Coinbase CEO Brian Armstrong stated on March 6 that his firm’s layer-2 community, Base, will doubtless function transaction monitoring and anti-money laundering measures.
Base will function compliance measures
Armstrong stated throughout an interview with Bloomberg:
“Base has some centralized elements at the moment however it’s going to develop into increasingly more decentralized over time because it grows. I feel we have now tasks by way of transaction monitoring … issues like that that we have now to take a look at within the early days.”
Armstrong advised that centralized actors will doubtless develop into liable for avoiding cash laundering and sustaining transaction monitoring packages over time. It’s unclear whether or not Armstrong meant this assertion to use to centralized actors working on Base or to centralized actors on the whole.
Although Base can be open to all builders, Coinbase’s preliminary announcement advised that Base can be a “dwelling for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will preserve their authentic KYC/AML measures.
That earlier announcement additionally advised that Base will develop into “progressively decentralized” however, in doing so, didn’t recommend a scarcity of regulatory compliance.
What Is Coinbase’s Base?
Coinbase initially introduced Base on Feb. 23. At the moment, the corporate stated it plans to construct the platform in collaboration with Optimism, an current layer-2 undertaking for Ethereum. Coinbase will be a part of Optimism as a core developer and use the OP Stack.
The corporate moreover famous at the moment that Base will work with Ethereum itself, different layer-2 networks, and appropriate layer-1 blockchains corresponding to Solana.
Base is presently in testnet, out there to builders however not but relevant to precise use circumstances. Coinbase has not introduced a mainnet launch date.
Armstrong famous at the moment that Base is meant to extend scalability and usefulness on Ethereum and associated networks, driving transaction charges down to at least one cent or much less.
Base doesn’t have its personal token, opposite to earlier hypothesis.