds back to Ethereum.
- Consider L2 Solutions: If bullish on Ethereum, consider the potential of L2 solutions like Base for future investments or developments.
- Continuous Learning: The crypto space is rapidly evolving. Stay informed and never stop learning to make informed decisions.
