Coinbase Uses Ethereum-Based Altcoin in New Layer-2 Scaling Platform
Coinbase has announced that it is using Chainlink's decentralized oracle network for its Ethereum (ETH) layer-2 project, Base.
The purpose of the project is to facilitate easy development of decentralized applications (DApps) on the Ethereum network and other alternative layer-1s such as Solana (SOL). It is designed to be fully compatible with Ethereum and its layer-2s like Optimism.
Chainlink’s price feeds have already gone live on the Base testnet, with Base also participating in the Chainlink SCALE program. This program offers developers Chainlink data and services at a reduced cost, making it easier for them to build their applications.
Jesse Pollak, the lead developer for Base, expressed his excitement about the collaboration with Chainlink and the benefits it brings to developers:
“We’re super excited to launch Base with collaborators such as Chainlink and to join the Chainlink SCALE program to empower developers with the critical data and services they need to build their applications.”
Chainlink’s price feed mechanism provides the USD prices of various tokens, including ETH, to other blockchains. It uses independent oracle nodes and data sources to retrieve and deliver the data, which can then be used by applications and smart contracts to settle trades, loans, and other transactions.
According to Coinbase’s Pollak, the main objective of Base is to make it easy for developers to create DApps and for users to access those DApps through Coinbase products. He further added that the project’s success hinges on the values of decentralization, open source, and inclusivity:
“We’ve made an effort to go out to everyone and bring them into this open ecosystem. What will be required of us to make this successful is to continue to double down on those values of decentralization, open source, and having this be for everyone and a bridge that connects our users into the crypto economy and brings them to places they can go that aren’t controlled by Coinbase but can offer them valuable experiences.”
Coinbase’s collaboration with Chainlink will drive the adoption of decentralized finance (DeFi) and other blockchain-based applications. As Coinbase continues to explore innovative ways to bring the benefits of blockchain technology to its customers, we will likely see more partnerships and collaborations with other industry players in the near future.