Key Notes
- Vitalik Buterin backed Coinbase’s Base L2, calling it a model for Ethereum scaling.
- He emphasized that Base is non-custodial and users remain in control of their funds.
- Coinbase’s legal team rejects claims that L2 sequencers should be treated as exchanges.
Ethereum
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co-founder Vitalik Buterin has expressed strong support for Coinbase’s Layer-2 network, Base, calling it a model for how L2 platforms should evolve.
Amid concerns around centralization and whether L2 sequencers are similar to exchanges, Buterin argued that Base maintains decentralization while enhancing user experience.
Addressing Misconceptions About Layer-2 Platforms
According to Buterin, Base relies on Ethereum’s secure base layer to guarantee non-custodial operation, ensuring that users retain control of their funds at all times. The Ethereum co-founder said:
“L2s are non-custodial. They are extensions of Ethereum, not glorified servers. Smart contract logic on Ethereum L1 guarantees that user funds remain under L1 control, preventing theft or censorship by L2 operators.”
He stressed that even if an L2 operator were to shut down, users would still be able to withdraw their assets directly through Ethereum. As a result, Base has the industry’s Stage 1 security standards.
Regulatory Debate and Coinbase’s Position
The existence of Layer-2 protocols has sparked regulatory debates, with US SEC Commissioner Hester Peirce recently citing the potential risks of centralized sequencers functioning like exchanges.
Coinbase’s Chief Legal Officer Paul Grewal, however, countered this view, stating that sequencers are infrastructure providers, not marketplaces.
He drew parallels to Amazon Web Services, adding that just as AWS is not considered an exchange when hosting exchange applications, L2 sequencers should not be classified as such.
The Path Toward Greater Decentralization
Base’s leadership has also revealed early plans to explore a native token, marking a strategic shift toward deeper decentralization.
Coinbase Head of Protocols Jesse Pollak explained that a token could help align incentives and support new governance systems, though details remain in the exploratory phase.
CEO Brian Armstrong clarified that no definitive plans have been made but that the team is openly engaging with the community and regulators.
The Base network has already grown into the second-largest Layer-2 by total value locked, with nearly $16 billion secured and more than 330 million transactions processed in the last month alone.
With a potential new cryptocurrency and a supportive regulatory environment under the Trump administration, Base continues to shine as one of Ethereum’s most significant scaling solutions.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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Source: https://www.coinspeaker.com/vitalik-backs-base-layer2-doing-things-right/
