25 Apr, 24

What is the Base Blockchain? The Coinbase Layer 2

coinbase base blockchain banner


The Base blockchain, introduced by Coinbase, represents a significant development in the realm of cryptocurrency and blockchain technology. It is a layer-2 solution built on Ethereum, utilizing Optimism’s OP Stack to enhance transaction speeds and reduce costs, while maintaining the security benefits of the Ethereum mainnet.

What is Layer 2 and Why is Base Important?

Layer 2 solutions are designed to scale blockchain applications by handling transactions off the main Ethereum chain (Layer 1) and only settling final states to it. This approach helps in managing the congestion and high transaction fees associated with Layer 1. Base, specifically, aims to make building decentralized apps (dApps) more accessible and efficient, thereby attracting more users and developers to the crypto-economy.

The Technology Behind Base

Base operates using the Optimistic Rollup technology, which bundles multiple transactions into a single batch, executing them off-chain and later confirming them on the Ethereum mainnet. This not only speeds up transactions but also significantly reduces their cost. Additionally, Base supports full Ethereum Virtual Machine (EVM) compatibility, meaning developers can deploy Ethereum dApps on Base without major modifications​.

Features and Benefits

One of Base’s standout features is its developer-friendly environment. The platform offers tools such as gasless transactions and easy-to-use APIs that facilitate account abstraction and the building of multichain applications​​. Base is also deeply integrated with Coinbase, providing a potential massive user base for developers. Moreover, it supports interoperability with other blockchains, enhancing its utility in a multi-chain future​.

Current Status and Future Plans

As of now, Base is in its developmental stages, with its testnet already live and plans for a mainnet launch underway. The project aims to transition from a Coinbase-incubated platform to a fully decentralized ecosystem, progressing through different stages of rollup implementations by 2024​. Coinbase and Optimism also envision Base as part of a larger ‘Superchain’, which would interconnect various Layer 2 solutions under one umbrella​.


Base blockchain is poised to be a major player in the Layer 2 space, with its strategic integration with Coinbase and Optimism, user-centric features, and robust technological foundation. It holds the potential to drive broader adoption of decentralized applications and significantly impact the future landscape of the crypto-economy.


  1. What is Layer 2 in blockchain?
    • Layer 2 refers to a secondary framework or protocol that is built atop an existing blockchain system. The main goal of Layer 2 technologies is to solve the transaction speed and scaling issues facing major cryptocurrency networks.
  2. How does Base blockchain reduce transaction costs?
    • Base reduces transaction costs by processing transactions off-chain in batches, thus spreading out the computational costs over many transactions, which lowers the overall cost per transaction​.
  3. Is Base blockchain open to all developers?
    • Yes, Base is open-source and aims to be decentralized and permissionless, welcoming developers from various ecosystems to build and innovate on its platform​.
  4. Can Base blockchain support NFTs?
    • Yes, Base is fully EVM-compatible and supports NFTs. It integrates with major NFT marketplaces like OpenSea, allowing for minting and trading NFTs at lower costs​.
  5. What are the future plans for Base blockchain?
    • Base plans to further integrate with the Optimism ecosystem to enhance decentralization and scalability. The development roadmap includes transitioning through various stages of rollup solutions and contributing to a broader ‘Superchain’ network​.

About Zerocap

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com


This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

Like this article? Share
Latest Insights

25 Apr, 24

What is the CBDC Anti-Surveillance State Act?

On May 23, 2024, the U.S. House of Representatives passed the CBDC Anti-Surveillance State Act. This legislation, introduced by Congressman Tom Emmer, aims to prevent

25 Apr, 24

Blockchain Fintech Solutions: Bridging the Ecosystems

Blockchain technology is revolutionizing the financial technology (fintech) landscape by providing innovative solutions to longstanding challenges. As the demand for more secure, transparent, and efficient

25 Apr, 24

How is Bankrupt FTX Paying Back Its Customers?

FTX, once a major player in the cryptocurrency exchange market, filed for bankruptcy in November 2022 following revelations of significant mismanagement and fraudulent activities. The

Receive Our Insights

Subscribe to receive our publications in newsletter format — the best way to stay informed about crypto asset market trends and topics.

Want to see how bitcoin and other digital assets fit into your portfolio?

Contact Us
Ready to sign up?
Create an Account