Coinbase CEO Brian Armstrong mentioned on March 6 that his firm’s layer-2 community, Base, will seemingly 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 immediately nevertheless it’s going to change into increasingly decentralized over time because it grows. I believe we’ve duties when it comes to transaction monitoring … issues like that that we’ve to take a look at within the early days.”
Armstrong recommended that centralized actors will seemingly change into accountable for avoiding cash laundering and sustaining transaction monitoring packages over time. It’s unclear whether or not Armstrong supposed this assertion to use to centralized actors working on Base or to centralized actors generally.
Although Base can be open to all builders, Coinbase’s preliminary announcement recommended that Base can be a “dwelling for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will keep their authentic KYC/AML measures.
That earlier announcement additionally recommended that Base will change into “progressively decentralized” however, in doing so, didn’t recommend 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 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 suitable layer-1 blockchains akin to Solana.
Base is at the moment in testnet, accessible to builders however not but relevant to precise use instances. Coinbase has not introduced a mainnet launch date.
Armstrong famous immediately 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.
