Ethereum co-founder Vitalik Buterin has addressed concerns over Coinbase’s Base network, describing it as a model Layer-2 solution that balances efficiency with security. He explained that while Base uses some centralized features to improve user experience, its foundation remains tied to Ethereum’s decentralized Layer-1. Buterin stressed that Base is non-custodial, meaning it cannot block or […]Ethereum co-founder Vitalik Buterin has addressed concerns over Coinbase’s Base network, describing it as a model Layer-2 solution that balances efficiency with security. He explained that while Base uses some centralized features to improve user experience, its foundation remains tied to Ethereum’s decentralized Layer-1. Buterin stressed that Base is non-custodial, meaning it cannot block or […]

Ethereum’s Vitalik Buterin Defends Base as Model Layer-2 Solution

3 min read
ethereum
  • Vitalik Buterin calls Base a model Ethereum Layer-2 with non-custodial safeguards.
  • Base sequencer ensures faster transaction flow without acting as a trading engine.
  • Base is progressing toward higher decentralization while keeping user funds secure.

Ethereum co-founder Vitalik Buterin has addressed concerns over Coinbase’s Base network, describing it as a model Layer-2 solution that balances efficiency with security.

He explained that while Base uses some centralized features to improve user experience, its foundation remains tied to Ethereum’s decentralized Layer-1.

Buterin stressed that Base is non-custodial, meaning it cannot block or seize user withdrawals. This falls under L2beat’s Stage 1 definition, ensuring that users’ funds are safeguarded by Ethereum smart contract logic, even in cases where an L2 shuts down.

He also pushed back on criticism, noting that L2beat’s security classifications are not abstract rules but reflect real protections that prevent user funds from being compromised.

Also Read: Solana DApps Shine Bright 13th Month in a Row Beating L1 and L2 Chains

Sequencers Act as Coordinators, Not Trading Engines

The uproar over Base continued after concerns arose over the use of sequencers. Jesse.base.eth explained the functions of sequencers as transaction coordinators and not as trading engines.

On Base, the sequencer serializes user transactions first-in, first-out, computes state updates, and pushes them onto Ethereum’s mainnet for settlement.

This procedure makes it possible to pay lower fees and get confirmations faster compared to transacting directly on Ethereum Layer-1.

There are two notable takeaways from this design. First, the user can actually bypass the sequencer completely by trading directly with the Ethereum validators themselves, which ensures decentralization and censorship-resistance.

Secondly, sequencers don’t actually match orders as traditional exchanges do; they just carry out the order of the transactions.

Real trading occurs at the application level of the smart contracts, like the decentralized exchanges. This makes all the difference since it would eliminate concerns that the Base would behave like an unlicensed securities exchange.

Base Extends Ethereum, Maintains Non-Custodial Security

Base has made decentralization breakthroughs since its founding. Over the past two years, it reached Stage 1 on L2beat and added permissionless proposals for blocks.

The development team is continuing plans into Stage 2, which involves more decentralization of the blocks for reduced reliance on the centralized operators.

Buterin explained once again that the Base extends Ethereum but does not form a new system. The non-custodial structure ensures the Layer-1 mechanisms wind up regulating user funds.

He cited real-life situations, such as the Soneium crisis this year, when the Layer-2 had issues, but the safety of Ethereum rescued the users and got their funds back.

Against this backdrop, Base positions itself as a decentralized scaling infrastructure for the global on-chain economy of Ethereum, providing speed and efficiency without the defeat of decentralization and security.

Also Read: Kalshi Partners with Solana & Base to Launch KalshiEco Hub for Onchain Prediction Markets

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