Base is a massive step for Coinbase into Web3, and a critical part of their "Master Plan" 😳; BREAKING: BNPL can be profitable! 🤯; Decentralized Twitter in the making. But not from Twitter! 👀
FinTech is Eating the World, 28 February
Hey Everyone,
Happy Tuesday! Today’s issue is the best one yet. We’re going to look at Base, which is a massive step for Coinbase into the world of Web3 (& why it’s a critical part of their "Master Plan" + a deeper dive into Coinbase), the revelation that BNPL can be profitable (& how), and decentralized Twitter that’s already in the making (but it’s not from Twitter + why it could be huge). Let’s jump straight into the spicy stuff 🌶
Base is a massive step for Coinbase into the world of Web3, and a critical part of their "Master Plan" 😳
The launch 🚀 Crypto heavyweight Coinbase COIN 0.00%↑ recently announced a new Layer 2 network (a secondary framework or protocol that is built on top of an existing blockchain system), dubbed Base.
This is a huge move from a crypto exchange pioneer that could have massive and wide-ranging implications, so let’s take a closer look at what it’s all about.
The USP 🥊 Base is built on the open-source OP Stack, a blueprint for compatible blockchain Layer 2 networks that was created by Optimism.
Contrary to other Layer 2 network developers, Coinbase isn’t going live with a dedicated token for Base. Instead, to support the new network, Coinbase unveiled a new ecosystem fund in conjunction with its venture arm.
Zoom out 🔍 According to Coinbase, the goal with Base is to launch a platform that makes it really easy for developers to build apps that users actually want to use and then plug that into the Coinbase product suite to make it really easy for users to use those apps.
In other words, Coinbase wants to control not only the consumer layer of crypto (=exchange) but also the infrastructure layer (=the blockchain).
Hence, with the launch of Base, Coinbase effectively became another stakeholder in the push to scale Ethereum. We can remember that at the core, Layer 2 networks are designed to enable more transaction capacity and capabilities in conjunction with the main chain.
Why is this important? 🤔 Base is a massive step for Coinbase into the world of Web3. But more importantly, it’s a critical part of the "Master Plan" for a global open financial system, the vision that Coinbase CEO Brian Armstrong laid out back in 2016.
Let’s unpack it so we could understand its importance.