A Deep Dive into Coinbase's New Layer 2 Blockchain, Base

Hello, dear readers! Zachly Trades here, bringing you the latest insights from the world of finance. Today, we're going to talk about something that's been making waves in the crypto space: Coinbase's new Layer 2 blockchain, Base.

Base: The New Kid on the Blockchain

Coinbase, a leading cryptocurrency exchange, is set to launch Base Mainnet, an Ethereum Layer 2 (L2) blockchain, on August 9. This new blockchain is touted as a secure, low-cost, and developer-friendly platform designed to bring the next billion users to web3.

Base is unique in its approach, and here are five key features that set it apart:

1. Built Using OP Stack: Base is built using OP Stack, a modular, open-source framework developed by the team behind Optimism. This means there will be a high level of interoperability between the L2s.

2. No Native Token: Unlike other L2s, Base doesn't have its own dedicated network token and there are no plans to issue one. This design is made possible thanks to the support of Coinbase.

3. Housing Coinbase Products: Base was designed to power various Coinbase products, but it also has broader ecosystem ambitions. The vision is to build an open ecosystem that will attract other applications.

4. Committed to Decentralization: Despite Coinbase's involvement, Base is committed to decentralization. The only sequencer on the Base network is currently Coinbase, but there is a roadmap for decentralization in the coming months and years.

5. Supports Account Abstraction: Base supports account abstraction, allowing third-party externally owned accounts (EOAs) to execute transactions on behalf of someone else. This means users can engage with smart contracts without having to pay gas fees or worry about storing private keys.

Coinbase: A Closer Look

Now, let's take a moment to look at some recent developments at Coinbase. In January 2023, Coinbase, Inc. paid a $50 million penalty as part of a consent order with the New York Department of Financial Services (NYDFS) focused on historical shortcomings in its compliance program.

On the brighter side, Coinbase has been expanding its product offerings. It now helps customers make payments, save, earn rewards, access NFTs, use the Coinbase card, and access third-party applications in Web3.

However, it's not all smooth sailing. The company has faced allegations of breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets.

Wrapping Up

Coinbase's new Layer 2 blockchain, Base, is an exciting development in the crypto space. It's a testament to the ongoing innovation in this industry. However, as with any investment, it's important to do your due diligence and understand the risks involved.

As always, stay tuned for more investment intelligence, and remember: knowledge is power!

Trade Idea: COIN

Coinbase is following a basic setup currently. Prior resistance becomes new support. IF it can hold above 81.44 then 90.92, 102.93, and 118.20 are going to be your bullish Price Targets. However, if the recent news becomes a sell the news even you want to be cautious of the bump and run pattern forming on the chart. Breaking the support trendline could send this stock lower back to 60 potentially. Remember to look for how you can make profits on the chart and not to let your personal bias get in the way of any trading or investment decisions.

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