Coinbase CEO Brian Armstrong mentioned on March 6 that his firm’s layer-2 community, Base, will possible function transaction monitoring and anti-money laundering measures.
Base will function compliance measures
Armstrong mentioned throughout an interview with Bloomberg:
“Base has some centralized elements in the present day however it’s going to change into increasingly decentralized over time because it grows. I feel we’ve duties by way of transaction monitoring … issues like that that we’ve to have a look at within the early days.”
Armstrong recommended that centralized actors will possible change into chargeable for avoiding cash laundering and sustaining transaction monitoring applications over time. It’s unclear whether or not Armstrong meant this assertion to use to centralized actors working on Base or to centralized actors usually.
Although Base will probably be open to all builders, Coinbase’s preliminary announcement recommended that Base will probably be a “residence for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will preserve their unique KYC/AML measures.
That earlier announcement additionally recommended that Base will change into “progressively decentralized” however, in doing so, didn’t counsel a scarcity of regulatory compliance.
What Is Coinbase’s Base?
Coinbase initially introduced Base on Feb. 23. At the moment, the corporate mentioned it plans to construct the platform in collaboration with Optimism, an current layer-2 venture for Ethereum. Coinbase will be a part of Optimism as a core developer and use the OP Stack.
The corporate moreover famous at the moment that Base will work with Ethereum itself, different layer-2 networks, and appropriate layer-1 blockchains akin to Solana.
Base is at present in testnet, out there to builders however not but relevant to precise use instances. Coinbase has not introduced a mainnet launch date.
Armstrong famous in the present day that Base is meant to extend scalability and usefulness on Ethereum and associated networks, driving transaction charges down to 1 cent or much less.
Base doesn’t have its personal token, opposite to earlier hypothesis.
