Base: Will Coinbase’s Layer-2 Network Open Source Go Token Launch?

Coinbase's Layer-2 blockchain network Base has opened up its code repositories and smart contracts in a move to increase transparency and foster public cooperation.

Main points

Coinbase's Layer-2 blockchain network Base has made its code repositories and smart contracts open source. This enables public visibility of Base development and enables developers to contribute improvements. Coinbase is offering up to $1 million in bounties for finding bugs and security flaws in Base's code. Base has open source web assets, including the main site, the documentation site, and the bridge site. In just 3 months, Base has become the 3rd largest Layer-2 by gross value of $549 million. But its market share is only 5% as Arbitrum and Optimism dominate the layer-2 ecosystem. Coinbase has not ruled out issuing a base native token in the future. Base recently moved its testnet from Gurley to the Sepolia chain to unify the Layer-2 ecosystem.

By making its smart contracts and core code publicly available on GitHub, Base is providing full visibility into its ongoing development and functionality. This allows any developer to review, analyze and contribute improvements to the open source project.

According to Baez, open sourcing serves as a catalyst for community participation and holds the network accountable for delivering on the technical roadmap. It also allows developers to learn from and extend the work of Base so far.

One of Base's core values ​​is building on open space.

We believe this is the foundation for building an onchain ecosystem, creating accountability and enabling collaboration.

In this spirit, we have open sourced our smart contract and GitHub repos

— Base ????️ (@BuildOnBase) October 19, 2023

As part of its commitment to transparency, Base revealed details on its multi-signature setup and key management processes. It aims to demonstrate a proactive approach to security, which is critical to a network that manages users' money.

In addition to the original protocol code, the base also opened up its main web assets, including the home page, the documentation portal, and the bridge site.

While open source promotes transparency, Base acknowledges that there are risks, such as malicious actors exploiting vulnerabilities. To encourage responsible disclosure, it is offering a reward of up to $1 million for reporting previously unknown errors.

Within three months, Base quickly grew to become the 3rd largest Layer-2 platform, clocking in at $549 million. However, rivals Arbitrum and Optimism still dominate the ecosystem with 80% market share.

By embracing open source collaboration, Base hopes to accelerate development and adopt a scalable solution based on Ethereum. And while Coinbase is still weighing Base as a potential native token, the future looks promising if the community can strengthen its technical foundations.