Friday, June 2, 2023

Coinbase wants developers to build inflation-indexed ‘flatcoins’ on its new ‘Base’ network

Crypto exchange Coinbase considers inflation-indexed “flatcoins” one of four “critical” innovations to be built on its new Layer 2 network foundation.

The other three include the chain-of-reputation system, the chain of limited ledger (LOB), and the tools that make the financial (DeFi) ecosystem decent.

The trading platform outlined four areas in a post released on April 24, about a month after Coinbase launched Base, an Ethereum-based network powered by Optimism Jet 2.

Are you an expert passionate about growing the chain economy, but don’t know where to start? We’ve just published a builder proposal: four areas builders love to explore on Base (with funding from the Base Funding Ecosystem).

First, the development of inflation indexed flatcoin. In light of the recent banking crisis, Coinbase said it is now “bigger than ever” to build an inflation-tracking currency that rejects monetary policy decisions from central banks;

“[Estamos] primarily interested in “flatcoins”, which are solid currencies that wear the rate of inflation, allowing users to gain stability while also remaining in the face of economic uncertainty caused by the legacy monetary system.

While most stable assets are pegged to an asset standard such as the US dollar, the machines are pegged to the “price of life” to track price index and growth data.

Coinbase added that it is also open to other ideas that “fill the gap” between “fiat-weighted stability” and volatile cryptocurrencies.

The idea also has the approval of investor Ray Dalio, who recently said that he wants to see “inflation-linked currencies” so that consumers can realize their purchasing power.

The closest thing to it is an inflation-indexed bond, but if you created a portfolio that said, “Okay, this is a power acquisition where I know I can save and put my money over time and do it somewhere, I think that’s good money,” he said.

Coinbase is doing a Request builder on their L2 and they are incubating one of the products that won’t be a stable firm

Coinbase also urged developers to look into developing an on-chain reputation system, which it says plays a “critical” role in establishing “on-chain trust” between users, Coinbase said.

The report of the protocol could implement a trust score or a range-like system that is placed in a safe certain criteria that can meet each other before the identity chain with the decentralized finance (DeFi) application;

“This could look like FICO or Google’s famous score page on ENS names, dealer ratings/reviews, and other things that help build a chain of trust.”

Ganesh Swami, CEO of blockchain data aggregator Covalent, previously told Cointelegraph that this can be done by reviewing a single e-wallet’s past transaction data on competing protocols, as it leaves a barrier that he describes as “historical breadcrumbs.”

However, Coinbase said that reputational protocols must ensure that the privacy and autonomy of users is preserved.

In the third quarter of interest, Coinbase said that trading on the chain’s limit order ledger could serve as a “more advanced exchange” that can carry out normal exchange operations while removing counterparty risk through self-care.

Limit orders are used to place an order to buy or sell a security with a restriction on the maximum (or minimum) price at which the user is willing to trade. The term order book is a list of orders for security data.

Coinbase believes the LOB exchange will open up a host of new on-chain trading opportunities: Base

By bringing this on-chain, Coinbase explained that it could offer traders and professional organizations a new trading venue for trading strategies that are known in the traditional financial system;

“High base performance opens up significant new opportunities to design new trading mechanisms for spot, limit orders, options, perpetuities and more. Additionally, creators can use open tools like OP Stack to build L3, which give them more speed and flexibility, potentially allowing even more liquidity through the L2 approach.”

The last area of ​​focus, according to Coinbase, revolves around making the decentralized financial (DeFi) ecosystem safer for users and developers.

To achieve this, you want to implement tools that protect against smart contract code vulnerabilities and logical protocol errors.

The company explained that its security testing tools and more robust auditing services can help mitigate threats, breach environments and mitigate incident response systems.

Coinbase said it would also like to see more secure protocols to serve as a “critical backup” for users in the event of a criminal smart contract.

As part of its effort to help accelerate DeFi on Base, Coinbase launched its Base Ecosystem Fund to help finance early-stage projects based on Base. The Layer 2 network now supports more than 30 trains, according to a recent post by Base.

Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here is not intended to be used as financial advice or investment recommendations. Every investment and commercial move involves risks and it is up to each person to do their due diligence before making an investment decision.

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Nation World News Desk
Nation World News Desk
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