Incubated within Coinbase, Base is among the most popular Ethereum Layer 2 (L2) solutions. Along with the Coinbase Wallet app, Base is designed to provide an accessible gateway to all things onchain, from DeFi to NFTs and beyond. In this guide, we'll explore the basics of Base, how it works, and top projects to try in its ecosystem today.
Key takeaways
- Coinbase launched the Base mainnet in July 2023.
- The L2 was created to help facilitate Phase 4 of Coinbase's Secret Master Plan, which aims to achieve an open financial system that reaches +1B people. It is now the second-largest L2 in the cryptoeconomy, behind only Arbitrum in total value locked (TVL).
- Currently, the average transfer cost on Base is around ~$0.0033 compared to $1.03 on Ethereum, making the L2 over 99% more affordable.
What is Base?
Base is an optimistic rollup L2 developed on the OP Stack, a technology for custom L2 deployments and interoperability among Optimism's Superchain networks. It executes Ethereum-based transactions cheaper and faster than is possible on Ethereum itself.
Since launching one year ago, Base has experienced immediate success – it now boasts over $7.4B in TVL and more than 500k daily active addresses, making it among the most teeming networks in all of crypto.
However, it's important to note that Base is still under development. For example, its fraud proofs system is still in the works. This means that the platform is not yet fully decentralized, though the team is actively working to decentralize as quickly as possible.
How does Base work?
Base serves as an external execution environment where Ethereum transactions are processed offchain. These transactions are then bundled into batches and efficiently submitted to Ethereum.
Unlike other scaling methods, optimistic rollups like Base assume that transactions are valid and rely on fraud proofs to dispute any invalid transactions.
Anyone can challenge the validity of a transaction during the one-week challenge period by submitting a fraud proof. If the challenge is successful, the incorrect transaction is reverted, and the responsible operator is penalized.
Why Base?
Base stands out as a premier Ethereum Layer 2 (L2) solution for a handful of compelling reasons:
- Incubated by Coinbase: Base benefits from the robust backing of Coinbase, one of the most reputable and widely used cryptocurrency exchanges globally. This association not only ensures a high level of security and trust but also integrates Base seamlessly with Coinbase's vast ecosystem, providing easy onramps for users to move assets from Ethereum and other chains.
- Cost Efficiency: One of Base's primary advantages is its cost efficiency. With transaction fees around ~$0.0033 compared to Ethereum's $1.03 today, Base offers a more than 99% reduction in transaction costs. This significant decrease makes Base an attractive option for users and developers looking to minimize expenses while benefiting from Ethereum's robust network.
- Interoperability and EVM Compatibility: Thanks to Base being an Ethereum Virtual Machine (EVM) network, developers can deploy any EVM-compatible codebase there easily, ensuring accessibility with Ethereum's extensive ecosystem. Developers can leverage existing tools and frameworks, making it simpler to port apps to Base without extensive modifications.
- Developer and User-Friendly: Base offers features like Account Abstraction (ERC4337) and simple developer APIs for gasless transactions, enhancing the user experience and simplifying development processes. This makes Base a builder-friendly environment, encouraging innovation and the creation of new apps.
How to invest in Base?
Unlike other major L2s, Base currently doesn't have a native token and hasn't made any official announcements suggesting it will eventually have one. This means that right now, there is no direct way for retail investors to speculate on the network's success.
It remains entirely possible that Base will, in fact, one day launch its own token. Until then, though, investing in tokens launched atop the L2, like $DEGEN and $TYBG, will be the main proxy avenues for getting portfolio exposure to the Base ecosystem.
Top Base projects
The Base app ecosystem has over 360 apps and counting. Some of the top projects to try here currently include:
- 👻 Aave – one of DeFi's top non-custodial liquidity protocols
- 📡 Astaria – a fixed-rate lending protocol that supports ERC-20s and NFTs
- 💳 Blackbird – a loyalty and memberships platform centered around restaurants
- 🎨 Highlight – a do-it-yourself NFT creator suite
- 📝 JokeRace – a platform for onchain contests
- 📢 Mirror – a web3 publishing platform
- 🤝 Nouns Builder – a custom Nounish DAOs deployer
- 🎊 Party – a decentralized coordination protocol and platform
- 🌉 Relay – a rapid fast bridge built by the Reservoir team
- 🔐 Safe – a DIY multi-signature wallet deployer
More about Base
👉 Bankless Base Profile
👉 Hunt Airdrops On Base
👉 Bankless Coinbase Profile