Coinbase, one of the world’s largest cryptocurrency exchanges, has recently announced the launch of its Ethereum Layer 2 network. What’s interesting about this new network is that it won’t have a token.
Layer 2 scaling solutions have been a hot topic in the cryptocurrency industry for some time now. As the popularity of decentralized applications (DApps) has grown, the Ethereum blockchain has become increasingly congested. This congestion has led to high gas fees and slow transaction times, making it difficult for smaller investors to participate in the Ethereum ecosystem.
Layer 2 scaling solutions aim to solve these issues by allowing transactions to occur off-chain, and only periodically settling them on the main Ethereum blockchain. This can significantly increase the speed and reduce the cost of transactions.
Coinbase’s Layer 2 network is called “Coinbase Optimistic Rollups.” It’s based on Optimistic Rollups technology, which is a type of Layer 2 scaling solution that allows for high-speed, low-cost transactions. Unlike many other Layer 2 solutions, Coinbase’s Optimistic Rollups won’t have a native token.
According to Coinbase, the decision to launch a token-free Layer 2 network was made to simplify the user experience. By not requiring users to hold a separate token, Coinbase hopes to make it easier for users to access and use its Layer 2 solution.
In a blog post announcing the launch of the network, Coinbase explained that the Optimistic Rollups technology will enable users to interact with DApps without having to pay high gas fees or wait for slow confirmation times. Additionally, the Layer 2 network will enable users to withdraw their funds from the network and settle them on the Ethereum mainnet at any time.
Coinbase’s Ethereum Layer 2 network is expected to be a game-changer for the Ethereum ecosystem. By reducing gas fees and transaction times, it will make it easier for small investors to participate in the Ethereum ecosystem, and for DApps to attract a wider user base.
The launch of Coinbase’s token-free Layer 2 network is a significant milestone for the cryptocurrency industry.
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