Base, a Layer 2 scaling solution from Coinbase, has seen a spike in chain usage amid falling fees. Several applications on Layer 2 have contributed to increased activity.
Base recently announced plans to further decentralize with the launch of “fault proof” – a mechanism that ensures that incorrect information is not transmitted to Ethereum – on the Base Sepolia testnet in mid-July.
Optimism-based Chain Layer 2 uses fault proof to prevent operators from transferring incorrect transaction data to Layer 1. In the case of Base, this will prevent Layer 2 operators from transferring incorrect data to Ethereum and further decentralize the withdrawal mechanism of the scaling solution.
The new mechanism will promote:
- Suggested output without licensing: Chain Layer 2 has no fault proof only allowing proposers to focus on creating and sending output on the chain’s state. With deployment, any operator on the chain can propose requests or status updates. This helps create an open and permissionless environment where many participants can contribute to maintaining and managing the chain to minimize dependence on a single centralized party, thereby making it possible to Enhance the security, transparency and certainty of Layer 2 solutions.
- Challenges that do not require licensing for output proposals: If someone makes a fraudulent claim, any operator can contest it. Users can withdraw funds from the Base chain to the Layer 1 chain without relying on a centralized agent. In systems without fault proofs or similar decentralized mechanisms, making fraudulent claims can be a serious problem, as it can lead to loss of assets or problems. Other security issues. However, with permissionless challenge capabilities, any operator in the ecosystem can proactively test and challenge these requirements. This creates a more transparent and secure environment, helps protect users from fraud, and helps ensure fairness in transactions. In addition, the ability to withdraw funds from the Base to a Layer 1 chain without relying on a centralized party also benefits users in terms of independence and convenience, providing flexibility. in the management and use of digital assets
Data from TokenTerminal shows that from Q1 to Q2 2024, Base usage spiked amid falling fees from Q1 to Q2. Several applications contributed to increased utility, including Uniswap, Frenpet, 1inch, Circle and Tarot Finance among others.
Source: TokenTerminal
Increased activity signals user demand for the chain and growing relevance among market participants.
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