Coinbase wants devs to build inflation-pegged ‘flatcoins’ on its new ‘Base’ network

Summary

Crypto exchange Coinbase has identified four key areas of innovation to build on its layer-2 network Base. Its areas of focus include an inflation-pegged flatcoin, to track the rate of inflation and provide users with stability in purchasing power while avoiding the economic uncertainty caused by central banks. Coinbase is also interested in the development of an on-chain reputation system to establish trust among users, a limit order book exchange to offer professional traders and institutions a new trading venue to execute trading strategies and decentralized finance safety tools to protect against smart contract code vulnerabilities and protocol logic errors.

Coinbase, one of the leading cryptocurrency exchanges, has recently announced its new project, ‘Base’, wherein it has invited developers to build inflation-pegged ‘flatcoins’ on its blockchain network.

The ‘Base’ blockchain protocol aims to enable tokens to be built and exchanged, with the value of each token being equivalent to the US dollar. This means that users can buy and sell tokens without worrying about the volatility of cryptocurrency markets or the value of the dollar.

In a blog post, Coinbase said that developers could use the ‘Base’ platform to create their own inflation-pegged ‘flatcoins’, which could be used as stablecoins or digital representations of fiat currencies. The platform will support several fiat currencies, including the US dollar, British pound, euro and yen, allowing users from around the world to participate.

Coinbase has assured that the platform will be open-source and that it will provide full support for developers to build their tokens. The exchange has also said that it will not charge any fees for building or using the platform, making it an attractive option for developers who want to build tokens but who do not want to pay high fees.

The move is part of Coinbase’s strategy to expand its offerings beyond just trading cryptocurrencies. It is also an attempt to attract more institutional investors to cryptocurrency markets, who might be hesitant to invest in volatile cryptocurrencies but are willing to invest in stablecoins.

The ‘Base’ network is still in its early stages and is yet to be launched. However, the announcement has already generated a lot of excitement in the cryptocurrency community, with many developers expressing interest in building tokens on the platform.

Overall, Coinbase’s move into stablecoin territory with the ‘Base’ network is a big step forward for the cryptocurrency industry, which has struggled with volatility and instability. If successful, the ‘Base’ network could soon become a pivotal player in the world of stablecoins and digital tokens.

Original Source: cointelegraph.com