Coinbase CEO Brian Armstrong mentioned on March 6 that his firm’s layer-2 community, Base, will seemingly function transaction monitoring and anti-money laundering measures.
Base will function compliance measures
Armstrong mentioned throughout an interview with Bloomberg:
“Base has some centralized parts as we speak but it surely’s going to grow to be increasingly decentralized over time because it grows. I feel we’ve got tasks by way of transaction monitoring … issues like that that we’ve got to take a look at within the early days.”
Armstrong advised that centralized actors will seemingly grow 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 will likely be open to all builders, Coinbase’s preliminary announcement advised that Base will likely be a “dwelling for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will preserve their unique KYC/AML measures.
That earlier announcement additionally advised 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 current layer-2 venture 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 appropriate layer-1 blockchains resembling Solana.
Base is at present in testnet, accessible to builders however not but relevant to precise use circumstances. Coinbase has not introduced a mainnet launch date.
Armstrong famous as we speak that Base is meant to extend scalability and value on Ethereum and associated networks, driving transaction charges down to 1 cent or much less.
Base doesn’t have its personal token, opposite to earlier hypothesis.
