Coinbase Commits to Neutrality as Base Reveals Decentralization Plans

Unveiled plans promise to minimize downtime and allow for transparent upgrades.

Man sitting on Coinbase BASE, in natural habitat.
Created by Kornelija Poderskytė from DailyCoin
  • Plans to decentralize Base have been revealed.
  • Unveiled plans promise to minimize downtime and allow for transparent upgrades.
  • Coinbase has pledged not to disrupt the operation of the network for business interests.

Base, the Coinbase incubated Layer 2 network based on Optimism’s OP stack has taken the Ethereum ecosystem by storm. In just over two weeks of its launch, the network has attracted nearly one million users, per TK Research’s Dune Analytics dashboard, and amassed a TVL of about $243 million per L2Beat data at the time of writing.

But despite the massive success of the protocol so far, some concerns have lingered over the network’s centralization. The Base core team has outlined plans for decentralization to address these concerns even as Coinbase has asserted that it will commit to neutrality.

Reduced Downtime and Transparent Upgrades

In a blog post on Thursday, August 24, the Base core team unveiled plans to move to a decentralized model through technical changes and upgrade management.

As revealed by the team, these plans include integrating and decentralizing multiple fault-proof clients. This diversification aims to reduce the risk of network and fault-proof failures. Already running the OP-geth client, the team asserted it would implement the OP-reth client next.

In addition to diversifying clients, the network will have a “Security Council” tasked with managing upgrades through a multi-signature contract. The Security Council will comprise “independent, geographically distributed community members,” according to the Base team. In line with Optimism’s Law of Chains, upgrades will be carried out as OP governance dictates.

The recent plans come as Coinbase has expressed commitment to not exert control over the blockchain.

Coinbase Promises Not To Be Big Brother

As with any blockchain developed by a centralized exchange, there is always a lingering fear that the centralized platform will ultimately control the protocol. Coinbase, however, intends to dispel any such notions around Base.

In a blog post on Thursday, August 24, the firm introduced the “Base Neutrality Principles” for an open and neutral network. Despite its access to the Base sequencer, the crypto exchange vowed that it would not interfere with ordering transactions on Base nor use data from the network for marketing or business purposes.

As part of Base’s commitment to Optimism and the Superchain vision, the core team has revealed that it would allocate 2.5% of Base’s total revenue or 15% of the network’s profits when it is greater, to the Optimism Collective, a DAO saddled with funding public goods. At the same time, Base will be able to earn 2.75% of the OP token supply (about 118 million OP worth nearly $176 million at the time of writing) to allow users to participate in Optimism’s governance.

On the Flipside

  • The Base team did not offer a timeline for transitioning to a decentralized model.
  • It remains unclear how the Security Council will be selected.
  • Coinbase maintains access to the Base sequencer.

Why This Matters

Decentralization remains a defining ethos for the cryptocurrency space. Despite its rapid success, Base’s lack of decentralization remains a cause for skepticism for some. The team is committing to address these concerns by unveiling plans to achieve decentralization.

Read this for a rundown of Base’s first week of launch:

Base Chain First Week Rundown: Adoption, Exploits, and Rugpulls

Learn more about why Bitstamp is ending its Ethereum staking service:

Bitstamp Axes ETH Staking in Wake of SEC Lawsuits

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.