Base, the Layer-2 blockchain solution developed by Coinbase, is transforming the Ethereum network by improving scalability, reducing transaction costs, and offering a developer-friendly platform for decentralized applications (dApps).

Base utilizes rollups, specifically optimistic rollups, to group large sets of transactions off the Ethereum main chain for quicker and more cost-effective processing. These batches are summarized and then sent back to the Ethereum mainnet for finalization.

By reintegrating transactions on the Ethereum mainnet, Base inherits the security and decentralization features of the Ethereum network.

Base is constructed with Optimism’s OP Stack, an open-source toolkit meant for creating scalable, interoperable, and cost-efficient rollups. This shared structure envisions a future interconnected "superchain" of Layer-2 networks.

Impact of Base on Crypto Transactions

Base has significantly increased the efficiency of cryptocurrency transactions. During Coinbase's first-quarter earnings call, CEO Brian Armstrong emphasized these improvements, comparing the evolution of blockchain with Layer-2 solutions to the shift from dial-up to broadband internet. Armstrong stressed the importance of these enhancements for Coinbase's objective of processing average crypto transactions globally in under one second for less than one cent.

Growing Developer Activity and Transaction Volume on Base

In the first quarter of 2024, developer activity on Base saw an eightfold increase, indicating a rising confidence in its capabilities. Recently, Base has handled a higher transaction volume, showcasing its growing popularity among users.