TL;DR Breakdown
- Base, a layer 2 blockchain under Coinbase, completes six months of extensive internal and external security assessments.
- Coinbase hired 100 experts to examine the network’s code as part of an audit contest. The Code4rena challenge lasted 14 days.
- Base has not provided a date for the mainnet launch and has stated it will not have a native token.
Description
Base, the layer 2 blockchain developed by Nasdaq-listed crypto exchange Coinbase (COIN), has completed a series of security audits as it prepares to launch its mainnet with the goal of attracting up to 1 million new crypto users in the coming years. The team announced on June 29 that the Optimism-powered, Ethereum-secured network had undergone … Read more
Base, the layer 2 blockchain developed by Nasdaq-listed crypto exchange Coinbase (COIN), has completed a series of security audits as it prepares to launch its mainnet with the goal of attracting up to 1 million new crypto users in the coming years.
The team announced on June 29 that the Optimism-powered, Ethereum-secured network had undergone six months of extensive internal and external security assessments, the second-to-last launch requirement.
Coinbase team tests for vulnerabilities
Base, which is built on the OP stack in conjunction with Optimism, was revealed earlier in 2023. According to a news release, Coinbase commissioned a six-month internal assessment from its protocol security team to battle-test the blockchain and the OP stack’s security.
To detect potential vulnerabilities and security threats, the team analyzed all of Optimism’s pre-deployments and smart contracts on both layer 1 and layer 2. According to a blog post by Coinbase, more than 100 people recently examined the network’s code as part of an audit contest. Experts couldn’t find any major problems in the network’s architecture across the board.
The more eyes we can get on a codebase, the better. We […] are happy to report there were no significant vulnerabilities discovered.
Coinbase
The Code4rena challenge lasted 14 days and tasked participants with looking into flaws in the network’s smart contracts, bridges, and other areas. According to Code4rena’s page for Base, which shows no results, $100,000 in stablecoin USDC was eventually up for grabs in rewards, which no one appears to have received.
Engagement with Coinbase’s audit contest for Base was reportedly high, and the exchange is still sifting through all of the submissions it received while working to resolve “informative or minor issues” that were brought to light.
Coinbase also employed a technique known as fuzzing, which consists of automating the injection of malformed code into existing code in order to discover implementation bugs. The layer 2 blockchain bridge to layer 1 and the sequencer utilized this technique.
Cross-chain bridges are used to move assets from one blockchain to another and are a prevalent vector of attack for hackers and exploiters. Chainalysis, a security firm, estimated that $2 billion was misappropriated through crypto bridges in 2022.
According to a previous post from Base, “testnet stability” is the ending criterion that must be met prior to mainnet launch.
What to expect from the Base layer 2 mainnet launch
Layer-2 solutions are intended to make transactions on networks such as Ethereum cheaper and more efficient by processing transactions in a separate space and then relaying the results back to the respective network.
Base’s latest round of scrutiny follows security evaluations from Spearbit and Sherlock, according to Coinbase, which adds that its Protocol Security team has already reviewed these findings.
Base stated that they are confident due to the absence of critical code defects adding that:
With the completion of these audits, we’ve now fulfilled ⅘ of our criteria for mainnet launch […] completing these in-depth security workstreams without discovering critical severity bugs gave the Base team confidence to proceed towards mainnet launch.
Base
Base has not provided a date for the launch of the mainnet. Unlike other layer 2 blockchains such as Polygon, Optimism, and Arbitrum, it has stated that it will not feature a native token.
As Coinbase seeks to diversify its revenue beyond its reliance on trading fees derived from customer transactions, it has prioritized subscriptions and services such as staking. In March, the company announced “Wallet as a Service,” which is anticipated to integrate with Base as a means for companies to integrate digital wallets into their applications.
When Base was announced in February, Coinbase stated that the network would house its future on-chain offerings. It also expressed optimism that Base will become a popular ecosystem for developers, attracting projects to the emerging layer-2 network.
Coinbase mentioned at the end of March that they desire an inflation-pegged “flatcoin,” an on-chain reputation system, and an on-chain limit order book exchange to be implemented on Base. Many in the crypto community have viewed the development of Base as a “massive vote of confidence for Ethereum.”
Base seeks to become a network for constructing decentralized applications. It is based on Ethereum and is powered by layer-2 network optimism.