Fresh Take on Franklin Templeton’s Insight into Base L2 Blockchain
Franklin Templeton, a renowned asset manager with over $1.4 trillion in assets, recently focused on Base, a layer-2 (L2) blockchain solution developed by Coinbase.
Launched publicly on August 9, 2023, Base swiftly gained popularity in the blockchain community, particularly for its innovative approach in Social Finance (SocialFi).
Base’s Rise as a SocialFi Contender 🚀
- Approximately 46% of all Base transactions are connected to SocialFi applications, indicating a crucial sector for Base’s growth.
- Franklin Templeton pointed out Friend.Tech as a notable example of this trend.
Friend.Tech’s Impact 📱
- Friend.Tech, a mobile app focusing on monetizing social interactions, gained attention with the launch of Friend.Tech V2 and the FRIEND token airdrop.
- The FRIEND token, valued at $200 million, is entirely held by users, highlighting strong community engagement within Base’s ecosystem.
Furthermore, Franklin Templeton emphasized that integrating SocialFi applications into Coinbase’s vast user base gives Base a competitive edge.
“With support from Coinbase, Base is well-positioned with SocialFi applications and direct integration to lead in the Ethereum L2 sector,” noted Franklin Templeton analysts.
Optimistic Rollups for Efficiency 🔄
- Base utilizes optimistic rollups to accelerate transactions and reduce costs by batching transactions off the Ethereum blockchain before finalizing them on the mainnet.
- This process enhances efficiency without compromising security, setting Base apart from other L2 solutions.
Remarkable Growth and Challenges
- Base’s total value locked (TVL) surged by 630% to $5.45 billion YTD, outpacing older L2 solutions like Arbitrum and Optimism.
- Base’s growth far surpassed Arbitrum, the leading L2 solution, signaling Base’s significant progress in the industry.
Ensuring Security 🛡️
- Despite its achievements, Base faces security challenges, particularly with meme coin projects, where 91% are vulnerable to breaches.
- Ongoing security enhancements are crucial to safeguard user investments and maintain trust in Base’s ecosystem.
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