Coinbase Opens the Door to Transparency: Base Layer-2 Network Code Goes Open Source

Coinbase's Layer-2 Network, Base

Coinbase, a prominent name in the cryptocurrency exchange sphere, launched its layer-2 network, Base, earlier this year. This innovative network swiftly gained recognition and adoption within the crypto community. In a recent move towards greater transparency and collaboration, the Base network has decided to open source its code repositories and smart contracts, reinforcing its commitment to a transparent and community-driven development approach.

Open-Sourcing the Base Network: A Game-Changing Decision

In a blog post, Base revealed its decision to make the entire codebase of its layer-2 network available to developers. The primary motivation behind this open-sourcing initiative is to provide developers with an inside look into the project's development process. Base has not only shared its smart contracts but has also made all its scripts accessible on GitHub. The blog post underlines the importance of open source, stating, "By sharing our work openly, we enable the community to track our progress and ensure that we're living up to our commitments. Open source is a win-win for our onchain future. Builders get access to a trove of knowledge, improve on what's already been done, and in turn inspire others in the space."

Mitigating Risks: Open Source with Caution

While the decision to open source the Base network's code is a significant step towards transparency and collaboration, it does come with inherent risks. The foremost concern is the potential for open-source code to be exploited. However, Coinbase is taking a proactive stance on this front. The exchange is actively encouraging security-focused developers to conduct a thorough examination of the layer-2 network's code, identifying and reporting any vulnerabilities they may come across. To incentivize this security effort, Coinbase has introduced a bug bounty program, offering rewards of up to $1 million for bug identification.

The Base Network's Performance

As Coinbase takes this significant step towards transparency and collaboration, it's worth examining the current state of the Base network. Data from DeFi Llama reveals that the total value locked (TVL) in the Base network has exhibited fluctuations. In September, the network experienced a substantial surge, jumping from a modest $8 million in August to an impressive high of $410 million. However, the network's positive momentum faced a setback, with TVL decreasing to $303.64 million at the time of this report. Alongside this dip in TVL, there has been a notable reduction in trading volume, user numbers, and overall transaction activity on this layer-2 network.

A Step Towards Community-Driven Development

Coinbase's decision to open source the Base network's code marks a pivotal moment in the development of layer-2 solutions. This move not only fosters transparency and collaboration but also underscores the importance of community involvement in shaping the future of blockchain technology. As the Base network navigates its performance challenges, the crypto community eagerly awaits further developments in this dynamic and ever-evolving space.

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