Coinbase CEO Brian Armstrong stated on March 6 that his firm’s layer-2 community, Base, will possible characteristic transaction monitoring and anti-money laundering measures.
Base will characteristic compliance measures
Armstrong stated throughout an interview with Bloomberg:
“Base has some centralized parts right this moment but it surely’s going to change into an increasing number of decentralized over time because it grows. I feel now we have obligations when it comes to transaction monitoring … issues like that that now we have to have a look at within the early days.”
Armstrong instructed that centralized actors will possible change into accountable 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 generally.
Although Base can be open to all builders, Coinbase’s preliminary announcement instructed 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 instructed that Base will change 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 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 suitable layer-1 blockchains akin to Solana.
Base is at the moment in testnet, out there to builders however not but relevant to precise use instances. Coinbase has not introduced a mainnet launch date.
Armstrong famous right this 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.
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