Coinbase’s Base Network to Launch Permissionless Fault Proofs for Decentralization

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As a seasoned researcher who has been immersed in the cryptosphere for over a decade now, I find the upcoming changes to Coinbase Global Inc’s Ethereum Layer 2 Base network particularly intriguing. The permissionless fault-proof solution slated for release on October 30, 2024, promises to significantly enhance the platform’s decentralization and overall security.

Coinbase Global Inc’s Ethereum Layer 2 Base network, listed on NASDAQ as COIN, is gearing up for a more decentralized state. By October 30, 2024, their L2 protocol intends to unveil a permissionless, fault-proof solution. This step is taken to boost security by eliminating the control from a singular authority. This development signifies a notable achievement for the platform and the broader Ethereum (ETH) community.

Understanding Fault Proofs and Its Benefits

The design of Base aims to address Ethereum’s issue with scalability. It accomplishes this by managing transactions outside the primary chain, ensuring Ethereum’s security remains intact. Operating as an optimistic rollup, it bundles numerous transactions into one, thereby alleviating congestion and lowering gas fees on the ETH network. Yet, rollups require a means to verify that off-chain transactions are legitimate and reliable, which is where fault proofs are employed.

In simpler terms, fault-proof systems play a crucial role in the decentralization of Layer 2 networks. These systems are set up to strengthen the verification process. They allow anyone to propose or contest information about the network’s condition without needing permission. If an incorrect claim is made, it can be contested by others using the fault-proof system.

As a crypto investor, I’m thrilled about this development that’s shifting power from centralized entities to the broader community. This means we, the people, now have a say in matters previously controlled by a select few. With a flawless launch, Base is set to minimize its dependence on central authorities, thereby increasing transparency and accountability.

As an analyst, I find it intriguing that this development could set a benchmark for other Layer 2 solutions within the Ethereum network. It’s clear that scaling while preserving decentralization is a key focus for these platforms. Following suit, Optimism, a notable competitor in the space, has declared the deployment of fault-resistant functionality on its mainnet. This move underscores their commitment to innovation and maintaining a competitive edge.

More Improvement to the Base Network

Over the past few months, various enhancements have been implemented to boost the performance of our Base network. Notably, in August, a rapidly expanding L2 solution marked its debut in the on-chain identity market with the launch of “Basenames”.

These Basenames are constructed utilizing the Ethereum Name Service (ENS) framework. This enables users to convert their intricate hexadecimal wallet addresses into more convenient, legible names. It’s worth noting that this name service isn’t a novel concept within the crypto environment; other protocols have also adopted similar systems.

Essentially, it’s like having multiple personalized web addresses (subdomains) linked to your main domain (ENS) in the world of blockchain. A new service called Basenames, as explained by Base, is designed to play a crucial role in this ecosystem. The protocol aims to simplify user interactions within the blockchain environment.

In just its first year, Base has seen rapid expansion and now ranks as the second leading network in the industry according to L2Beat’s leaderboard. Out of the 74 active L2 networks, it holds approximately 18% of the market share, making it a strong contender. Arbitrum One currently leads with an impressive 40% share.

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2024-10-24 12:48