Cryptocurrency exchange Coinbase Global Inc. expanded its blockchain developer tools today with Base, an Ethereum Layer 2 network that offers a secure, low-cost and developer-friendly way for builders to construct and deploy decentralized apps.

A Layer 2 blockchain is a separate chain that operates alongside another, in the case of Base it works with Ethereum, to process transactions more quickly, lower fees and add features. Layer 2 blockchains are often used to increase the scalability of other blockchains that can slow down or become overwhelmed with a large number of transactions caused by an increasing number of decentralized apps, or dapps.

“Our goal with Base is to make onchain the next online and onboard one billion users into the cryptoeconomy,” said Jesse Pollak, head of Base and protocols lead at Coinbase in a blog post. “In pursuit of this goal, Base will serve as both a home for Coinbase’s onchain products and an open ecosystem where anyone can build.”

Base is being launched as a testnet to give developers a chance to try it out before it is fully launched.

The new blockchain is fully compatible with Ethereum’s virtual machine standards, run at 10% of the cost and gives developers access to application programming interfaces for rapid app development. With the tools and capabilities available on Coinbase, builders will be able to rapidly connect to Base and get building multichain applications with easy-to-use bridges.

Because Base is incubated within Coinbase, developers will be provided direct access to all of the company’s products directly and can engage with already existing tools. For example, developers can connect to other blockchains through Coinbase Cloud and host blockchain infrastructure using Node.

Coinbase itself intends to use Base as a foundation for its own on-chain products as well as an open ecosystem to onboard more developers to its products and bring them into the blockchain industry itself. The Coinbase ecosystem of products serves more than 110 million verified users and provides access to more than $80 billion in assets on its platform.

Base focuses on decentralization, a central tenet of all crypto, and is deployed using the open-source OP Stack in collaboration with OP Labs and the Optimism Collective. This allows Base to become part of what is known as a “superchain,” a network of Layer 2 blockchains that can interoperate by sharing security, communication and a common development layer.

Developers using Base will be able to use dapps on more than just Base and Ethereum. It will be able to interoperate with numerous other L2 and L1 ecosystems such as Bitcoin, Solana and Cosmos. Coinbase wants developers to view Base as “a bridge, not an island.”

“Decentralization is essential for the cryptoeconomy to remain open, global, and accessible to everyone,” said Pollak. “While we’ve begun incubating Base inside of Coinbase, we are deeply committed to progressing toward full decentralization over the years ahead.”

Alongside the launch of Base, Coinbase also announced the Base Ecosystem Fund, which will invest in early-stage projects building on Base. Developers looking to build on the new blockchain can apply on the website.

Image: Coinbase