Coinbase's Base Network Achieves Stage 1 Status, Enhances Decentralization

Coinbase’s Base Network has achieved ‘Stage 1’ status, marking a significant step towards full decentralization. This transition means that the network will now have a security council composed of ten independent entities selected from the Base and broader Ethereum ecosystems. These entities will be responsible for approving certain network upgrades if necessary, reducing the network's reliance on centralized control.

The move to ‘Stage 1’ status aligns with a framework proposed by Ethereum co-founder Vitalik Buterin. In his 2022 blog post, Buterin categorized platforms based on their degree of decentralization, with ‘Stage 1’ rollups relying on certain guardrails or "limited training wheels" to balance security and speed. Buterin later expressed concerns about the security of rollups and stated that he would only publicly discuss a layer-2 network if it had reached at least ‘Stage 1’ status.

Base, launched by Coinbase in August 2022, has since grown to become the largest rollup, with a significant amount of value locked in the protocol. The achievement of ‘Stage 1’ status means that Base will now be less dependent on Coinbase, enhancing its decentralization and security. Additionally, fault proofs on Base are now permissionless, allowing anyone to verify or check the state of transactions without relying on a central entity.

This development is part of a broader trend in the layer-2 ecosystem, where other networks have also reached ‘Stage 1’ status. The transition to a more decentralized structure is expected to reduce centralization risks and enhance the overall security and reliability of the Base Network. The security council and permissionless fault proofs are key components of this decentralization effort, ensuring that the network can operate independently and securely.