What Is BASE Coinbases Layer 2 blockchain

In recent news it was announced that Coinbase was working on and then soon after released it's own layer two blockchain called BASE. While many thought this would be a revolution and shot up the stocks price.

As you can see based on that news the stock price touched on $100 per share but has now fell to $81 per share. The expected large hype out of the BASE blockchain ended up with just 10 million in trading.

This along with many other articles I have been writing about such as Web3 Gaming Story and Custom Micro Blockchains are showing us this is a recent trend by many. By creating their own chain they are able to have full control, heavily reduce fees and overall be in control of the asset before it moves off on to another chain where fees are involved.

In a way Ethereum, Bitcoin and other chains have been asking this for a while. By keeping crazy high fees and not budging they ended up reaping massive rewards for about 2-3 years. However development comes and that stress breaks which we are seeing now. As more and more layer two solutions like this come to be it will create a lot less demand of the native layer 1 token and far less fees to be generated on the block.

Details On BASE

BASE is Coin bases Layer 2 blockchain on the Ethereum network. There are no plans to from Coinbase to issue a token for the blockchain. Instead it seems like it will be used mainly for there internal systems to save on fees but it also seems like it's open for others to use to run applications on. The demand for it however is crazy low.

To me my first thoughts are if I build something on this blockchain the SEC and every other pain in the butt government entity is going to be all over it watching like a hawk. Not something anyone wants.

Or is it just that we are still in a bear market and there's very little demand for new projects, start ups and overall just another blockchain?

You can review the introducing BASE post that Coin base published here Introducing Base Coinbase's L2 Network

The other aspect of this might be there really wasn't all that much press about it. I also feel many large investors now wait on the sidelines before taking massive action on things.

Active user base on COIN has indeed been pretty impressive hitting at 136,000 on August 9th 2023.

One interesting area of BASE to watch will be the TLV on Base which you can checkout on DeFiLlama BASE Token

It's been picking up some decent action now hovering around 90 million total.

My biggest concern however is once again going to be government and the SEC. I have a feeling they are going to be all over this and start slapping restrictions, fines and whatever else. Time will tell.

Posted Using LeoFinance Alpha