Getting Started With Base
Base is a layer-2 (L2) blockchain that was incubated by Coinbase and built using the Optimism software stack. It is designed to be a more scalable and efficient alternative to the Ethereum mainnet, while still maintaining security and decentralization. Base uses a rollup technology called Optimistic Rollups to achieve scalability. This means that transactions are processed off-chain and then batched together and submitted to the Ethereum mainnet. This allows Base to handle a much higher volume of transactions than the Ethereum mainnet without sacrificing security.
Base is also designed to be developer-friendly. It uses the same programming language as Ethereum, Solidity, and it supports all of the same Ethereum tooling. This makes it easy for developers to build decentralized applications on Base. Base went live on August 9th, 2023, and it is already gaining traction in the Ethereum community. It is a promising new L2 blockchain that has the potential to make Ethereum more scalable and accessible to a wider audience.
Here are some of the key features of Base:
● Scalability: Base uses Optimistic Rollups to achieve scalability, which allows it to handle a much higher volume of transactions than the Ethereum mainnet.
● Security: Base is secured by the Ethereum mainnet, which is one of the most secure blockchains in existence.
● Developer-friendly: Base uses the same programming language as Ethereum, Solidity, and it supports all of the same Ethereum tooling. This makes it easy for developers to build decentralized applications on Base.
● Open-source: Base is an open-source project, which means that anyone can contribute to its development.
The architecture of Base
Base uses a rollup technology called Optimistic Rollups to achieve scalability. This means that transactions are processed off-chain and then batched together and submitted to the Ethereum mainnet. This allows Base to handle a much higher volume of transactions than the Ethereum mainnet without sacrificing security.
Here is a more detailed explanation of how Base works:
● A user sends a transaction to Base.
● The transaction is processed off-chain by a group of validators.
● The validators agree on the state of the blockchain and publish a fraud-proof to the Ethereum mainnet.
● If there is no fraud, the transaction is confirmed on the Ethereum mainnet.
● The user’s balance is updated on both Base and the Ethereum mainnet.
The Rhythm of Base
The pulse of Base is strong. Since its launch on August 9th, 2023, Base has seen a surge in activity. Amassing over $260m in TVL, with ETH, USDC, and DAI accounting for 65%, 24%, and 6% respectively, and others 5%.
Base also has ~200k weekly active addresses, accounting for 8.8% of all L2s. This is mind-boggling, given that Base has been available to the public for barely a month.
This growth is being driven by several factors, including the high throughput and low fees of Base, as well as the growing number of decentralized applications that are being built on Base.
Wen’ $base
This is a question every crypto degen is asking at the moment, and threadbois are trying to answer. Coinbase has stated explicitly that they wouldn’t issue a token for Base. On the other hand, they have also said the goal is to decentralize Base going forward — this is the goal of every L2. Both statements sound counterintuitive in my opinion because they run opposite to each other.
People are speculating if Base is going to have a token or not, with most leaning towards the former. Even if you aren’t deep into the weeds in crypto, you already know that everything has a token, from apps used to take care of dogs, to those that reward you for meditating, name it. Whatever it is, slap a token on it and watch it take off. It’s more of a marketing scheme now. So if projects not that vital to crypto infrastructure can have a token, why won’t Base — which is vital to scaling Ethereum and crypto as a whole.
Also, the past is littered with projects saying they won’t issue a token at launch, only to work back on that as the project matures — with zkSync being the recent example.
The above take is common on Twitter as to why Base is going to issue a token. I have mine too, which are a little bit nuanced. The end goal is to decentralize Base right? There are two major ways every rollup goes about it.
● Permissionless validation in the form of decentralized fraud/ZK proofs: This requires decentralizing sequencing, which is the process of ordering transactions on the blockchain. A token would need to be staked for sequencing and incentives for sequencers. This is because staking a token is a way to show that you are committed to the network and that you will not try to cheat.
● DAOs: Decentralized autonomous organizations (DAOs) are organizations that are run by code and not by people. They make decisions through voting, and to vote, you need to have a stake in the DAO. This stake is usually represented by a token.
If you are anit-base, you’d say that the above can be done using $OP, and you are correct. Only that, I don’t know of a DAO in crypto that comes to a consensus using the token of another DAO (excluding ETH). For instance, arbitrum DAO voting for an AIP using $LDO. That’s not something I would like to hold my breath for (assuming I’m anti-base).
In addition to the reasons stated above, there are other reasons why Base might have a token. For example, investors may want their money back, and launching a token is the easiest way to do this. Additionally, the regulatory climate may not be favorable for Coinbase to issue a token right now, but this could change in the future.
Okay, enough of the speculations, let’s move on to something else.
The requirements to use Base
- A Wallet — Wallets are the gateway into Crypto. Metamask is the most popular crypto wallet, but quite confusing for beginners and doesn’t work so well on mobile. Trustwallet is the second best and works perfectly on mobile as it does on desktop. Once you have downloaded it, click the Create Account option. You can either create a new wallet or import an existing one. Whatever option you choose, make sure to back up and keep your mnemonic seed phrase safe.
- Some ETH — To perform any transaction on Base, you’d need some ETH to pay for gas fees. You can either purchase ETH using a DEX on Trustwallet, but this will still require you to have ETH to cover gas costs, to begin with. An easier way to go about this is by purchasing ETH on your favorite CEX using fait. Then send it over to your Trustwallet address.
How to bridge to Base
Now you have ETH on your Trustwallet, you need to bridge it over to Base, to be able to perform Base-based transactions and get the full perks of the chain. The primary bridge used is the Coinbase Bridge, built and managed by Coinbase itself.
Coinbase Bridge is the easiest way for beginners. If you have more feathers in your cap, you can try out other bridges like Across Protocol or Axelar.
What to do on Base
1. Provide liquidity on Aave
Aave is a non-custodial liquidity protocol. Users can participate as suppliers, borrowers, or liquidators, earning interest on supplied assets and borrowing in an over-collateralized manner — per their website.
To get started, visit https://app.aave.com/markets/ and connect your Trustwallet and select the pool you want to supply liquidity to, probably based on supply APY.
2. Collect NFTs on Zora
Looking to do more than just provide liquidity on Aave? Consider picking up some Summer Zorb on Zora. Zora is a decentralized NFT marketplace that allows users to collect, trade, and discover NFTs. You can collect the Summer Zorb by imagine zora. It cost 0.000777 ($1.554) ETH at the moment, to mint one, and already has 16.2k mints so far. This went live on August 16th and has 14 days left to mint. I think this is a play on the whole on-chain summer thing currently going on with Base.
3. Create Galxe ID
Galxe is a Web3 credential data network that allows developers and projects to profit from credential data by building better products and communities. It is built on an open and collaborative infrastructure that allows anyone to create, distribute, and gamify NFTs with customized on-chain data.
On Galxe, you can do the following:
● Create and manage your digital credentials, such as educational qualifications, work experience, and skills.
● Use your credentials to participate in NFT loyalty programs, growth hacking campaigns, and gated communities.
● Build your own NFT projects and applications using Galxe’s Application Modules, Credential Oracle Engine, and Credential API.
● Earn rewards for curating and sharing credential data.
Additional Base apps
If you have a bit of experience under your belt and want to get your hands dirty. Below are some apps on Base that you can try your hands on.
Closing Thoughts
Base is a new L2 blockchain that has the potential to revolutionize the way we interact with the Ethereum ecosystem. It is scalable, secure, and developer-friendly, making it the perfect platform for building decentralized applications. In the future, I believe that Base will become the go-to L2 blockchain for developers who want to build scalable and efficient dapps. It will also become a major player in the Ethereum ecosystem, helping to make Ethereum more accessible to a wider audience.
I am excited to see what the future holds for Base. I believe that it has the potential to revolutionize the way we interact with the Ethereum ecosystem and make Ethereum more accessible to a wider audience.
