San Francisco-based Coinbase Global took a significant step this Wednesday by announcing the public unveiling of its Ethereum layer-2 blockchain named ‘Base‘. This move positions the company as the first publicly listed entity to introduce its own blockchain.
Driving Force Behind ‘Base’
Jesse Pollak, Coinbase’s head of protocols, stated the primary aim of Base: “To usher in the next million builders and billion users onchain.” The intention is to facilitate a decentralized financial system on a global scale, aiming to amplify economic autonomy.
Base’s Inception and Growth
Since its testnet introduction earlier in February and subsequent developer release in July, Coinbase has integrated various projects across domains, including finance, art, and music. There’s also an emphasis on innovative uses like platforms tailored for restaurants, gaming, community projects, and advocacy.
Potential Impact of Onchain
Coinbase suggests that the ‘onchain‘ platform has the potential to significantly reshape the digital environment. Recalling the digital transformation catalyzed by the internet in the early 2000s, ‘onchain’ is perceived as the next phase in this progression. The goal is for everyday users to have increased control and ownership in the digital realm.
Increasing Traction in the Digital Space
The Ethereum platform now hosts over 230 million unique addresses globally. Furthermore, transactions on Layer 2 have started to surpass Layer 1 transactions. The sphere of developers is also experiencing expansion, with estimates pointing towards the creation of up to a million new software engineering roles by the end of the decade.
‘Onchain Summer’: A Celebration of Digital Arts and Culture
In line with the launch of ‘Base Mainnet‘, Coinbase has introduced ‘Onchain Summer‘. This event, spanning several weeks, is dedicated to various digital elements including art, culture, gaming, and more. Attendees have the opportunity to engage in multiple activities such as minting the “Base, Day One” NFT and exploring ETH grants tailored for developers and creators.
Economic Collaborations and Partnerships
As of now, Base has attracted a notable amount of Ether, with Dune Analytics reporting a transition of over US$127.3 million to the blockchain. The ‘Onchain Summer’ event has also sparked interest from several major industry names. Partnerships and collaborations have been established with entities like Coca-Cola, Atari, and the NFT marketplace OpenSea.
Facing Challenges from Regulatory Bodies
However, it’s not all smooth sailing for Coinbase. The company currently faces regulatory challenges, particularly from the U.S. Securities and Exchange Commission (SEC). In June, the SEC initiated lawsuits against both Coinbase and Binance.US, suggesting potential violations of securities laws. Both companies have since responded, denying the allegations.