Bankless: Understanding Base's basic narrative in one article

Author: David C, Bankless; Translator: Deng Tong, Golden Finance

Coinbase's breakthrough L2 Base has quickly become one of the most prominent narratives on the chain in this cycle, consolidating itself as the most innovative on Ethereum.

The rise and continued development of Base has increasingly become a hot investment topic that is difficult to ignore.

Launched in July 2023, Base is built on the OP Stack, allowing cheaper and faster Ethereum transactions, which is a key feature that has driven its success. Since its inception, Base has developed a vibrant ecosystem full of DeFi, NFTs, and consumer-friendly applications, which puts it at the forefront of all on-chain trends. It is about to launch a stablecoin service in cooperation with Stripe, becoming the center of the launch of Layer 3 solutions, and has been at the center of liquidity rotation, constantly triggering calls for "Base Season". It even surpasses Optimism in on-chain TVL value!

In this article, we’ll examine what makes Base stand out from other L2s, how it draws power from Coinbase, and the rumored token airdrop—all of which together make Base a can’t-miss star on the chain. Let’s get started!

What makes Base so special?

Base stands out from other L2 chains with its deep integration with the Coinbase ecosystem and reputation as a consumer chain.

Base’s integration with Coinbase brings the exchange’s massive consumer base closer to the chain and provides the foundation for building a strong community of builders and users.

Ecosystem initiatives like Onchain Summer help to attract attention from developers and creators, making the chain an attractive place for users to gather. Base continues to demonstrate its commitment to creators and foster an atmosphere of experimentation, which has resulted in many unique events on the chain, whether it’s closed-door talks at FriendTech or beating the competition in WorldPVP.

In addition, Coinbase provides a wealth of tools for blockchain that make life on the chain more approachable, most notably their recently released Smart Wallet, which simplifies the login process by abstracting away lengthy recovery phrases and allows dApps to pay gas fees on behalf of users.

These innovations combine to form a supportive ecosystem that rewards developers who try new things, thereby keeping users engaged and creating an atmosphere of casual consumption - a rare occurrence in the life-or-death space of DeFi.

Can Coinbase push Base to the top?

Coinbase's support brings several key advantages that set Base up for success.

• Trust:As one of the most recognized and trusted brands in the industry, Coinbase lends credibility to the chain, aiming to assure potential users that the chain will operate with integrity. Not only is this critical to attracting Coinbase’s 110 million users, providing them with a friendly and safe place to venture on-chain, but it also allows Base to forge important partnerships, such as its recent partnership with Stripe.

• Partnerships:Base’s partnerships with financial services giants will have a twofold effect, making L2 a payments highway, potentially competing with Solana, which has benefited from a high volume of stablecoin transactions this cycle, and signaling to other Web2 companies that Base is a reliable place for payments. Having an established global presence gives Base the financial muscle to continue to innovate, and provide their community with a variety of services such as cloud access, institutional gateways, and an all-in-one developer platform.

• Marketing:Their fund is also a powerful marketing machine, bringing Base and the industry closer to the public with the backing of a company that regularly airs on TV shows.

• Political Power:Finally, no company has been as proactive as Coinbase in developing relationships with regulators to support clear and productive regulation. From funding initiatives like "Back Crypto" to regular meetings with senators and congressmen, the exchange continues to advocate on behalf of the industry. Although they themselves are currently subject to litigation, the reputation they gain from this behavior can act as a bulwark when Base has to deal with legal complexities. In addition, it means that the blockchain will be more secure and compliant, which is an additional protection measure if problems arise.

All in all, Coinbase's partnership with Base not only provides credibility and financial support, but also enhances its potential in major partnerships, regulatory support, and broad market coverage, making it a powerful player on the chain.

What about Base tokens?

Despite its rapid growth and success, Base is still in the development stage.

The platform's anti-fraud system is still under development, which means that Base is not yet fully decentralized. However, the team is actively working on decentralization.

Unlike other major L2s, Base currently has no native token and has not made any official announcements indicating that it will eventually have one. However, many still believe that the blockchain will find a way to launch a product. Moreover, given that the last creators were rewarded on superchains including Base, Optimism’s next retroactive airdrop may bring more direct incentives.

Until then, investing in tokens launched on top of L2s can provide a proxy way to gain exposure to the Base ecosystem.

The Case for Base

Base has grown into a significant on-chain player in just one year, thanks to its integration with Coinbase, its active developer and user ecosystem, and its recent major partnership with Stripe.

Coinbase’s support not only provides Base with the credibility, financial strength, and regulatory support that are critical to its growth and stability, but it also enables it to run programs such as Onchain Summer, which rewards on-chain activities and experiments, ensuring that there is always something working on the network.

As if that weren’t enough, the potential for Coinbase to launch future tokens also adds incentive to operate on Base, an experience that is increasingly streamlined thanks to features like Smart Wallet.

As Base expands and innovates, its user-centric approach, advanced technology and strategic partnerships, and the backing of Coinbase position it to be one of the premier on-chain pioneers.