Coinbase Wants to Get Txns On Ethereum “Down to a Penny or Less”

Lavina Daryanani
Source: CoinStats

The cryptocurrency landscape has been evolving, yet, there is not much regulatory clarity in the U.S. Post the collapse of FTX, investor protection has taken the center stage, and stalwarts from the space have been demanding regulatory soundness.

In a recent podcast interview with Bloomberg, Coinbase CEO Brian Armstrong stressed that centralized players like Coinbase should be regulated. However, he was quick to add that decentralization is gradually being “embraced” at Coinbase. The executive revealed,

We have a number of different products and legal entities, and different ones working in various areas.

Base to foster Coinbase’s decentralization ambitions

Recently, the firm launched its own Ethereum-based L2 network on the testnet. The solution offers a secure, low-cost, developer-friendly way for users to build dApps. Going forward, Base is expected to become even more decentralized. Specifically, Armstrong said,

“Base has some centralized components today, but it’s going to be more and more decentralized over time as it grows.”

Also Read: 10 Reasons Why Coinbase’s Ethereum L2 ‘Base’ Is a “Big Deal”

Elaborating on Coinbase’s goal, the executive pointed out,

Our goal with that is really to help provide more scalability and, and better usability for layer-2 solutions. So we want to get transactions in Ethereum down to a penny or less.

According to the executive, the firm’s current responsibilities revolve around transaction monitoring and similar tangents. However, as the solution matures and marches towards decentralization, things will change. He said,

“But as it decentralizes, I think that again, the centralized actors are the ones that are probably going to have the most responsibility there to avoid money laundering issues, and having transaction monitoring programs, things like that.”

In fact, that is not it. Several in the ecosystem believe that Base’s launch could prove beneficial to Coinbase over the long term. In a recent explainer thread on Twitter, Tom Dunleavy, Former Senior Analyst at Messari, highlighted how Base could go on to double Coinbase’s revenue and profits this year.

Also Read: ‘Base’ May Double Coinbase’s Revenue in 2023: Analyst