Bitcoin on Base

• Blockchain Council
• September 01, 2024

Bitcoin on Base, often referred to as BTCB, is a unique project that aims to bring Bitcoin to a new platform called Base. BTCB was launched in May 2024. Designed to be a blue-chip asset, BTCB combines the digital scarcity of Bitcoin with the scalability benefits of Ethereum. This initiative aims to offer users a second opportunity to engage with a Bitcoin-like asset, underpinned by advanced blockchain technology. Base is an Ethereum Layer 2 network created by Coinbase, aimed at offering a low-cost, user-friendly way to interact with blockchain technology.

Launched in August 2023, Base quickly became one of the most rapidly growing Layer 2 networks. The platform consolidates Ethereum transactions into batches, settling them off-chain before posting them on the Ethereum mainnet, which significantly reduces costs and enhances speed. Although it is built on Ethereum, it also supports Bitcoin through various decentralized applications (dApps), enhancing Bitcoin’s utility.

Being part of such communities often requires a deep understanding of the principles that guide them. Here it’s BTC. Therefore, certifications like Certified Bitcoin Expert™ become more valuable than ever to get a better hold at Bitcoin on Base.

BTCB Supply Mechanics

BTCB mirrors Bitcoin’s total supply cap of 21 million tokens, reinforcing its role as a digital store of value. However, BTCB has gone a step further to replicate Bitcoin’s scarcity, considering the estimated 5 million lost Bitcoins, which account for about 24% of its total supply. To mimic this scarcity, BTCB’s deployer permanently removed 5.16 million tokens by sending them to a burn wallet at the time of launch. An anonymous community member further contributed by burning an additional 210,000 tokens, reducing the total circulating supply to 15.63 million. This act positioned BTCB as one of the scarcest crypto assets today.

Key Features of Bitcoin on Base

Lower Transaction Fees

A key feature of Base, the blockchain behind BTCB, is its capability to lower transaction costs. Compared to Ethereum’s mainnet, which can have gas fees that spike unpredictably, Base offers a substantial reduction in transaction costs. After Ethereum’s recent Dencun upgrade, Layer 2 solutions like Base have seen transaction fees decrease by up to 95%, making it an attractive option for users who prioritize cost-efficiency.

Faster Transactions

Base’s off-chain batching process allows for much quicker transaction times than Bitcoin’s base layer, where transaction confirmation can take up to 10 minutes due to the block mining process. Transactions on Base can be processed in seconds, enhancing the speed significantly compared to Bitcoin’s native network.

High Scalability

Base supports high volumes of transactions, making it ideal for applications with heavy traffic. For example, daily transactions on Base soared from under 500,000 in March 2024 to over 3 million in April, highlighting its ability to handle increased demand without compromising speed or cost efficiency.

Security

Base is Layer 2 framework. It is optimized for speed and security, allowing BTCB transactions to be processed efficiently. This technology positions Base as a highly secure Layer 2 (L2) chain by blending Ethereum’s security with enhanced efficiency and performance. As a result, BTCB benefits from a reliable and robust infrastructure.

Integration with Bitcoin

While Base is inherently linked to Ethereum, it offers enhanced use cases for Bitcoin through Layer 2 applications like Lightning Network and DeFi protocols. The integration allows users to perform rapid, low-cost Bitcoin transactions, bridging the gap between Bitcoin’s security and the advanced features of Ethereum-based dApps.

Corporate and Retail Partnerships

BTCB actively engages with various corporate partners to promote the adoption of its digital asset. These partnerships extend to sectors like healthcare, where BTCB is used to incentivize positive health behaviors through financial rewards on blockchain applications.

Integration with the Base Network

BTCB operates on Base, a Layer 2 (L2) chain built on Ethereum and incubated by Coinbase. Base uses the Optimism OP Stack, which is recognized for strong security and scalability. This platform is not just limited to Coinbase products but is open to all developers.

Community-Driven Governance

One of BTCB’s strongest attributes is its commitment to decentralization and community control. The project is governed by its community, where participants collectively make decisions about its direction. This governance model reinforces BTCB’s foundational principles, ensuring that it remains true to its decentralized roots. This collaborative method builds a feeling of responsibility. It motivates participants to play a part in the project’s achievements. The contract for BTCB is renounced, and the Liquidity Pool (LP) is burned. This means that liquidity cannot be withdrawn by anyone who does not own it​.

Future Prospects of Bitcoin on Base

The price of Bitcoin on Base is $0.28 as of August 30, 2024. It shows potential for significant growth due to its strategic focus on enhancing blockchain accessibility. Price predictions suggest that BTCB could experience substantial gains in the coming years. For example, projections indicate that the token might reach higher trading values, fluctuating between $1.73 and $4.74 by 2026. This shows promising upward trends during bullish market conditions.

Those with certifications like Certified Cryptocurrency Trader™ (CCT) will find themselves well-positioned to understand these market dynamics and make informed trading decisions.

Conclusion

Bitcoin on Base represents a unique fusion of Bitcoin’s principles with the advanced capabilities of the Base blockchain. Its strong community governance, intentional scarcity, and integration with a powerful Layer 2 network position BTCB as a noteworthy asset for both new and seasoned crypto enthusiasts. This shift shows an increasing pattern towards integrating Bitcoin into more diverse financial applications.