Brian Armstrong, the CEO of Coinbase, has chosen not to introduce a native currency for Base, the company’s layer-2 network. This declaration provides clarification on earlier uncertainties and establishes a clear path for the network’s growth.
Armstrong made it clear that Coinbase is not launching a Base network token in an interview with Decrypt. This announcement dispels earlier rumors that were sparked by Paul Grewal, the chief legal officer of Coinbase. Grewal had not ruled out the concept of a future coin, but Armstrong’s recent remarks—which have been confirmed by a Coinbase representative—finally put an end to such ideas.
Since its August launch, Base has emerged as a major player in the layer-2 network space, ranking third in terms of total value locked with an astounding $500 million. Based on the Ethereum Optimism stack, Base has garnered significant user interest, with around a million wallet interactions recorded in the first few months following its inception.
Armstrong disclosed a goal to reduce transaction costs and timeframes to less than one cent and one second. Coinbase is improving Base and integrating more quick layer-1 technologies, such as Solana and Bitcoin’s Lightning Network, in order to accomplish this. There is a concentrated attempt to raise this percentage considerably, as layer-2 solutions are currently only utilized in 7% of Coinbase transactions.
For the cryptocurrency business, the move into layer-2 networks is a significant shift, comparable to the internet’s progression from dial-up to broadband. Armstrong agreed that these networks have the ability to bring about cutting-edge applications and enhance customer satisfaction. Additionally, he supported the inevitable concentration of power on major layer-2 platforms to guarantee efficiency in the cryptocurrency space.