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HomeNewsGiga Bullish on Base + Optimism (Part 2)

Giga Bullish on Base + Optimism (Part 2)

**Why Optimism?** A good question is that among so many potential Layer 2 projects appearing at the present time in the market, why did Coinbase choose Optimism? There are many opposing views, here are some of my opinions Previously, Ethereum’s Centric Roadmap focused mainly on the application of Sharding technology. However, with Rollups solutions starting to appear and be widely adopted along with the complexity of deploying Sharding to the Execution Layer, Ethereum’s initial scalability development roadmap revolved around Sharding technology application has been removed. Instead, the Ethereum development team believes that the key to Ethereum’s scaling solutions will be the Rollups technology. Ethereum’s plan after The Merge is successful is to become a Data Availability layer so that Rollups can take advantage of the security from Ethereum In addition, if the Shanghai Upgrade goes smoothly, EIP-4844 (Proto-DankSharding) can will be implemented shortly. This is an update that can help reduce Ethereum gas fees, especially for Rollups. Obviously, at the present time in the market, although ZK-Rollups is widely expected by the community to be able to outperform Optimistic-Rollups solutions, most potential projects are still at the testnet or pre-stage. -manet but have not shown reliable practical results, obviously Optimism and Arbitrum are the two brightest names among the current L2. It’s hard to say why Coinbase didn’t choose Arbitrum, but I can say why they chose Optimism. Firstly, the Optimism ecosystem has had an impressive breakthrough growth in the past 2022 despite the market experiencing many “black swan” events that have caused significant damage. From txn activity, daily active users or new users all continuously break ATH. Optimism also continuously offers incentives programs to retain its new user base. Besides, the upcoming Bedrock update of Optimism along with the recent launch of the open-source OP Stack code will be an important step for Optimism to realize its vision of becoming a modular blockchain in the future. future. Obviously, Base teaming up with OP Labs to build a Superchain is understandable. The speed of development in terms of security, decentralization of Base since the testnet in early January until the last mainnet launch thanks to OP Stack is the clearest proof for this **Bullish on OP** Obviously, Coinbase’s choice of choosing Optimism as a partner to develop Base is a glorious victory for the Optimism ecosystem in competition with Arbitrum at the moment. As I mentioned, Base has a pretty big potential advantage thanks to Coinbase’s strong ecosystem, they have also become Core Devs of OP Stacks along with OP Labs, so in the future there will be 2 Layer 2 together. is built on the same Stack, the speed of development and expansion will also increase significantly. Besides, a part of the transaction fees on the Base will also be transferred to the Optimism Collective for the purpose of sponsoring the incentive programs above. Optimism and at the same time Coinbase will also plan to launch its own ecosystem development fund. The combination of Coinbase and Optimism will be the first steps for more and more Rollups to be built on top of the OP Stack, thereby removing existing barriers for projects that want to build Rollups and open up. a future about a decentralized, secure and scalable SuperChain that is no less than Ethereum. Perhaps that is why the ecosystem of Optimism is something that we will probably have to pay more or less attention to in the near future. , maybe we will see an Optimism summer for example **Not all pictures are pink** Painting is bright but there are things that we need to put on the table to consider. Firstly, Coinbase’s client base and users have traditionally been seen as investors who don’t like too much risk (perhaps because Coinbase also doesn’t have high-leverage services like other CEXs). . And since Base’s user file will also be mostly from Coinbase, perhaps in the early stages of development, segments like Borrowing, Lending will thrive (these are pieces that attract quite a lot of TVLs) The fact that users do not having too much degen blood will also partly affect the operation of the ecosystem, reduce volume, reduce txn,… Besides, most of Coinbase’s users currently already have and are able to use the Financial The service is already on TradeFi, so convincing them to step into the world of Web3 and experience DeFi is also a dilemma. Legal risks are also not absent, especially in the context that the SEC is starting to have signs of wanting to deter the Crypto market after a terrifying 2022 for Institutions. Coinbase will also have to be careful with this in the future, maybe that’s why they don’t have any announcements about Base’s native token launch at the moment **End** Okay, say A few key takeaways from these two articles are as follows: * The launch of Base is a success for Coinbase’s growth in expanding its market share in the future and is also a big step forward for Coinbase. The expansion of OP Stack * Base has a lot of potential to grow and compete with the big players in the market, especially when Coinbase has more than 110m KYC users and over $80b of assets on their platform. Although there may still be some reluctance on the part of users, these are still extremely large numbers when only 2.5% of them are enough to flip Arbitrum at the present time. * Finally, Optimism will also benefit a lot from this move. An important success in the race to compete for market share with other Layer 2 at the moment, especially Arbitrum It’s over, good luck

Source: Collector



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