Coinbase Exec: ‘There’s No Playbook’ for Public Company Launching Blockchain

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Leading up to the launch of its innovative Base blockchain this Wednesday, Coinbase, a notable US-based cryptocurrency exchange, engaged in an insightful conversation with Jesse Pollak, the driving force behind the initiative. Here's a condensed version of the insights from the conversation:

Scheduled for release around noon ET (9 am Pacific time), Base, a new "layer 2" blockchain built on Ethereum, is set to rapidly rise in the blockchain landscape.

Before its official unveiling, the new Base network already secured an impressive $133 million in deposits across various apps and protocols, making it the fifth-largest layer-2 blockchain by "total value locked" (TVL), according to crypto analysis firm Dune.

In a recent Zoom talk with CoinDesk, Jesse Pollak, the creator of Base and Coinbase's head of protocols, shared key insights into the strategy, potential revenues, and regulatory considerations of the new blockchain.

Pollak highlighted a crucial point: Coinbase's unprecedented launch of its own blockchain, a path not previously taken by any publicly traded company.

On Coinbase's Vision:
Pollak discussed Coinbase's evolution from its 2012 beginnings as a platform solely for buying and selling Bitcoin. He emphasized Coinbase's core principle of enabling safe and seamless interactions with cryptocurrencies. Their journey through different phases of their "secret master plan," from protocol building to user-friendly interfaces, culminated in Base. This blockchain aims to shift cryptocurrencies from speculative assets to integral elements of daily life, serving as a platform for the next wave of innovation.

Revenue Generation Strategy:
Pollak delved into Coinbase's evolving monetization strategy. While historically facilitating crypto-related actions and charging fees for simplifying complex processes, Coinbase adapts its strategy as the crypto landscape expands. The growing range of crypto utilities provides more opportunities for monetization through Coinbase interfaces.

Monetization and Sequencer Fees:
Pollak stressed that sequencer fees aren't the primary focus. Instead, their goal is to enhance utility, allowing more use cases via Coinbase interfaces. Their focus is on providing trusted experiences and user convenience.

Openness and Decentralization:
Pollak acknowledged Base's open and permissionless nature, extending Ethereum's ethos. He highlighted Base's commitment to preserving decentralization despite unexpected events. Coinbase aims to act as a secure gateway, ensuring user experiences are reliable and safe while nurturing innovation in the crypto space.

Token Strategy:
Pollak clarified that there are no plans for a token on Base. Coinbase concentrates on building a user-friendly platform and an accessible blockchain, avoiding potential complexities that tokens might introduce.

Unprecedented Territory:
Pollak acknowledged the unique challenge of launching a decentralized open permissionless blockchain from a publicly centralized company. With no existing playbook, Coinbase tackled this challenge meticulously, collaborating across all departments to ensure alignment with their values and principles.

In conclusion, the conversation with Jesse Pollak illuminated Coinbase's bold venture into uncharted territory with Base's launch. Their strategy revolves around promoting utility and innovation, intending to integrate cryptocurrencies into daily life while maintaining trust, security, and accessibility.