Coinbase-Backed Base Network Launches Permissionless Fault Proofs to Boost Security and Decentralization

Ethereum Layer 2 Base network developed by Coinbase Global Inc (NASDAQ: COIN), is set to become more decentralized.

Base, an Ethereum Layer 2 (L2) network being developed by Coinbase (NASDAQ:COIN), is set to launch its permissionless fault proof solution on October 30, 2024. This marks a significant step in the L2 protocol’s decentralization efforts.

Base is designed to solve Ethereum's scalability issues by handling transactions off the main chain while maintaining the security of the ETH network. The L2 protocol operates as an optimistic rollup, combining multiple transactions into one to reduce congestion and gas fees on the ETH network.

However, rollups require a mechanism to ensure the validity and trustworthiness of off-chain transactions, which is where fault proofs come into play.

These proofs are crucial for decentralizing L2 networks, and Base's permissionless fault-proof system aims to enhance the overall validation process. It allows anyone to propose or challenge claims about the network's state in a permissionless manner.

If an invalid claim is made, it can be challenged by others using the fault-proof mechanism. This shifts the power from centralized operators, who previously had the exclusive right to make such claims, to the broader community.

With the launch of fault proofs, Base will reduce its reliance on central authorities and enhance transparency and accountability in the L2 network. This development could set a standard for other L2 solutions in the Ethereum ecosystem.

As platforms seek to scale while maintaining decentralization, Base's rival, Optimism, has also announced the implementation of fault-proof functionality on its mainnet.

Several additions have been made to enhance the Base network in recent months. In August, the fast-growing L2 solution made a strong entry into the on-chain identities sector with the launch of “Basenames.”

These Basenames are built using the Ethereum Name Service (ENS) infrastructure, allowing users to simplify their complex hexadecimal wallet addresses into user-friendly, readable names. This name service is not new in the crypto ecosystem; other protocols have implemented it.

It is quite similar to website subdomains, allowing an existing ENS domain owner to create and manage multiple surnames or subdomains under their primary name. Base, in its announcement, explained that Basenames will serve as a critical ecosystem component. The protocol says it will make it easier for users to interact within the blockchain space.

For a network that was launched only last year, Base has grown tremendously. It has climbed the ladder to be second on the top industry leaderboard provided by L2Beat.

Out of 74 active L2 networks, it has about 18% of the market share, coming in just behind Arbitrum One, which dominates with a 40% share.