Coinbase's Layer-2 Network, Base, Skips Token Trend for Faster Transactions

In a surprising move, Coinbase's CEO, Brian Armstrong, announces plans to expand the layer-2 network, Base, without introducing a native token. Despite the industry norm, Base has already soared to a $500 million Total Value Locked (TVL), making it the third-largest layer-2 network.

Base's Unconventional Rise: $500M TVL

In an exclusive Decrypt interview, Armstrong highlights Base's rapid growth, emphasizing its interoperability and integration with various applications. Unlike its counterparts, Coinbase chooses not to create a token for Base, focusing instead on making it stable and widely accessible beyond the Coinbase ecosystem.

Coinbase's Push for Faster, Cheaper Transactions

Coinbase aims for faster, cheaper transactions on Base, targeting under one second and one cent on average. Armstrong underscores the company's commitment to prioritizing layer-2 usage, envisioning a shift from occasional to routine utilization. Improvements to Base are on the horizon, with plans to make layer-2 the default on the platform.

Armstrong's Analogy and Industry Consolidation

Drawing an analogy between layer-2 adoption and the internet's transition from dial-up to broadband, Armstrong stresses the need for industry consolidation around a few efficient layer-2 networks. Despite the industry's interest, he emphasizes the importance of broader adoption to drive progress in the cryptocurrency space.

Coinbase's layer-2 network, Base, defies industry norms by opting out of creating a native token. Despite this, Base has achieved a remarkable $500 million TVL, positioning itself as the third-largest layer-2 network. Coinbase's focus is on faster, cheaper transactions, with plans to make layer-2 the default on its platform. Armstrong likens this transition to the internet's evolution, advocating for industry consolidation for greater efficiency. While Base's rise is unconventional, its success signals a potential shift in the layer-2 landscape.

In the crypto community's evolving landscape, Coinbase's strategic decision to forgo a native token for Base prompts curiosity. Time will reveal if this unconventional approach proves beneficial or challenges the prevailing industry trends.