• Coinbase announced the launch of its Base product, which is an Ethereum layer 2 enabling anyone to build dApps cost-effectively.
• Chris Blec argued that Coinbase’s Base is a WEF play for CBDCs and a cashless society.
• Coinbase stated that Base would not incorporate a token, instead Ethereum will be used as the native gas token.
Coinbase Launches ‚Base‘
Coinbase recently announced the launch of its new product, ‚Base‘. It is an Ethereum layer 2 enabling anyone to build dApps cost-effectively. It aims to make onchain the next online and onboard 1 billion users into the cryptoeconomy.
WEF Play for CBDCs?
Chris Blec, host of Proof of Decentralization Podcast, suggested that Coinbase’s Base could be a World Economic Forum (WEF) play for Central Bank Digital Currency (CBDC) tech and a cashless society. He also noted that while Base will be permissionless to build on, there were no explicit narratives about it being permissionless to use – meaning only those who verify their identity will be granted access.
Ethereum as Native Gas Token
Coinbase has stated that Base would not incorporate a token; instead Ethereum will be used as the native gas token. Jesse Pollack, Head of Protocol at Coinbase, added that since Coinbase already has a captive userbase, developers have access to this large existing user group from the off when building applications on Base.
Network Neutrality Suspicions Rekindled
The announcement rekindled discussion about Ethereum being co-opted by entities who seek to censor and centralize the chain – especially after U.S Treasury’s announcement in August 2022 stating over $7 billion had been laundered through Tornado Cash mixer protocol including funds stolen by North Korean hacking group Lazarus.
Overall, although Coinbase’s Base sounds promising in terms of building applications cost effectively with easy access to users through Coinbase’s captive user base – there are still suspicions over network neutrality due to U.S Treasury’s announcements last year about illicit funds being laundered through Tornado Cash mixer protocol.