As Ethereum continues to face scalability and transaction cost challenges, Layer 2 (L2) solutions have emerged to help relieve the pressure on the Ethereum mainnet. One of the most notable new L2s in this space is Base, a Layer 2 network built by Coinbase, one of the world’s largest centralized crypto exchanges. Designed to provide fast, low-cost, and secure infrastructure for decentralized apps (dApps), Base aims to be a bridge between traditional users and the broader decentralized web.
What is Base?
Base is an Ethereum Layer 2 (L2) network that uses Optimistic Rollups to process transactions off-chain before finalizing them on Ethereum. It’s developed by Coinbase using the OP Stack, an open-source framework created by Optimism, one of Ethereum’s leading L2 scaling solutions.
The goal of Base is to make on-chain development accessible to millions of users, with a developer-friendly environment and seamless integration with Coinbase’s existing ecosystem of products, users, and fiat onramps. Unlike many L2s, Base has no native token; instead, users pay gas fees using ETH.
Who Built Base?
Base was developed by Coinbase, but it wasn’t built from scratch. Instead, Coinbase used the OP Stack, the same open-source codebase that powers the Optimism mainnet. Base is the second major chain to be built on the OP Stack, after Optimism itself.
Coinbase’s involvement includes:
- Acting as a core contributor to the OP Stack
- Collaborating with the Optimism Collective on the broader vision of the Superchain
- Committing a portion of Base’s revenue back to the Optimism ecosystem
Although Coinbase incubated Base, the goal is progressive decentralization, moving control away from Coinbase over time toward the broader community.
How Does Base Work?
Base functions as an Optimistic Rollup, which is a type of Layer 2 scaling technology that bundles many transactions off-chain and submits them to Ethereum in batches. This reduces load on the Ethereum mainnet and lowers fees, while still inheriting Ethereum’s security.
Key Technical Features:
- Optimistic Rollups: Assume transactions are valid by default and verify only if challenged
- OP Stack: Modular and upgradeable architecture that allows customization
- EVM Compatibility: Fully compatible with the Ethereum Virtual Machine, meaning no need to rewrite existing smart contracts
- Bridges: Base supports asset bridging from Ethereum and other networks through third-party tools
Every transaction on Base includes:
- A Layer 2 fee for processing within Base
- A Layer 1 fee for posting the batch to Ethereum
Together, these fees are still significantly cheaper than transacting directly on Ethereum.
Base and the Optimism Superchain
Base is a foundational piece in the Superchain vision, a network of interoperable Ethereum L2 chains, all built on the OP Stack. These chains would share:
- Security
- Governance frameworks
- Bridging protocols
- Developer tools
Much like Cosmos enables interoperability between different chains in its ecosystem, the Superchain aims to allow all OP Stack-based chains, including Base, to seamlessly interact with one another. Coinbase’s deep involvement in OP Stack development makes it a key partner in bringing this vision to life.
Integration with Coinbase Ecosystem
One of Base’s most compelling advantages is its tight integration with Coinbase:
- Access to 100M+ verified Coinbase users
- $130B+ in assets within the Coinbase ecosystem
- Built-in fiat onramps and user-friendly interfaces
- Developer tools to easily launch dApps to a broad audience
For developers, this means being able to build on Base and instantly tap into Coinbase’s massive user base, something no other L2 currently offers at this scale.
What Can You Do on Base?
Despite being relatively new, Base has already attracted a range of dApps and services, including DeFi, NFTs, and social apps.
Some Notable Apps on Base:
- Aerodrome – AMM and liquidity hub built by the Velodrome team
- Seamless Protocol – Lending and borrowing protocol forked from Aave
- Friend.tech – A decentralized social network built on Base
- NFT platforms – Including OpenSea support and custom Base-native collections
Users can also:
- Bridge ETH and tokens from Ethereum
- Trade on decentralized exchanges
- Mint and collect NFTs
- Use Coinbase Wallet and Ledger to interact with Base dApps
Advantages of Base
Base offers a number of benefits over the Ethereum mainnet and even other Layer 2 solutions:
Lower Fees
- Optimistic Rollups reduce fees by orders of magnitude
- Average fees are 10x cheaper than Ethereum (based on historical data)
Speed and Scalability
- Faster transaction finality compared to L1
- High throughput for DeFi, NFTs, and real-time apps
Ethereum-Level Security
- Transactions settle on Ethereum
- Inherits security guarantees from the L1
Developer-Focused
- EVM-compatible
- Gasless transactions and developer APIs
- Supports modern wallet integration (Ledger, MetaMask, Coinbase Wallet)
Coinbase Integration
- Onboarding new users into Web3 directly from Coinbase
- Seamless access to fiat rails and compliance frameworks
Disadvantages and Limitations
Base is promising, but it’s not without challenges:
Centralization Concerns
Currently, Coinbase operates the sequencer, a key component that orders transactions. While this is common for new L2s, it raises questions about decentralization. Coinbase has stated its intention to decentralize this control progressively.
No Native Token (Yet)
Base does not have its own token and uses ETH for gas. While this simplifies the user experience, it also limits token-based incentives and governance opportunities, though that may change as the network evolves.
Bridge Security
Like any Layer 2, Base relies on cross-chain bridges, which can be a target for hacks. Coinbase is working with Optimism on “Pessimism,” a security framework designed to detect suspicious behavior on bridges and improve reliability.
How to Use Base
Getting started with Base is easy, especially for Coinbase users and developers.
Users Can:
- Connect Coinbase Wallet or MetaMask
- Bridge ETH to Base via base.org
- Explore apps in the growing Base ecosystem
- Use Ledger to access Base through Ethereum support
Developers Can:
- Start building on Base testnet using docs.base.org
- Deploy EVM smart contracts without major changes
- Access Coinbase APIs and developer tools
- Launch dApps with built-in fiat onramps and user acquisition tools
The Future of Base
Base is more than just another L2; it’s a strategic move by Coinbase to bring its users into the on-chain economy. With a strong commitment to decentralization, open-source infrastructure, and ecosystem collaboration, Base is well-positioned to become a leading force in the Ethereum scaling landscape.
In the near future, Base is expected to:
- Move toward greater decentralization of its infrastructure
- Support EIP-4844 (proto-danksharding), further reducing fees
- Expand cross-chain functionality with other Superchain networks
- Onboard more DeFi, gaming, NFT, and enterprise apps
Scaling Web3 Adoption
Base represents a critical step toward a scalable, user-friendly, and secure blockchain infrastructure. Backed by Coinbase and built on the battle-tested OP Stack, it merges the best of centralized exchange onboarding with the open, permissionless nature of Ethereum.
As the crypto space matures, solutions like Base will play a key role in bridging the gap between Web2 and Web3, offering a path for mass adoption and real-world utility.
Whether you’re a developer looking for a better way to build dApps, or a user tired of high Ethereum fees, Base offers a powerful platform to go on-chain faster, cheaper, and safer.
