Coinbase’s Base has revealed when it plans to implement fault proofs.

The move represents a significant milestone in the network’s decentralization roadmap.

Observers see Base’s edge in the Layer 2 space growing.

In just over a year, the Coinbase-incubated Layer 2 chain Base has arguably risen to the top of the pile in the Ethereum Layer 2 space, recently leapfrogging longtime leader Arbitrum to become the largest Layer 2 by market capitalization. Despite this success, the network has consistently drawn criticism for one reason: its lack of decentralization.

Ideally, Layer 2 chains should scale the base chain in a “trust-minimized way,” at least according to L2Beat, a research and analytics platform dedicated to Layer 2 chains. However, this has not been the case for most Layer 2 solutions, including Base—a status quo that the Coinbase-incubated chain is now looking to take the first step toward changing.

Coinbase’s Base Reveals Date To Implement Fault Proofs

Coinbase’s Base has revealed plans to take its first major step towards decentralization. In an X post on Wednesday, October 23, the team behind the project disclosed that it planned to implement fault proofs on October 30, a significant step towards reducing its reliance on trusted intermediaries.  Sponsored

Fault proofs are cryptographic proofs generated by verifiers (blockchain participants that check the validity of network transactions) when network operators try to pass incorrect transaction data from the Layer 2 chain to the base chain. As such, the fault proof system helps keep the Layer 2 chain honest.

As highlighted by the Base team, the system’s implementation means that any user can now participate in maintaining the network’s integrity through a “challenge” process that usually concludes in seven days. If a fault proof is generated at the end of this period, the fraudulent transactions are removed from the batch.

With the fault proofs upgrade, Base will clinch the highly coveted stage 1 milestone set by Ethereum co-founder Vitalik Buterin. In this stage, a rollup allows network participants to secure the network through fault or validity proofs with limited training wheels in the form of a security council to override the system in the event of a bug. At the same time, the network ought to maintain an upgrade mechanism with mandatory delayed activation, allowing users to withdraw their assets before the upgrade goes live.

In September 2024, Vitalik urged Layer 2 chains to reach at least stage 1 by 2025.

Base’s recent announcement of fault proof implementation plans has unsurprisingly sparked a flurry of reactions online.

Base To Extend Its Lead Over Arbitrum?

Following Base’s fault proof announcement, several observers have tipped the network’s edge in the Layer 2 space to grow. Reacting to the news, WAGMI’s Alexander tipped the move to trigger a surge in the network’s TVL.

Expressing a similar sentiment, Moonwalk contributor Luke Youngblood tipped the move to allow Base to stay ahead of Arbitrum for some time.

This view comes as Arbitrum’s fault proofs system only allows fault proof submissions from whitelisted wallets.

On the Flipside

Implementing fault proofs is only the first step towards decentralization.

The seven-day withdrawal wait time of the optimistic fault proof system may pose a UX challenge for some.

Why This Matters

Base is the largest Ethereum Layer 2 chain by TVL. Introducing fault proofs promises to make the network more secure and decentralized.

Read this for more on Coinbase’s Base:Coinbase’s Base Takes #1 L2 Spot in Just Over a Year: How It Beat the Pack

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