What Is Base? The Ethereum Layer-2 Network Launched by Coinbase

This guide will provide an overview of Base, one of the leading Layer 2 chains, which is compatible with the Ethereum ￰0￱ network uses the Optimistic Rollups technology, which bundles transactions off-chain and submits them to ￰1￱ Network Overview What Is Base in Simple Terms Base is a network that secures transactions using Ethereum’s ￰2￱ network operates as a second layer on top of Ethereum and uses the Optimistic Rollups technology, meaning all proposed transactions are considered ￰3￱ then posts the transactions on the next Ethereum ￰4￱ Coinbase Launched Its Own Layer-2 Coinbase has shared its intention to create Base as initially an access point with lower ￰5￱ company wanted to bring mass adoption with fun and accessible ￰6￱ was used as a venue to bring on-chain summer, a period of light-hearted meme trading and NFT ￰7￱ network used that period to test its capacity, onboard users, and establish its presence among other Layer 2 chains.

Base’s Role in the Ethereum Ecosystem Base’s main role lies in Ethereum Layer 2 ￰8￱ launch of Base arrived after Ethereum had a period of extremely high ￰9￱ solved that problem by carrying some of the traffic, inviting top apps to build new versions for the Layer 2 ￰10￱ Base Works Built on the OP Stack (Optimism Technology) Base is built using components of the OP Stack, a framework by the Optimism ￰11￱ makes Base compatible with other similar chains, as cross-chain operations are one of the main goals of ￰12￱ OP Stack makes Base a part of the Optimism Superchain, helping Ethereum handle more transactions while offering niche services for each new L2 ￰13￱ Through Ethereum Mainnet Settlement Base offers Ethereum L2 scaling by accepting much more transactions than a usual Ethereum ￰14￱ transactions are then batched and rolled up, using off-chain ￰15￱ allows for processing hundrends of thousands of ￰16￱ transactions are then cryptographically processed to derive a Merkle root, ensuring the record is ￰17￱ Merkle root is a unique number, which is then published as part of an Ethereum ￰18￱ ensures the record can be verified for tampering, and ensures that no parties on Base will change their ￰19￱ achieve this record, Base uses blobs, paying daily fees for posting on ￰20￱ fees paid to Ethereum vary based on general ￰21￱ Benefits (Lower Fees, Faster Transactions) Because Base can batch more transactions off-chain, while storing only the data from a single Merkle root, transaction fees are extremely ￰22￱ are also instant, though there is some waiting time until they are final on Ethereum.

However, most of the data processing and data transfers are not stored on the ￰23￱ produces a block every two seconds, meaning users have no sense of delay or long waiting times for ￰24￱ and Advantages of Base Coinbase Integration (Wallets, Exchange, Onboarding) Using Base is integrated with other Coinbase features, for both end users and ￰25￱ can create Base accounts through Smart Wallet features, storing a secure identity and access to all Base services. However, a Base identity does not replace a full-KYC Coinbase ￰26￱ user of the Coinbase smart wallet also has a Base account by ￰27￱ wallet can hold all assets on the Base chain, and grant access to decentralized exchanges (DEXs) and other apps.

Developer-Friendly Infrastructure One of the goals of Coinbase is to encourage app ￰28￱ that reason, the Base Account SDK is available to developers for integrated ￰29￱ is compatible with Ethereum, making it user-friendly for developers who use the Solidity programming ￰30￱ products are also integrated with Coinbase’s features and ￰31￱ also have access to detailed documentation and the Base Ecosystem Fund, which supports early-stage projects. Open-Source, Permissionless Network Base offers open-source code to help expand the decentralized ￰32￱ resources for Base builders are freely available, with ready-made components for some of the most common tasks in decentralized applications (dApps).

Base provides general payment components, building blocks, and trading ￰33￱ of the “Superchain” Vision Base is inherently compatible with the Superchain ￰34￱ Superchain encompasses other Optimistic Rollup networks, where Base aims to serve as a central hub and ￰35￱ Superchain is a system of shared protocols and separately developed modules, easily adaptable to the requirements of different ￰36￱ is thus opening channels for communication between chains, sharing resources, routing, trading, and ￰37￱ vs Other Ethereum Layer-2s Base vs Optimism (Partnership and Shared Tech) Both Base and Optimism are optimistic rollup ￰38￱ two chains have differences that make them specialized for their niche ￰39￱ is optimized to handle a higher number of transactions per second (TPS), while Optimism handles 200 ￰40￱ chains produce a block in two seconds, though Base has around 20% faster finality for its ￰41￱ other parameters of the networks are ￰42￱ is partnering with Optimism on ￰43￱ will contribute 2.5% of its sequencer revenue or 15% of its net profits, in exchange for 118M OP tokens unlocked over a few ￰44￱ vs Arbitrum (Differences in Ecosystem Growth) Base and Arbitrum have different growth rates, following a different approach to launching and user ￰45￱ was among the first L2, relying on airdrop ￰46￱ launch of Arbitrum still required significant fees to be paid to Ethereum, which affected the chain’s growth ￰47￱ still accrued value and turned into one of the leading hubs for ￰48￱ grew its ecosystem through NFTs and memecoins, later expanding with stablecoins and its own versions of ￰49￱ of 2025, Arbitrum and Base are not competing directly, as each one hosts its own niche ￰50￱ vs zk-Rollups (ZKSync, StarkNet) Base uses Optimistic Rollups, meaning all transactions are presumed valid.

Then, validators or the sequencer monitors the transactions for disparities. Zero-knowledge rollups take a different approach, using a validity proof that the transactions are real and valid. ZK-rollups require a complex mathematical proof and are more computationally expensive. Hence, Base has chosen the path of Optimistic Rollups with sequencer verification, to offer the fastest and cheapest way possible to scale ￰51￱ and Adoption dApps Building on Base (DeFi, NFTs, Gaming) Base allows for the creation of many types of ￰52￱ chain started its adoption with NFTs linked to each user’s Base identity.

Later, the chain added DeFi apps, both multi-chain versions and native ￰53￱ of October 2025, Base carried 1.74M weekly active users, with up to 30% week-on-week growth, based on DappRadar ￰54￱ User Funnel (Fiat → Base Onboarding) All users of Coinbase Smart Wallets have a Base ￰55￱ wallet offers Coinbase’s usual fiat on-ramp, which can also be integrated with other Base ￰56￱ fiat on-ramp directs users to USDC ownership, the most widely used stablecoin on ￰57￱ transfers are virtually free for Base ￰58￱ Coinbase infrastructure thus onboards new users and adds fresh liquidity to the Base ￰59￱ and Developer Grants Base grows its ecosystem through the Base Ecosystem Grants for new ￰60￱ are also additional resources for developers, boosting knowledge, visibility, marketing, and ￰61￱ funding comes from the Base Builder Reward, as well as from the Paymaster Gas Credits ￰62￱ also attempts to keep an open stack, partnering with other platforms and tool ￰63￱ chain partnered with Aerodrome Finance, Animoca Brands, Alchemy, and other projects for specific tools or Web3 ￰64￱ is a partner with the Optimism chain, one of the main Layer 2 venues for DeFi and fast on-chain ￰65￱ and Criticisms of Base Centralization Concerns (Coinbase’s Influence) While Coinbase offers a strong selection of services, both for fiat and crypto, one of the criticisms of Base is that the chain is too tied up with the Coinbase ￰66￱ chain predominantly encourages the usage of USDC , a stablecoin which can be frozen or ￰67￱ influence of Coinbase may discourage some app builders from attempting to use Base as their main ￰68￱ is considered a Stage 1 chain, allowing for sequencer failure.

However, Base still operates with a centralized sequencer that levies fees for ordering the ￰69￱ defends its position in that the sequencer only orders approved transactions, while the actual on-chain content is decided by other apps and smart contracts. Nevertheless, the sequencer also allows Base to retain a significant part of fees for deploying the sequencer, while paying a minimal amount to ￰70￱ Among L2s L2 chains are numerous and diverse, with over 120 active ￰71￱ chains are competing for users, as well as for liquidity ￰72￱ is closely competing with Arbitrum, which is still the leader in stablecoin ￰73￱ main focus of competition between L2 chains is transactions cost, as well as available apps.

L2 chains host versions of lending protocols, each with a slightly higher yield, offering opportunities for ￰74￱ partners with some networks like Optimism, while others try to build an independent user ￰75￱ chain also competes for Solidity developers, though some of the apps are deployed on multiple ￰76￱ activity on L2 is not harmful to Base, and may in fact grow exposure to all chains. L2 chains grab nearly 14% of economic activity in the Ethereum ecosystem, of which Base takes up its own ￰77￱ and Compliance Risks Base shares Coinbase’s culture of remaining as close to compliance as ￰78￱ chain encourages the usage of USDC, which is MiCA compliant in the EU and is covered by the Genius Bill in the ￰79￱ is still a no-KYC chain, with the exception of specific Coinbase tasks, which may still require user ￰80￱ Future of Base in 2025 and Beyond Growth of the Superchain Ecosystem The Superchain ecosystem has grown to carry nearly 700K smart contracts, locking in $5.5B in revenues, based on data from Dune ￰81￱ chain is the main driver of growth of the Superchain, followed by ￰82￱ time, the presence of Base solidified and even displaced smaller ￰83￱ entire L2 ecosystem is constantly changing, as networks have different opportunities and ￰84￱ 2025, the state of the ecosystem showed most contracts were carried by Optimism, but most on-chain activity happened on ￰85￱ for Mass Adoption via Coinbase’s User Base Base launched at a time when blockchain projects started seeking mass adoption, with a strong retail user ￰86￱ Base chain popularization started with mass minting of NFTs, followed by a summer of incentives and fun ￰87￱ the years, Base chain evolved into a financial hub, a venue for payments, and an ecosystem for app-building ￰88￱ in Ethereum’s Scaling Roadmap Base is one of the most successful networks to take up some of the excess liquidity on ￰89￱ Ethereum roadmap includes both L1 and L2 efforts with the goal of achieving up to 100K transactions per second (TPS).

Base for now carries around 1,500 TPS. L2 and especially optimistic rollups achieved unexpected scaling, when the Ethereum chain initially planned to go with sharding the chain. L2 rollups received some criticism that they took activity from Ethereum and paid back only limited fees. However, the ecosystem growth and app development have improved the standing of Ethereum, allowing users to tap DeFi , lending, DEX trading, and meme tokens without the burden of high gas fees and ￰90￱ that reason, Base chain is considered a part of Ethereum’s future, and not a competitor to L1 activity.