This guide provides an overview of Base, one of the major layer 2 chains compatible with the Ethereum ecosystem. The network uses optimistic rollup technology that bundles transactions off-chain and sends them to Ethereum.
Base network overview
What is a base in simple terms?
Base is a network that uses Ethereum’s infrastructure to secure transactions. The network operates as a second layer on top of Ethereum and uses optimistic rollup technology. This means that all proposed transactions are considered valid. Base then posts the transaction to the next Ethereum block.
Why Coinbase launched its own Layer 2
Coinbase initially shared its intention to create Base as an access point with lower fees. The company wanted to introduce a ton of fun and accessible activities. Base was used as a venue to usher in the summer of on-chain, a time of light-hearted meme trading and NFT launches. The network used that period to test its capacity, onboard users, and establish its presence among other Layer 2 chains.
Base’s role in the Ethereum ecosystem
Base’s primary role is in scaling Ethereum Layer 2. The launch of Base comes after a period when Ethereum fees were extremely high. Base solved this problem by transmitting some of the traffic and encouraging top apps to build new versions of the layer 2 chain.
How the base works
Built on OP Stack (Optimism Technology)
Base is built using components from OP Stack, a framework by Optimism Collective. This makes Base compatible with other similar chains, as cross-chain operations are one of the main purposes of Base.
The OP stack will make Base part of the Optimism superchain, allowing Ethereum to process more transactions while providing niche services on each new L2 chain.
Security with Ethereum mainnet payments
Base provides Ethereum L2 scaling by accepting far more transactions than a regular Ethereum block. Transactions are then batched and rolled up using off-chain calculations. This allows us to process hundreds of thousands of transactions.
The transaction is then cryptographically processed to derive the Merkle root, ensuring the record is tamper-proof. A Merkle Root is a unique number and is published as part of an Ethereum block. This ensures that tampering with records is verified and ensures that the parties on Base do not change transactions.
To achieve this record, Base uses BLOB and pays a daily fee to post to Ethereum. The fees paid for Ethereum vary depending on your general activity.
Scalability benefits (lower fees, faster transactions)
Base can batch more transactions off-chain while only storing data from a single Merkle root, resulting in very low transaction fees. Transactions are also instantaneous, but there is some waiting time before they are finally completed on Ethereum. However, most of the data processing and data transfer is not stored on the blockchain.
Base generates blocks every 2 seconds, so users don’t experience any confirmation delays or long wait times.
Base features and benefits
Coinbase integration (wallets, exchanges, onboarding)
Using Base is integrated with other Coinbase features for both end users and developers. Users can create a Base account through the smart wallet feature, store a secure identity, and access all Base services. However, Base ID is not a replacement for a full KYC Coinbase account.
All users of Coinbase smart wallet also have a Base account by default. The wallet holds all assets on the Base chain and allows access to decentralized exchanges (DEXs) and other apps.
Developer-friendly infrastructure
One of Coinbase’s goals is to facilitate app building. Therefore, developers can utilize the Base Account SDK for integrated apps. Base is compatible with Ethereum, making it easy to use for developers using the Solidity programming language.
The base product also integrates with Coinbase functionality and data. Developers also have access to detailed documentation and the Base Ecosystem Fund to support early-stage projects.
Open source permissionless network
Base provides open source code that helps grow the decentralized ecosystem.
All Base builder resources are freely available and include ready-made components for some of the most common tasks for decentralized applications (dApps). Base provides common payment components, building blocks, and transaction components.
Part of the “super chain” vision
Base is inherently compatible with the Superchain ecosystem. The superchain encompasses other optimistic rollup networks, and Base aims to act as a central hub and bridge.
Superchain is a system of shared protocols and individually developed modules that can be easily adapted to the requirements of different projects. Base therefore opens channels for interchain communication, resource sharing, routing, trading, etc.
Base and other Ethereum Layer 2
Fundamentals vs. Optimism (Partnerships and Shared Technology)
Base and Optimism are both optimistic rollup networks. There are differences between the two chains that allow them to specialize in niche tasks.
Base is optimized to handle a higher number of transactions per second (TPS), while Optimism handles 200 TPS. Both chains produce blocks in 2 seconds, but Base’s transfer finality is about 20% faster. All other parameters of the network are similar.
Base partners with Optimism on governance. We will donate 2.5% of our sequencer revenue or 15% of our net profits in exchange for 118 million OP tokens that will be unlocked over the next few years.
Base vs Arbitrum (difference in ecosystem growth)
Base and Arbitrum have different growth rates due to their different approaches to launch and user incentives. Arbitrum was one of the first L2s to rely on airdrop incentives. Arbitrum’s launch still required paying large fees to Ethereum, which impacted the chain’s growth trajectory. Arbitrum is still creating value and has become one of the major hubs for DeFi.
Base grew its ecosystem through NFTs and meme coins, then expanded with stablecoins and its own version of DeFi. As of 2025, Arbitrum and Base are not in direct competition as they each host their own niche dApps.
Base vs zk-Rollups (ZKSync, StarkNet)
Base uses optimistic rollups. This means that all transactions are presumed to be valid. A validator or sequencer then monitors the transaction for discrepancies. Zero-knowledge rollups take a different approach, using proof of validity that a transaction is genuine and valid. ZK rollup requires complex mathematical proofs and is computationally expensive. Therefore, Base has chosen the path of optimistic rollups with sequencer validation to provide the fastest and cheapest way possible to scale Ethereum.
Ecosystem and recruitment
dApps built on (DeFi, NFT, games)
Base allows you to create many different types of apps. The chain began its rollout with NFTs linked to each user’s base ID. The chain has since added DeFi apps, both multi-chain versions and native marketplaces. Based on DappRadar, as of October 2025, Base had 1.74 million weekly active users, up ~30% week-over-week. data.
Coinbase User Funnel (Fiat → Base Onboarding)
Every user of a Coinbase smart wallet has a Base ID. This wallet offers Coinbase’s regular fiat onramp and can also integrate with other Base apps. fiat with a lamp Directs users to ownership of USDC, the most widely used stablecoin on Base.
USDC transfers are virtually free for Base users. Therefore, the Coinbase infrastructure onboards new users and adds new liquidity to the Base chain.
Partnerships and developer grants
Base grows the ecosystem through Base Ecosystem Grants for new projects. There are also additional resources for developers to enhance their knowledge, visibility, marketing, and networking. Additional funding comes from the Base Builder Rewards and Paymaster Gas Credits programs.
Base also seeks to maintain an open stack by partnering with other platforms and tool builders. The chain has partnered with Aerodrome Finance, Animoca Brands, Alchemy, and other projects for specific tools and Web3 tasks. Base is a partner of the Optimism chain, one of the leading Layer 2 venues for DeFi and high-speed on-chain activity.
Base risks and criticism
Centralization concerns (Coinbase impact)
Coinbase offers a wealth of services for both fiat and cryptocurrencies, but one criticism of Base is that the chain is too tied to Coinbase’s culture. The chain primarily encourages the use of USDC, a stablecoin that can be frozen or censored. Coinbase’s influence may deter some app builders from trying to use Base as their main chain.
The base is stage 1 Because of the chaining, sequencer failure can occur. However, Base still operates using a centralized sequencer that charges fees on transaction orders. Base defends its position in that the sequencer only orders approved transactions, and the actual on-chain content is determined by other apps and smart contracts. Nevertheless, Sequencer allows Base to pay a minimal amount to Ethereum while also retaining the majority of the fees for deploying Sequencer.
Competition between L2s
L2 chains are numerous and diverse, with over 120 active networks. Multiple chains compete for an influx of users and liquidity. Base remains in a tight race with Arbitrum, the leader in stablecoin inflows.
The main focus of competition between L2 chains is transaction costs and available apps. The L2 chain hosts versions of the lending protocol, each with slightly higher yields and offering arbitrage opportunities.
Base is affiliated with some networks, such as Optimism, while others attempt to build independent user bases. Base chains also compete for Solidity developers, but some apps are deployed on multiple chains.
Increased activity on L2 is not detrimental to Base and may actually increase its exposure to all chains. L2 chain almost grabs 14% Base itself accounts for the overall share of economic activity in the Ethereum ecosystem.
Regulatory and compliance risks
Base shares Coinbase’s culture of remaining as compliant as possible. The chain encourages the use of USDC, which is MiCA compliant in the EU and subject to the Genius Bill in the US.
Base is still a non-KYC chain, except for certain Coinbase tasks, which may still require user authentication.
The future of Base in 2025 and beyond
Growth of the superchain ecosystem
Superchain’s ecosystem has grown to handle approximately 700,000 smart contracts and has secured revenue of $5.5 billion. data From Dune Analytics. The main driver of superchain growth is base chain, followed by optimism. Over time, Base’s presence solidified, displacing even smaller chains.
The entire L2 ecosystem is constantly changing as there are various opportunities and incentives in the network. In the 2025 ecosystem state, most contracts were done by Optimism, while most on-chain activity was done by Base.
Potential for mass adoption by Coinbase’s user base
Base was founded at a time when blockchain projects were beginning to seek mass adoption and had a strong retail user base. Base Chain’s uptake began with mass minting of NFTs, followed by summer incentives and fun content.
Over the years, Base Chain has evolved into a financial hub, payment venue, and ecosystem of app-building activities.
Role in Ethereum’s scaling roadmap
Base has been one of the most successful networks to absorb some of the excess liquidity on Ethereum. Ethereum’s roadmap includes both L1 and L2 efforts with the goal of achieving up to 100,000 transactions per second (TPS). Currently, the base is equipped with approximately 1,500 TPS.
L2 rollups and especially optimistic rollups achieved unexpected scaling when the Ethereum chain was originally planning to shard the chain. L2 Rollup was criticized for acquiring activity from Ethereum and repaying only limited fees. However, ecosystem growth and app development have improved Ethereum’s standing, allowing users to take advantage of DeFi, lending, DEX trading, and meme tokens without the burden of high gas fees or congestion. As such, the Base Chain is considered part of Ethereum’s future and not a competitor for L1 activity.
