Key Insights:

• Coinbase’s Base Network integrates with Chainlink, drastically improving smart contract scalability and reducing dApp development costs.
• Chainlink collaboration boosts Base Network with cost-effective features, enabling diverse and scalable applications for developers.
• Amidst technological advancements, Coinbase navigates legal challenges with the SEC, potentially reshaping US cryptocurrency regulations.

Base, an Ethereum Layer-2 network developed by Coinbase, has recently announced a significant integration with Chainlink Automation. This strategic move is set to revolutionize the decentralized application (dApp) development landscape. By leveraging Chainlink’s capabilities, Base aims to significantly improve its smart contract scalability, offering a robust solution for developers within its ecosystem.

The integration allows Base network developers to access Chainlink’s decentralized and verifiable smart contract tools easily. This collaboration is not just a step forward in enhancing decentralization but also brings considerable cost savings. Chainlink Automation has been noted for its ability to reduce gas fees by up to 90%, providing a substantial economic advantage for developers engaging in intensive operations.

Chainlink’s Diverse Features Boosting Base’s Ecosystem

Moreover, Chainlink Automation extends its utility beyond just cost reduction. It offers a variety of features to Base developers, particularly those aiming to employ a single, smart contract across multiple dApps. The synergy between Base and Chainlink goes further, allowing developers on the Base network to utilize other facets of the Chainlink platform, such as Data Feeds and the Cross-Chain Interoperability Protocol (CCIP). This integration equips developers with the tools to build sophisticated and scalable solutions, considering the expansive nature of today’s digital applications.

Jesse Pollak, Base Creator and Head of Protocols at Coinbase emphasizes the scalability benefits this integration brings. By offloading intensive operations to Chainlink, developers on Base can now explore and develop a wider array of use cases, pushing the boundaries of what’s possible within the blockchain space.

Rapid Adoption and Growth of Base Network

Since its public launch in August, following an initial testnet release in February, and a developer-focused launch in July, Base has seen a rapid uptake in the blockchain community. The network, designed as a layer 2 roll-up solution, processes transactions off the Ethereum network before syncing them back, thus enhancing efficiency and accessibility. At its launch, Pollak announced the readiness of nearly 100 dApps for deployment on Base, indicating a strong initial interest.

Following its public release, BaseScan reported nearly 2 million transactions on the platform as of September 14, 2023. This growth was further bolstered by the launch of Circle’s native USDC stablecoin on Base, adding to its credibility and utility.

Coinbase’s Legal Landscape with the SEC

Amidst these technological strides, Coinbase continues to navigate its legal challenges with the United States Securities and Exchange Commission (SEC). A recent hearing presided over by New York District Judge Katherine Polk Failla focused on classifying crypto tokens listed on exchanges as securities. While Coinbase’s legal team, led by William Savitt, argues that secondary sales do not qualify as securities under the Howey Test, the SEC maintains a different stance. The outcome of this legal battle is poised to be a landmark decision, potentially reshaping the regulatory landscape for cryptocurrencies in the United States.

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