Coinbase CEO Brian Armstrong mentioned on March 6 that his firm’s layer-2 community, Base, will doubtless characteristic transaction monitoring and anti-money laundering measures.
Base will characteristic compliance measures
Armstrong mentioned throughout an interview with Bloomberg:
“Base has some centralized parts immediately but it surely’s going to grow to be an increasing number of decentralized over time because it grows. I feel we’ve got tasks when it comes to transaction monitoring … issues like that that we’ve got to have a look at within the early days.”
Armstrong steered that centralized actors will doubtless grow to be answerable for avoiding cash laundering and sustaining transaction monitoring applications over time. It’s unclear whether or not Armstrong supposed this assertion to use to centralized actors working on Base or to centralized actors typically.
Although Base shall be open to all builders, Coinbase’s preliminary announcement steered that Base shall be a “residence for Coinbase’s on-chain merchandise.” Presumably, any present merchandise that Coinbase integrates with Base will preserve their authentic KYC/AML measures.
That earlier announcement additionally steered that Base will grow to be “progressively decentralized” however, in doing so, didn’t recommend an absence of regulatory compliance.
What Is Coinbase’s Base?
Coinbase initially introduced Base on Feb. 23. At the moment, the corporate mentioned it plans to construct the platform in collaboration with Optimism, an present layer-2 challenge for Ethereum. Coinbase will be 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 at the moment in testnet, accessible to builders however not but relevant to precise use circumstances. Coinbase has not introduced a mainnet launch date.
Armstrong famous immediately 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.