Base, an Ethereum Layer 2 (L2) solution developed by Coinbase, has partnered with Chainlink to integrate its price feeds into the Base testnet. The integration is aimed at providing secure, off-chain price feeds for decentralized application developers in the crypto sector.
Base hopes that this partnership will help it to become a leading L2 solution in the Ethereum blockchain ecosystem by providing developers with secure off-chain data sources from Chainlink to effectively build decentralized applications. Jesse Pollak, project lead at Base, expressed his delight at the new development, stating how important it is for the company to partner with crypto giants like Chainlink.
New Partnership and Developments
Last week, Coinbase announced that it would be launching its own Ethereum L2 solution called Base, which sparked an upturn in Coinbase’s stock price, rising by almost 10% to $64.83 per share immediately after the news broke. Base was developed to scale transactions on the Ethereum (ETH) network, making it significantly faster. L2 networks like Base process transactions in batches as opposed to individual processing of transactions on the Ethereum network.
These transactions will be processed on a separate network and then relayed back to their main network in relayed form, thereby increasing the speed and reducing the costs of transactions on the Ethereum network. Meanwhile, Chainlink’s LINK token experienced a positive February in terms of price action and developments. The crypto-based oracle recently secured a partnership with Archblock, the issuer of the stablecoin TUSD, to use Chainlink’s proof-of-reserves to secure minting, improve transparency, and enhance reliability.
The partnership between Base and Chainlink highlights the increasing importance of L2 solutions in the Ethereum blockchain ecosystem. As the demand for faster and more efficient transactions continues to grow, the integration of off-chain data sources like Chainlink’s price feeds will play a crucial role in the development of decentralized applications. This partnership is a positive step forward in achieving this goal and will likely attract more developers to Base’s platform.