- Coinbase has been experiencing a heightened level of activity on its Ethereum Layer-2 network, Base, primarily due to the upcoming launch of its cutting-edge smart wallet.
- This surge has significantly boosted the total value locked (TVL) in Base’s decentralized finance (DeFi) applications to an all-time high.
- Experts are keenly watching the developments, particularly noting the integration of innovative account abstraction technology.
Discover how Coinbase’s new smart wallet is set to revolutionize the Ethereum Layer-2 ecosystem and attract millions of new users by simplifying on-chain transactions.
Base Outperforms Competitors in Just 90 Days
Over the past three months, Coinbase’s Base network has outpaced significant layer-2 solutions like Arbitrum and Optimism. Base’s TVL impressively jumped by 465% to reach $7.41 billion. In comparison, Arbitrum experienced a modest 13% growth, while Optimism saw a 12% decline. The remarkable surge in Base’s activity is largely due to the March implementation of EIP-4844, which introduced proto-danksharding technology to cut gas fees for layer-2 platforms.
The imminent launch of Coinbase’s smart wallet is designed to ease users’ transition from centralized exchanges to decentralized applications (dApps) by leveraging account abstraction, thereby enhancing user experience and eliminating potential confusion.
Understanding Account Abstraction
Account abstraction is a breakthrough technology that allows users to delegate transaction initiation on the Ethereum blockchain or a Layer-2 network to a third party. This innovation enhances user interactions, facilitating features like gasless transactions, pre-authorized payments, and one-click operations, significantly simplifying blockchain transactions.
Key Insights for Users
• Base’s TVL growth has dramatically outstripped that of Arbitrum and Optimism.
• The EIP-4844 implementation has played a critical role in reducing gas costs, thereby boosting Base’s network activity.
• Coinbase’s smart wallet aims to simplify the user experience with account abstraction, easing the shift to decentralized applications.
• The wallet is anticipated to attract tens of millions of new users to the ecosystem.
Conclusion
Although Coinbase’s smart wallet is currently in the testing phase, its potential market impact is immense, given Base’s recent exponential growth. While the official mainnet launch date is yet to be announced, the combination of innovative technology and proven network performance is generating substantial excitement and expectations.
