Summary: The article explains Base, Coinbase's new layer-two chain built on Optimism, analyzing how it works, potential opportunities and challenges, and its goal of bringing Coinbase users into web3.
What Base is:
- Layer-two chain developed by Coinbase, built on Optimism.
- Aims to be a web3 gateway for Coinbase's 100M+ users.
How Base works:
- Optimistic rollup chain, initially centralized block production by Coinbase.
- Targets Ethereum developers and Coinbase users.
- Leverages Optimism's tech like lower L2 fees.
Future opportunities and challenges:
- Onboards millions to DeFi, but incurs costs for Coinbase.
- Revenue sharing with Optimism, but no token due to regulation.
- Could be permissioned rollup requiring KYC.
- Significant hurdles before mass adoption.