Coinbase CEO Brian Armstrong stated 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 stated throughout an interview with Bloomberg:
“Base has some centralized parts right now nevertheless it’s going to turn out to be increasingly more decentralized over time because it grows. I believe we’ve duties by way of transaction monitoring … issues like that that we’ve to have a look at within the early days.”
Armstrong instructed that centralized actors will doubtless turn out to be accountable for avoiding cash laundering and sustaining transaction monitoring applications 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 “house for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will keep their unique KYC/AML measures.
That earlier announcement additionally instructed that Base will turn out to be “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 mission 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 suitable layer-1 blockchains corresponding to Solana.
Base is at present 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 now 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.