“`html
Coinbase’s Ethereum-based Layer-2 blockchain, known as Base, is on the verge of enhancing its decentralization efforts through the introduction of fault proofs. The Base team made an announcement on October 23 via their X account, declaring that permissionless fault proofs will be implemented on October 30. The primary objective of this update is to eliminate the possibility of single-entity control, thereby bolstering the overall security of the network.
Understanding Fault Proofs
Fault proofs function as a mechanism that empowers users to contest potentially fraudulent or erroneous transactions within Ethereum Layer-2 networks. By allowing any participant to assert claims regarding the state of the network and to dispute invalid withdrawals, Base aims to undermine its dependency on centralized authorities.
Previously, the responsibility for proposing and validating the network state rested solely with a centralized entity. However, the forthcoming changes will enable any user to make claims and challenge fraudulent activities, significantly enhancing decentralization and community involvement.
Impact on Withdrawals
The introduction of fault proofs will affect the withdrawal process. The method for verifying and finalizing transactions will be adapted to align with the new fault-proof system. Additionally, the existing ‘L2OutputOracle’ will be replaced by a new contract called ‘DisputeGameFactory,’ which is expected to elevate security measures involved in withdrawals.
For withdrawals initiated prior to the upgrade, there may be a challenge period lasting up to seven days. Withdrawals undertaken after the upgrade will also adhere to a seven-day wait time, but they could experience delays if challenges arise during that period.
Base’s Position in the Layer-2 Ecosystem
Developed using Optimism’s OP Stack, Base draws inspiration from the successful implementation of fault proofs on Optimism’s flagship blockchain, OP Mainnet. Both networks are integral components of the Superchain ecosystem, which includes a network of interconnected Layer-2 solutions.
As of now, CoinGecko reports that Base has achieved a total value locked (TVL) of $2.4 billion, solidifying its status as the largest Ethereum Layer-2 chain by TVL, surpassing competitors like Arbitrum (ARB) and Polygon (MATIC).
Surging Activity in Q3 2024
The third quarter of 2024 has seen Ethereum Layer-2s experience increased transactional activity, with Base leading as the most active Layer-2 network, accounting for an impressive 42.5% of all transactions during this period.
The rise in user engagement is further highlighted by data from Artemis, indicating that the number of daily active addresses on the Base blockchain climbed dramatically from 326,000 in May to 1.4 million by October, a staggering increase of over 400% in less than six months.
Similarly, the daily transaction volume saw significant growth during this time frame. In May, daily transactions were recorded at 65.9 million; by September, this figure surged to 137.6 million, reflecting an astonishing growth of over 100%.
The advancements in Base’s system and the surge in user activity signify a robust future for the Base blockchain as it continues to evolve within the dynamic Layer-2 landscape.
“`