Author: Szymon Białas Source: X, Ulam Labs Translation: Shan Ouba, Golden Finance

Base is a new layer 2 blockchain solution that aims to enhance the Ethereum network by providing a scalable, efficient, and cost-effective environment for decentralized applications (dApps). Developed and supported by Coinbase, one of the largest and most trusted cryptocurrency exchanges, Base has quickly attracted the attention of the blockchain community.

Coinbase's involvement in Base is an important factor in increasing the credibility and resources of the project. By leveraging Coinbase's extensive infrastructure and user base, Base aims to provide a seamless experience for developers and users. This strong support has pushed Base to a leading position in the market.

Base ranks second in total value locked (TVL) among Layer 2 solutions, with nearly 30% of the market share and a TVL of approximately $8.05 billion (according to CoinMarketCap). It also has the highest transactions per second (TPS) rate, averaging 30.36 TPS, making it the fastest Layer 2 network. These achievements highlight Base's potential to become a dominant player in the blockchain ecosystem.

This article will explore the story behind Base, its technical foundation, and how it compares to other Layer 2 solutions. We will also look at some of the notable dApps on Base and why it is an ideal developer platform. Finally, we will discuss the future of Base and its impact on the wider blockchain world.

The Story Behind Base

Base was developed to meet the growing demand for more scalable and efficient blockchain solutions. As Ethereum grew in popularity, issues related to network congestion and high gas fees also increased. Recognizing these challenges, Coinbase, a prominent player in the cryptocurrency industry, decided to step in with a solution that would mitigate these issues and enhance the overall user experience. Coinbase launched the Base project with a clear vision: to create a layer 2 solution that would provide the speed and efficiency required for mainstream adoption of decentralized applications. By building on Ethereum, Base leverages the security and decentralization of the Ethereum mainnet while providing the scalability and low fees of a layer 2 solution. Base’s development was made possible by Coinbase’s extensive expertise in the cryptocurrency space. Coinbase provided a wealth of resources, including funding, technical expertise, and strategic guidance. This support was critical to ensuring that Base would meet the high standards required for a successful blockchain solution. The strategic goals behind the launch of Base were multifaceted. First, Coinbase aims to create a platform that can support a variety of dApps, from DeFi projects to NFT markets, by providing fast and cheap transactions. Second, Base is designed to be compatible with the EVM, allowing developers to easily migrate their existing Ethereum-based projects to Base without major modifications. This compatibility ensures a seamless transition and encourages wider adoption.

Base's development is driven by a clear vision to solve Ethereum's scalability issues and provide a powerful platform for decentralized applications. With the strong support and strategic support of Coinbase, Base is fully capable of achieving its goals and making a significant impact in the blockchain space.

Base vs. Other Layer 2 Solutions

When comparing Layer 2 solutions, it is important to consider several key metrics: Total Value Locked (TVL), Transactions Per Second (TPS), Cost Efficiency, and Strength of Ecosystem and Adoption. Base, powered by Coinbase, stands out in these areas, offering significant advantages over other top Layer 2 solutions such as Arbitrum, Optimism, and Polygon.

Base Network Use Cases

Base is designed to support a wide range of applications, making it a versatile platform for a wide range of use cases. Here are some of the most popular applications and real-world examples that showcase the power of the Base network:

Top Applications and Use Cases

1. Decentralized Finance (DeFi) - DeFi applications have flourished on Base, thanks to its high throughput and low transaction fees. Projects such as decentralized exchanges (DEXs), lending platforms, and stablecoins have benefited greatly from the efficient and cost-effective transactions provided by Base.

2. Non-Fungible Tokens (NFTs) - The NFT market is booming, and Base provides an ideal platform for creating, buying, and selling NFTs. Its scalability ensures that users can mint and trade NFTs without facing high fees or network congestion.

3. Games - Blockchain-based games often require a large number of transactions, and Base's high TPS makes it an excellent choice for these applications. Games built on Base can provide seamless and immersive experiences without the latency and high costs associated with Layer 1 networks.

4. Supply Chain Management - Base's ability to process large volumes of transactions quickly and cheaply makes it ideal for supply chain applications. Companies can track products in real time, ensuring transparency and efficiency across the supply chain.

Real Examples of Successful Projects on Base

Base has attracted many well-known projects in the blockchain space to integrate its high-performance and cost-effective solutions to enhance their products. Here are some notable examples:

1. DeFi Protocols

• SushiSwap: A popular decentralized exchange (DEX) that has integrated with Base to provide high-speed transactions and minimal fees. This integration enables users to quickly and efficiently exchange a variety of cryptocurrencies, taking advantage of Base's scalability.

• Uniswap: Another leading DEX, Uniswap, uses Base to increase transaction speeds and reduce costs, allowing users to trade tokens more conveniently and efficiently.

NFT Marketplace

• OpenSea: The largest NFT marketplace, OpenSea, has integrated Base to facilitate the creation, purchase, and sale of digital artwork and collectibles. This integration reduces transaction costs and enhances the user experience by providing faster processing times.

• SeamlessFi: SeamlessFi is a platform focused on NFT lending, which uses Base to provide low-cost, efficient transactions, allowing users to more effectively utilize their digital assets.

Liquidity Solutions

• Aave: Aave, a leading liquidity protocol that allows users to lend and borrow assets, has integrated with Base to benefit from its low fees and high transaction speeds. This makes DeFi lending more cost-effective and efficient.

AerodromeFi: A liquidity provision platform on Base that leverages Base’s low transaction fees and scalability to provide users with the ability to earn rewards by providing liquidity to various pools.

Supply Chain Solutions

• BaseTrack: A supply chain management solution that leverages Base to provide real-time tracking of shipments. Companies can monitor their products throughout the supply chain, ensuring transparency and reducing the risk of fraud.

• SupplyBase: An application that allows businesses to manage their supply chains more efficiently by leveraging Base’s low transaction fees and fast processing times.

Through integrations with well-known projects such as SushiSwap, Uniswap, OpenSea, and Aave, Base has demonstrated its ability to enhance the functionality and efficiency of a wide range of blockchain applications. These integrations highlight Base’s strengths in scalability, cost-effectiveness, and ease of use, making it an attractive platform for developers and users alike.

Base’s Strengths in Supporting Various Types of dApps

Base’s strengths lie in its ability to provide:

- Scalability: With its high TPS, Base can process a large number of transactions simultaneously, making it ideal for applications that require fast processing.

-Low Transaction Fees: Base’s low-cost transactions attract developers and users looking for cost-effective solutions.

-EVM Compatibility: Base’s compatibility with the Ethereum Virtual Machine (EVM) ensures that developers can easily migrate their existing Ethereum dApps to Base with minimal adjustments.

-Strong Infrastructure: Backed by Coinbase, Base has strong infrastructure and security, providing a reliable platform for dApp development.

Friend.tech in Detail

One ​​of the outstanding dApps that initially attracted widespread attention on Base is Friend.tech, a social networking platform that uses blockchain technology to enhance user interaction and security.

Features:

• Decentralized Social Network: Friend.tech allows users to create profiles, post updates, and interact with other users in a decentralized manner. This ensures that user data is not controlled by a single entity, thereby enhancing privacy and security.

• Tokenized Interactions: Users can earn tokens for activities on the platform, such as posting content, interacting with others, and contributing to the community. These tokens can be traded within the platform or used for various services.

• Smart Contracts: Friend.tech uses smart contracts to automate interactions and ensure transparency. For example, content creators can set up smart contracts to receive tips or payment for work.

User Base:

Friend.tech's user base has expanded rapidly, attracting a diverse group of people from social media enthusiasts to blockchain advocates. Its user-friendly interface and engaging features make it accessible to both crypto newbies and experienced users. At its peak late last year, the platform saw a massive influx of users and activity.

Impact on the Base Network:

• Increased Adoption: Friend.tech has significantly boosted the adoption of the Base network by attracting users from diverse backgrounds. This influx of users has helped demonstrate Base’s capabilities in supporting social networking applications.

• Enhanced Ecosystem: By providing a platform for social interaction, Friend.tech adds a new dimension to the Base ecosystem, demonstrating its versatility beyond traditional DeFi and NFT applications.

• Economic Activity: The tokenized nature of Friend.tech has spurred economic activity on the Base network, with users able to trade tokens and take advantage of Base’s low-fee environment.

While Friend.tech’s popularity surged, its activity has since declined. However, it remains a notable example of Base’s ability to support innovative and diverse applications. Its initial success highlights Base’s potential to attract a diverse range of dApps, drive adoption, and expand the network’s ecosystem.

Why Base is a great place for developers

Base provides an attractive environment for developers looking to build on a scalable, efficient, and user-friendly blockchain platform. Here are the main reasons why Base is a great place for developers:

EVM Compatibility

One ​​of Base’s most notable advantages is its compatibility with the Ethereum Virtual Machine (EVM). This ensures that developers can easily migrate existing Ethereum-based projects to Base with only minor adjustments. EVM compatibility enables seamless interoperability, allowing developers to leverage Ethereum’s existing extensive ecosystem of tools, libraries, and infrastructure. This compatibility reduces the friction associated with porting dApps to a new platform and allows for faster deployment and wider adoption.

Low Gas Fees

Base’s low transaction fees are a major attraction for developers and users alike. Ethereum’s high gas fees have been a persistent problem, often making it expensive to deploy and interact with dApps. Base solves this problem by offering significantly reduced fees, which means cost savings for developers and a more affordable experience for users. Lower fees are particularly beneficial for projects that require frequent transactions, such as DeFi protocols and gaming applications.

Scalability

This is a critical factor for any blockchain platform, and Base excels in this area by providing high throughput and fast transaction processing. As a Layer 2 solution, Base can handle a large number of transactions per second (TPS), alleviating the congestion issues that plague Layer 1 networks such as Ethereum. This scalability ensures that dApps built on Base provide a smooth and responsive user experience even during periods of high demand. Developers can build complex applications with confidence, knowing that the underlying network can meet their needs.

Access to the Coinbase Ecosystem

Base is developed and supported by Coinbase, which offers unique advantages that other Layer 2 solutions may not have. Coinbase's extensive ecosystem provides developers with a large and active user base, which can drive adoption for their dApps. Additionally, the trust and credibility of Coinbase can attract more users and investors to projects built on Base. Integration with Coinbase's services and infrastructure also facilitates smoother onboarding and potentially expanded coverage, bridging the gap between traditional finance and the crypto world.

The Future of Base

As Base continues to establish itself as a leading layer 2 solution, its future looks bright with several exciting developments on the horizon. Base's roadmap includes key upgrades and enhancements designed to further improve its scalability, security, and user experience. Upcoming developments such as advanced rollup technology, enhanced interoperability capabilities, and expanded support for decentralized applications will solidify Base's position in the blockchain ecosystem.

The potential impact of Base on the blockchain ecosystem is enormous. By addressing the scalability and cost issues that currently limit the wider adoption of blockchain technology, Base can foster the growth of new and existing projects across a variety of sectors. The network’s high transaction speeds and low fees make it an attractive platform for developers and users alike, fostering innovation and driving adoption of decentralized applications.

Base’s growth and adoption prospects are positive. With the support of Coinbase and its strong technical foundation, Base is well-positioned to attract a diverse range of projects and developers. As more dApps migrate to Base and new applications are built, the network’s ecosystem will continue to expand, creating a positive feedback loop that encourages further adoption and innovation.  

Conclusion

From strong support from Coinbase to its impressive TVL and TPS metrics, Base offers a robust and scalable platform for decentralized applications.  

Base stands out among Layer 2 solutions for its EVM compatibility, low gas fees, scalability, and integration with the Coinbase ecosystem. These features not only provide technical advantages, but also enhance trust and accessibility, making it a top choice for developers and users.

Whether you are a developer looking for a scalable and cost-effective platform, or a user looking for a seamless blockchain experience, Base provides solutions to meet these needs.