In the rapidly changing landscape of decentralized applications, the major hurdle is to solve the security complexities in the Web3 space. This is where Base Protocol comes in, which has been gaining traction among enterprises and Web 3 developers. The primary goal of the Base Protocol is to make it convenient for its users to take advantage of the full potential of Web3 space without sacrificing security, performance and decentralization.
In this comprehensive guide, we will go through you deeply into the Base Protocol, its main features and benefits.
Overview: Base Protocol
The open-source platform Base Protocol is a developer-friendly layer 2 built on Ethereum blockchain. It leverages the robust security provided by Ethereum to facilitate a smooth and effortless shift from Coinbase, Ethereum L1, and other interoperable blockchains into the dynamic world of Base node deployment.
On the other hand, the token that is developed by the Base Protocol is Base token. The responsibility of this token is to maintain a price pegged that keeps in touch to the total value of the Crypto industry. This unique mechanism ensures that the Base token equals 1:1 trillion when it comes to calculating value.
More than this, Base offers a convenient way for individuals and businesses to engage in speculative activities across the entire crypto industry by using just one token. For instance, if the total market cap of cryptocurrencies reached $800 billion, the value of a Base token would equivalently increase to $0.80.
Features of Base Protocol
Base Protocol is a innovative Layer 2 scaling solution with its unique and outstanding features:
High transaction speed
This is Layer 2 (L2) Protocol specifically developed to enhance the scalability of Ethereum’s base layer. By enabling transaction processing off-chain, they effectively reduce computational burden on the main Ethereum chain, resulting in notable advancements of transaction processing speed.
Account Abstraction (ERC4337)
Base Protocol incorporates the concept of account abstraction based on the ERC4337 standard. This feature allows users to interact with decentralized applications (DApps) and smart contracts using a single account, simplifying the user experience and reducing the complexity of managing multiple addresses.
Easy-to-use Developer APIs
Base Protocol provides a set of developer APIs that simplify the process for developers to connect their applications with the protocol. These APIs offer a streamlined way to access and interact with the Protocol’s functionalities, enabling developers to build innovative applications and services on top of Base Protocol.
Smart Contract
Base Protocol utilizes smart contracts, which have no requirement of third-party to process transactions. On Base Protocol, smart contracts have the ability to automate a wide range of processes, such as investment management and token issuance.
Benefits of Base Protocol
Decentralized Finance (DeFi)
The Base Protocol can integrate with DeFi applications, enabling users to access a variety of financial services and CoinBase’s products within the decentralized ecosystem. This integration opens up possibilities for lending, borrowing, and other DeFi activities using the stablecoin.
Increased Security & Highly Scalable
Layer 2 (L2) solution Base Protocol is hosted on the Ethereum blockchain to make it more secure and scalable, as mentioned above. By using this Protocol, users can benefit from increased security and scalability for decentralized applications (dApps).
Transparency and innovation
The Base Protocol leverages the advantages of being open-source, which brings numerous benefits to its users and the broader community. By adopting an open-source approach, Base encourages transparency, collaboration, and innovation. Moreover, the open-source nature of the Base Protocol promotes interoperability and compatibility with other projects.
Low Gas Fees
Base offers a low gas fees solution that grants you complete access to the EVM ecosystem. Unlock the power of Ethereum functionalities such as Account Abstraction (ERC4337), while enjoying the low gas fees that will save you on your transaction costs.
Let’s Wrap It Up
Base will serve as the home for Coinbase’s on chain products and an open ecosystem for anyone building Ethereum scaling solutions and dapps. It will be positioned as the next step towards their mission of increasing economic freedom in the world. The goal is for Base to become a seamless gateway for Coinbase users to access the broader cryptoeconomy, making web3 more accessible to a larger number of people.
Coinbase recognizes that the growth of the cryptoeconomy requires decentralization and collaboration, rather than being achieved solely by one entity or company. In order to ensure the long-term success of Base and the scaling of Ethereum, they are actively working with OP Labs and the Optimism Collective on a decentralized plan. Their vision is to create a robust developer ecosystem consisting of interoperable L2s and rollups. This collaborative effort aims to onboard the next billion users into web3 and propel the widespread adoption of Ethereum scaling solutions.