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Coinbase new blockchain seen as ‘massive confidence vote’ for Ethereum

One Ethereum bull hopes the launch will help onboard a host of other crypto companies and financial institutions onto Ethereum.

Although the Etherum community holds a positive attitude towards Coinbase's newly announced layer 2 network Base, this is described as a "large-scale vote of trust" and "demarcation point all the time" for blockchain technology networks.

With Ethernet as the carrier and layer 2 network cheerfulness as the driver, the purpose of Base is to finally become a network to build decentralized applications (Dapp) on the block chain. CoinbaseCEO Bobby Armstrong shows that the layer 2 network is currently in the process of testing the network.

Members of the cryptographic community, such as Ryan Sean Adams, the host of The Bankless Show, felt that the move "should be a massive vote of confidence in the ether", which could open up an example for cryptocurrency companies and financial companies to use etheric as a clearing layer.

Since its inception in 2012, Coinbase has about 110 million validated customers and strategic partnerships with 245000 companies in more than 100 countries. According to the information of CoinGecko, according to the trading volume, the cryptocurrency trading center of our country is the second largest trading center, only second to Binance.

"if Coinbase were to convert 20 per cent of its 110 million certified customers to tier 2 customers in the next few years, this alone would be 10 times the total number of data encrypted user accounts," Russell added.

Adam also praised Coinbase for picking the open source system Base and firmly believes that a new layer 2 network will bring more interior space requirements on the Ethernet.

In addition, Sebastian Guillermo, founder of blockchain infrastructure company dcSpark, shows that Coinbase has made a wise choice to apply a second layer rather than a separate main chain. He stressed that the use value of cryptocurrency transactions locked in the ether now basically stays at the second level.

Watkins, the founder of Syncracy Capital, a financial derivative dedicated to data encryption, described the message in a Feb. 23 tweet as a "demarcation point" for the etheric inductive ecosystem. He added that "no one should think that Coinbase is more level" to allow the next 10 million users and businesses to participate in the Ethernet.

However, not everyone has a positive attitude.

Gabriel Shapiro, general counsel of Delphi Labs, an investment management firm, explained in a Twitter post on February 23rd that the release of a dense layer 2 network opened the door to unpopular verification of SEC.

Shapiro wrote: "A centralized L2 buys and sells many tokens, in which all the total may be so-called securities, or a lot of DEFI transactions (securities exchanges, etc.) are said to be regulated, opening the door for SEC to explicitly propose new types of secondary market debt." He added:

This will accelerate SEC's "secondary market" agenda Re: blockchain technical securities conundrum because they do not leave SEC registrants "safe" and establish a legal compliance arbitrage strategy in SEC's sight.

Mr Shapiro's unease comes as the SEC recently stepped up regulation of several stable foreign investors and betting service providers.

With regard to the launch of Base, lawyers believe that it may be a "bad step for them" and cause "additional harm" to the rest of the ecosystem, especially if SEC finds that system vulnerabilities must be exposed:

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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