Coinbase Launches Testnet for its Base Layer-2 Network
- Coinbase has launched the testnet for its own layer-2 network Base, which was designed to be low-cost, open-source, and provide a developer-friendly environment.
- The exchange also revealed it will be joining Optimism as a core developer on the open-source “OP Stack”, which Base was built on top of.
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Cryptocurrency exchange Coinbase has launched the testnet for Base, its own Ethereum layer-2 network that was built using Optimis’s OP Stack, the company said in a blog post on 23 February.
According to the announcement, the Base network will not issue its own token and was designed to act as a bridge for users into the crypto economy, giving them easy and secure to interact with other layer-2 networks such Optimism, and even providing them with access to other layer-1 ecosystems like Solana. Base will also make it easy to build decentralized apps (dApps) with access to Coinbase’s products, users, and tools. Coinbase’s VP of engineering, Will Robinson, said in the blog post:
“Today, we’re excited to announce the testnet launch of Base, an Ethereum Layer 2 (L2) network offering a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “dapps” onchain. Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. In pursuit of this goal, Base will serve as both a home for Coinbase’s onchain products and an open ecosystem where anyone can build.”
Coinbase also revealed that it will be joining Optimism as a core developer on the open-source OP Stack — a developer toolking for compatible blockchain layer-2 networks created by Optimism — which Base was built on top of. Coinbase noted that it joined the OP Stack core dev team to ensure that the Base network will be “fully open source and freely available” to everyone. Altough the network will start off as highly centralized, Coinbase released detailed plans on how Base will be decentralized over time.
The goal of Base is to become an easy-to-use network that will encourage new crypto users to “start on Base, but go everywhere”. In order to attract new developers to Base, Coinbase and Coinbase Ventures will also launch the Base Ecosystem Fund that will provide investments and support early-stage projects that build on Base and meet predetermined criteria.
- Both crypto exchange Coinbase and stablecoin issuer Paxos have stated that they will no longer accept or initiate U.S. dollar payments through Silvergate Bank.
- The two noted that cash transactions for institutional clients will now be carried out through their other banking partners, and that the move had no impact on pound and euro payments.
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- The crypto exchange cited market conditions for its decision to exit the country, and gave users until 16 February to withdraw their assets.
- Coinbase is following in the footsteps of crypto exchange Kraken, which announced it will be ending operations in Japan on 28 December.
- The San Francisco-based crypto exchange is planning to reduce its headcount by 950 employees, and shut down some projects with “lower probability of success”.
- The move was part of its restructuring plan meant to reduce its operational costs by 25% by the end of the second quarter of 2023.