Aug 9, 2023

Coinbase (COIN) announced that its new "Base" blockchain has gone live, heralding the start of a new era of public companies running their own distributed networks.

Video transcript

Base coin base layer two Blockchain is now live and available for all the goal for the project which we've spoken about on the show before is to bring the next million builders and billion users on chain and accelerate DFI. They hope to make it easier for anyone to explore and interact with that with less gas fees, fast speeds and secure transactions. Settled on Ethereum, Wendy. I will pass this off to you. Are you gonna be exploring base uh kind of, but if I do explore like we'll talk about it on the show I owe on my show. Um The O show Everything Krypton NFTS every day over on youtube. Sorry, I gotta plug myself live stream daily at 10 a.m. PST. Um We'll talk about like these major news stories that pop up. But as far as exploring base, I will probably do that privately. Um The reason why is I feel like there's gonna be a, a lot of very interesting and fun projects there that are extremely risky and probably a lot of them will be Rug Poles because that's what happens in crypto and we don't talk about that stuff on my channel unless we're doing like coin request. So I'll probably take a look into it. Um But do so do it more so privately and just cover these types of stories. But I mean, what makes base different than any other layer too? Do you want to find out? Let's dive into it. This is actually a great story to follow up what we just talked about a second ago with the layer one that have brought in a lot of talent from the the Lieber project brought in like this new software with move and all that big announcement, big token launch back in the fall kind of sputtered out very quickly. Coin base went the other way, they could have launched something like A BS C. They could have launched their own layer one. But no, they looked at Ethereum, they looked at some of the layer ones that are out there that already have that first mover advantage already have the network effect. And they said, why don't we just build on top of it and save ourselves a lot of trouble? Like there's a lot of problems with layer ones because of scalability issue. But if you start building this layer twos like base on top of it, we sort sort of solve your problem and you're able to make a business as well. Coin base is going to rake in a lot of fees from this project if it is sustainable. If there's a lot of projects built on top of it. If DAP FFTSD five projects choose to move on top of base. Now, the question there of course, is like a regulatory one, right? Because this is a layer two that is apparently not really controlled by coin base, especially if you look at the bald incident from last last month, last month, which did happen on top of base. And if SED or someone else comes in and is like, hey, we don't like that you're building this, that could certainly hurt the revenue. But I like the fact that coin base looked at the market and said we don't wanna build a layer one competitor, we want to build on top of the, we want to build on top of the stuff that's already here. Zach, yeah, the layer two stuff and again, like uh a lot of chat around optimism I think is super fascinating, right? You have uh these layer twos that are ultimately, you know, and again, the mechanics of each gym is somewhat different but are ultimately settling to the primary layer one in the smart contract space which is still Ethereum. And there's a lot of people saying, OK, this is the path forward for developing on chain experiences that benefit from the security of Ethereum, but also benefit it from fast cheap transactions that are again mainstream ready. So the fact that coin base is at least stewarding the launch of this thing and doing So on, an L two really suggests to me that this could be the model for future launches going forward, right? We may see less of these L one spring up and capture mind share and we may see more of these L two s spring up for various sort of custom purposes that then settle back to the shared security layer of the Ethereum base chain. So I think coin base is pretty savvy in understanding that maybe this is where things are going and that they're putting their weight behind it as it relates to building. So sort of the on chain experiences of the future, you know, as opposed to, you know, doing the Binance smart chain route, right, which is I think is a cosmos SDK chain. Uh but it is kind of its own thing, right? Um So the idea that they are sort of supportive of this L two vision, I think it's pretty interesting and you have them sort of again touting this sort of on chain summer messaging like campaign around this stuff. And it's gonna be really interesting to see they have some big name partners lined up. It's gonna be interesting to see like what Coca Cola is doing, for instance, what kind of um mainstream friendly consumer, the applications are ultimately built on base and how that again on boards are not people to the broader ecosystem. I think that's still really the open open question. Does this onboard people into other aspects of the on chain economy or do people just end up being siloed here? Either way, I think is probably fine, but it's interesting to see what the user behavior will be. At least that's what I'm looking for. Uh Wendy, I think I saw your hand actually. What's up? I just wanted to make a comment. I wonder behind the scenes how they did, like how they plan to launch this legally or what they're in and working alongside their legal department because let's face it. Coin base is leading this charge against the sec now. Um, and they're pretty much fighting for all of crypto, which I appreciate that, but I'm really curious to see their internal documents with legal. Like, how should we launch this? Is this a good idea? Do you think a less chance of being a security? Just those types of things? And again, that's just speculation from my end as to what topics were covered with them. But I think it'd be pretty interesting to see how they decided to do that. And if the SEC will go after coin base for base as an unregistered security or who knows what else? I love that coin base still launched this while they're getting sued by the SEC. I don't know if you all I know. Right. So defy it. Very cool. Um If you remember that Senate bill, I don't remember when we chatted about it, but, um, you know the Senate is talking about wanting to regulate D I like a bank. I, I am curious about how the rollout of base will inform the conversations about regulations act. Like, like you brought up, like maybe we'll see regulators try and go after Coinbase and realize through doing that, that they can't stop some of the things that are going on here and that will change the course of, of discussion when we talk about, you know, regulation when it comes to D I uh in the US. And I want to mention the mainstream brands act, you brought up Coca Cola, also Atari and Open Sea are participating in this on chain summer campaign that they have going on. I'm curious to see how many users that this campaign will actually bring right coin base has been really good at seeing where people are building, seeing what's happening, seeing what's on trend, trying things out, discontinuing them. If it's maybe not working out. The one I think about is when they were launching that um trilogy with the B A yacht club that I think they paused in 2022. This is obviously very different, but they've been very good at looking at what's on trend where things are going and trying it out. I will be very curious to see how many people actually um use the product and a disclosure. I contribute to a dow that is announcing a partnership with base today. Whoa Whoa. I just really quick. Yeah, it, last thoughts, last thought to my knowledge base itself does not have a token, but there is a base token out there that's not affiliated with the whole project. Rebase Token that's pumping on the news is about 10%. The funny thing about it is Rebase Token is a rebased token which means that it increases the supply based on the demand of the token. And so people who are buying this are going to get rugged by the protocol itself. So we defy some throwback for the story. I remember those, those are so much fun. I just lost money all the time.

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