Coinbase Ethereum Layer2 Network Base’s Four Major Directions for Ecological Fund Support

According to reports, Coinbase Ethereum Layer2 Network Base recently published a blog article announcing four major directions supported by its ecological fund: 1. flat coins that can track inflation rates; 2. On-chain reputation platform; 3. Online Limited Order Book (LOB) trading platform; 4. More secure DeFi, which includes tools that can prevent smart contract code vulnerabilities or protocol logic errors, as well as the ultimate on chain insurance and insurance protocol, or any other product that can provide critical support to users in the event of a smart contract failure.

Base Ecological Fund announces four major support directions, including stable currency

If you’re a cryptocurrency enthusiast, you’ve most probably heard of Coinbase. It is one of the most popular digital currency exchanges worldwide, offering a safe way for people to buy, sell, and trade digital assets like Bitcoin, Ethereum, and more. What you may not know, however, is that Coinbase has a subsidiary called the Coinbase Ethereum Layer2 Network Base, which recently announced its four major directions for ecological fund support.

The Four Major Directions Supported by the Coinbase Ethereum Layer2 Network Base Ecological Fund

The ecosystem surrounding cryptocurrency is constantly evolving, and the Coinbase Ethereum Layer2 Network Base is keen to keep up with the changes by providing support to projects that cater to the following four directions:

1. Flat Coins That Track Inflation Rates

Cryptocurrency is often criticized for being too volatile compared to fiat currency. Flat coins aim to solve this problem by tracking the inflation rates of a particular fiat currency in real-time. This feature will allow people to use such coins for trading and other financial activities without worrying about the drastic fluctuation of value.

2. On-Chain Reputation Platform

There is already a trend towards “proof of reputation,” where entities can build up a reputation by having people vouch for their credibility. The Coinbase Ethereum Layer2 Network Base is supporting this direction by investing in projects that develop on-chain reputation platforms. Such platforms would enable trustworthy and reputable entities to participate in the blockchain ecosystem with ease.

3. Online Limited Order Book (LOB) Trading Platform

An LOB is a tool used to manage buy and sell orders in the financial market. It is a crucial component for cryptocurrency traders, and the Coinbase Ethereum Layer2 Network Base recognizes this need. They aim to support projects that develop an online LOB trading platform.

4. More Secure DeFi

Decentralized finance (DeFi) has been gaining significant traction in recent years, and for good reasons; they offer unprecedented levels of financial freedom and privacy. However, the DeFi sector is also prone to vulnerabilities and risks. The Coinbase Ethereum Layer2 Network Base is backing projects that provide tools that can prevent smart contract vulnerabilities and errors while also offering on-chain insurance and insurance protocols.

The Bottom Line

The Coinbase Ethereum Layer2 Network Base’s investment in the four major directions for ecological fund support is a testament to its commitment to providing a safer, more secure, and more efficient blockchain ecosystem. As the ecosystem continues to evolve, the Coinbase Ethereum Layer2 Network Base will likely keep up with the changes and offer support where it is needed.

FAQs

1. What is Coinbase Ethereum Layer2 Network Base?

Coinbase Ethereum Layer2 Network Base is a subsidiary of Coinbase, which aims to address the scaling issues and improve the Ethereum blockchain’s efficiency and speed.

2. What is DeFi?

Decentralized Finance (DeFi) is a blockchain-based financial system that offers traditional financial services like loans, insurance, and trading in a decentralized manner.

3. What is an LOB?

Limited Order Book (LOB) is a tool used to manage buy and sell orders in the financial market. It is widely used by traders to manage their trading strategies.