Coinbase’s Layer-2 Base Network to Enhance Decentralization with Fault Proof Mechanism

Coinbase’s Layer-2 Base Network to Enhance Decentralization with Fault Proof Mechanism

Coinbase’s Layer-2 Ethereum network, Base, is set to advance its decentralization with the implementation of permissionless fault proofs on October 30. Announced in an October 23 post by the Base team, this upgrade will reduce the reliance on single-entity control and boost network security.

How Fault Proofs Will Transform Base

Fault proofs enable users to contest potentially incorrect or fraudulent transactions on Ethereum Layer-2 networks. By allowing anyone to propose or dispute network state claims, Base aims to shift away from centralized verification. This system will also affect transaction finality, requiring proof verification for withdrawals. Additionally, the DisputeGameFactory contract will replace the previous L2OutputOracle, further enhancing security protocols.

The Base network has recently surged in activity. Data from Artemis reveals a significant rise in daily active addresses, jumping from 326,000 in May to 1.4 million in October—an increase of over 400%. Daily transactions also doubled in five months, rising from 65.9 million in May to 137.6 million by September, marking Base as the most active Layer-2, handling 42.5% of all transactions in Q3 2024.