Coinbase’s Ethereum-based Layer-2 blockchain, known as Base, is taking steps towards decentralization through the implementation of fault proofs. The Base team recently announced that permissionless fault proofs will be introduced on October 30th, with the aim of eliminating single-entity control and enhancing network security.
Fault proofs serve as a mechanism that allows users to question potentially fraudulent or incorrect transactions on Ethereum Layer-2 networks. By enabling any participant to make claims about the network’s state and dispute invalid withdrawals, Base seeks to reduce its dependence on centralized entities. In the past, only a centralized entity had the authority to propose and validate the network’s state. However, in the future, anyone will be able to make and challenge fraudulent claims, promoting greater decentralization.
The upgrade will also impact the withdrawal process. It will involve proving and finalizing transactions based on the fault-proof system. The ‘DisputeGameFactory’ contract will replace the ‘L2OutputOracle,’ resulting in enhanced security. Withdrawals initiated before the upgrade may face a 7-day challenge period, while those after the upgrade will also take 7 days but could face delays due to challenges.
Base has emerged as a dominant player in the Layer-2 space. Developed using Optimism’s OP Stack, Base is inspired by the successful deployment of fault proofs on Optimism’s flagship blockchain, OP Mainnet. Both networks are part of the Superchain ecosystem, which comprises interconnected Layer-2s.
With a total value locked (TVL) of $2.4 billion, Base has solidified its position as the largest Ethereum Layer-2 chain in terms of TVL, surpassing Arbitrum (ARB) and Polygon (MATIC) according to CoinGecko. In Q3 2024, Base experienced a surge in transaction activity, accounting for 42.5% of all transactions on Layer-2 networks.
Data from Artemis reveals a significant increase in daily active addresses on the Base blockchain. In May, there were 326,000 daily active addresses, whereas in October, that number rose to 1.4 million, representing a remarkable growth of over 400% in less than six months. Similarly, daily transactions have surged during the last five months, increasing from 65.9 million in May to 137.6 million in September, indicating a growth of over 100%.
Overall, Coinbase’s Base blockchain is taking steps towards decentralization through the implementation of fault proofs, aiming to reduce reliance on centralized entities and enhance network security. With its growing dominance in the Layer-2 space, Base has positioned itself as a key player in the Ethereum ecosystem.
