The recent SEC imposition of Coinbase, the largest US exchange, has unveiled a further roadmap for further growth by building new improvements to its Layer 2 network base.
Coinbase Aims To Create New Flatcoin On Its Layer 2 Network
Сoinbase is experimenting with a “flatсoin” on its base network. The exchange recently said that establishing the Base network would require a “flatcoin” or inflation-linked stablecoin. This is one of four major advances being developed in the exchange’s Layer 2 network. The other three are an on-chain reputation system, an on-chain limit order book (LOB) exchange, and tools to improve the security of the DeFi ecosystem.
This could be a risky move for exchanges as most stablecoins are pegged to USD or fiat currency. Сoinbase flatсoins are backed by the cost of living. This will be achieved by tracking the consumer price index and inflation statistics. The introduction of the Base network aroused curiosity. The initial stage of the Layer 2 network is the construction of inflation-linked flatcoins.
“We also welcome other forms of ‘flatсoins’ that do not peg to fiat but rather fill the space between fiat-pegged coins and volatile crypto assets. With the recent challenges in our global banking system, we believe these explorations are more important than ever.” – Сoinbase.
The idea is also backed by investor Ray Dalio, who says he wants an inflation-linked currency that will ensure that the purchasing power of its customers is protected.
Сoinbase’s backbone network is a major advancement in the cryptocurrency market as it allows developers to create inflation-linked flatcoins on the Ethereum blockchain. The underlying network provides a more stable alternative to standard cryptocurrencies by tying flatcoins to inflation rates.
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