Coinbase's Base Network Integrates Chainlink to Improve Developer Proficiency

Coinbase’s Base Network Integrates Chainlink to Improve Developer Proficiency

UTC by Tolu Ajiboye · 3 min read
Coinbase’s Base Network Integrates Chainlink to Improve Developer Proficiency
Photo: Depositphotos

Base has integrated Chainlink Automation, to make dApp development easy for developers, by enhancing general smart contract scalability.

Base, the Ethereum (ETH) Layer-2 network incubated by Coinbase, has announced a successful integration with Chainlink Automation. The development is an attempt by base to improve the platform’s smart contract scalability. Following the integration, developers on the Base network can now easily access decentralized and verifiable smart contract tools.

Benefits Available to Base Developers From the Chainlink Integration

In addition to the enhanced decentralization, Chainlink Automation offers secure services that provide a reduction in gas fees by up to 90%. This helps developers to perform heavy tasks that may have been significantly expensive otherwise. According to Base Creator and Head of Protocols at Coinbase, Jesse Pollak, the offload offers a direct scalability advantage. The Coinbase exec states that the ability to offload heavy operations to Chainlink allows Base developers to expand and also develop more use cases.

Chainlink Automation also provides several other features to Base developers looking to use one smart contract with multiple decentralized applications (dApps). Furthermore, the integration between both platforms allows Base developers to enjoy features of Chainlink platforms, including Data Feeds on Base and Cross-Chain Interoperability Protocol (CCIP). Taking advantage of both platforms enables developers to design tools with scalability in mind, no matter how sophisticated.

Coinbase officially launched Base to the public last August. The testnet initially launched in February, with a release for developers launching much later in July. Base is a layer 2 roll up network that can process transactions off the Ethereum network before bringing them back to the blockchain, which makes transactions more cost-effective and accessible. At the launch, Pollak said there are nearly 100 dApps ready for deployment on Base.

Several updates followed the platform’s launch, pointing to quick adoption of the Coinbase platform. For instance, both Uniswap and Maverick Protocol announced their base versions following the launch.

By September, a little over a month after the public launch, the platform already recorded impressive growth. According to BaseScan, the platform nearly hit 2 million transactions on September 14, 2023. September also saw Circle’s native USDC stablecoin launching on Base.

Coinbase and the SEC

While Coinbase celebrates its Base development, the company is still in court against the United States Securities and Exchange Commission (SEC). Last Wednesday, New York District Judge Katherine Polk Failla presided over a hearing between representatives of the SEC and Coinbase. One major issue was whether or not crypto tokens listed on exchanges qualify as securities. While it seemed that they don’t, attorneys representing the SEC believe that these tokens are investment contracts. Nonetheless, the head of Coinbase’s legal team, William Savitt, maintained that cryptocurrencies on exchange platforms are secondary sales and do not qualify as securities according to the Howey Test.

The Judge has several weeks to decide on the case. Regardless, Judge Failla’s decision would be a pivotal one for the crypto industry in the US. If the ruling favors Coinbase, the SEC would have to reevaluate its regulatory efforts in the sector, and likely take a back seat.

Blockchain News, Cryptocurrency News, News
Related Articles