Base is a blockchain that was launched by Coinbase to give an alternative for Ethereum Blockchain users with a new blockchain that is more efficient and scalable.
The plan behind this blockchain was to launch that would help Ethereum process its transactions faster and cheaper, giving users a better experience when using the Ethereum Ecosystem of DApps or Decentralized Applications.
However, the interesting thing is that the blockchain does not have its own cryptocurrency whatsoever, aside from the tokens and coins that was created on top of it by the DApps that are built on top of it.
This has led many users to be confused as to why they do not have their own crypto as it might make the process harder when transacting.
Analyzing The Non-Existing Token of The Base Blockchain
The first misconception around the blockchain is that there is a token called BASE that is used as a utility token for the Base Blockchain.
While this is not entirely wrong, the BASE that people are talking about is not the utility token of the Base Blockchain that was created by Coinbase, as it is used on another blockchain called base that is not related to this Base Blockchain whatsoever.
This confuses people as the question of gas fees started circulating in the market. If a blockchain has no coins or tokens, then how do the users pay for the blockchain and how does the validator get a reward?
The answer is simple, by using ETH which is the native coin of the Ethereum Blockchain. When paying for transactions on the Base Blockchain, people pay in the form of ETH but cheaper and the validators will receive those ETH so they are still rewarded.
This makes sense as one of the focuses of the Base Blockchain is to help Ethereum with its transactions so it makes sense to use ETH as the gas token.
Aside from this there are no clear explanations yet on why the blockchain does not have its own token, but one thing comes to mind when analyzing this strategy, which is the long term sentiment.
Long Term Sentiment
If there are no tokens or coins involved then the blockchain is free of being dependent on its own cryptocurrency when looking into its sentiment.
Often enough most of the blockchains transaction volume in the crypto space usually goes down when the token or coin price itself starts going down significantly.
This might be one of the reasons as to why the Base Blockchain does not have its own token or coin whatsoever.
If the Base Blockchain decides to release its own coin, then there will be a possibility that in the long run if the coin’s price goes down, then not many people want to use the blockchain anymore.
By having no coin involved, the blockchain solely relies on its infrastructure so that users will use it if the blockchain is good and stable.
Looking at the current condition of this blockchain, it can be seen that the blockchain is relatively stable with transactions going high, reaching the third spot in most Ethereum transactions processed just trailing below Arbitrum and going head to head with Optimism.
Another aspect to look at is the focus on DApps that are built on top of it. By not creating any coins, users will have to focus on the DApp’s token when using DApps on the Base Ecosystem.
This creates less chances of confusion when marketing the DApp itself, leading to a more significant growth of the Base Ecosystem.
The last thing that might be the reason why the blockchain does not have any token is the fact that it wants to support Ethereum fully, so that every blockchain fee transactions should be done in ETH.
Overall, there is no clear statement yet on why the blockchain does not have its own crypto, but these reasons might be able to back the strategy that they are currently implementing.
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