What is Base (Coinbase L2)

Base is an Ethereum Layer 2 network built and maintained by Coinbase — the largest US cryptocurrency exchange. Launched in August 2023 on the OP Stack (the same technology powering Optimism), Base became the fastest-growing Ethereum L2 in 2024 by transactions, active addresses, and new developer deployments. WHAT IS THE OP STACK Base is built on the OP Stack — an open-source modular framework developed by Optimism. This means Base shares Ethereum's security model and is compatible with all existing Ethereum tools and contracts. Base is part of the "Superchain" — a vision of many OP Stack chains sharing a common bridge, governance framework, and sequencer network. Other OP Stack chains: OP Mainnet, Zora, Mode, Worldchain. WHY NO BASE TOKEN? One of Base's most discussed characteristics is the absence of a native BASE token. Coinbase has stated it has no plans to launch a BASE token. Transaction fees on Base are paid in ETH. Revenue from sequencer fees (the difference between L2 fee revenue and Ethereum data posting costs) flows to Coinbase. This decision was controversial — users farming for a potential airdrop were disappointed, but Coinbase argued it maintained regulatory simplicity. BASE'S RAPID GROWTH DRIVERS Coinbase integration: Coinbase Wallet natively supports Base. Coinbase's 110M+ verified users have a seamless onramp. Developer incentives: Coinbase deployed significant grants to attract projects. Low fees: Base fees typically $0.01-0.05 per transaction. Consumer app focus: Base has explicitly positioned itself as the home of consumer crypto — social apps, gaming, and creator platforms rather than institutional DeFi. NOTABLE BASE ECOSYSTEM APPLICATIONS Friend.tech: Social token platform where users buy "keys" to access influencers. Drove Base to #1 in DEX volume briefly. Aerodrome Finance (AERO): The dominant DEX on Base using ve-tokenomics. Base's equivalent of Curve/Uniswap. Farcaster: Decentralised social network with Frame mini-apps built on Base. Zora: NFT creation and collection platform. Onchain Summer: Coinbase's campaign bringing major brands (Coca-Cola, Atari) onto Base for NFT activations. BASE IN INDIA Indian users can bridge to Base via the Coinbase Wallet app directly — the most accessible L2 entry point for users already on Coinbase. Lower fees make Base practical for small-value transactions that would be uneconomical on Ethereum mainnet.

Terms in addition to the Base (Coinbase L2)

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.