Coinbase partners with Optimism to launch Base, a Layer 2 scaling network for Ethereum. To celebrate, it is also launching a free and open Coinbase NFT called «Base, Introduced» using the Zora platform.
What Are NFTs?
Explaining what an NFT is is no different than explaining the composition of traditional digital currencies like Bitcoin, Ethereum, or Dogecoin.
The reason is that NFTs are represented as digital assets and run on blockchain networks. This will allow NFTs to be transferred from one wallet to another quickly, securely and cheaply. Creating a blockchain network also ensures that NFTs are transparently verifiable.
However, NFTs differ from the aforementioned digital currencies in that each token can be identified by a unique transaction hash. In short, this means that no two NFTs are the same.
What Is Coinbase?
Coinbase is an online platform that acts as a digital wallet, which means you can use it to store all your cryptocurrencies in one place.
In this sense, you can think of it as your bank’s app, where you can see the evolution of the amount of cryptocurrencies you own and their value.
Besides being a digital wallet, it also has a unique address that others can use to send you cryptocurrency, allowing you to receive or pay without using another service.
It is also a cryptocurrency trading service known as a cryptocurrency exchange. This means that you can link your credit card to the service and use your real money to buy different types of cryptocurrency, which you can then resell at any time.
Coinbase is one of the largest cryptocurrency exchanges. It operates in more than 32 countries and has around 42 million users.
Until now, the company had focused all of their energy on creating a cryptocurrency website and putting all of their investment into these websites. But that trend appears to be over. Coinbase has realized that NFT is the biggest sensation right now and doesn’t want to miss out on the current boom.
In fact, Opensea, the largest platform for such assets, is worth around $13 billion today. Coinbase is determined to get a piece of the pie, so it developed its own NFT trading platform.
The Launch of Base
Coinbase today announced the launch of Base, an Ethereum Layer 2 scaling network built in partnership with Optimism. To celebrate the news, the cryptocurrency exchange launched the open source Coinbase NFT platform based on the Ethereum system.
«Base, introduced» is a free Coinbase NFT offered through the NFT Zora coin platform. This is an open edition NFT, which means anyone can claim one of the same collectibles until the minting period ends on Sunday, limited to one NFT per person, per year.
Base announced that over 24,000 Coinbase NFTs have been minted. As a result, the NFT smart contract, which contains the code that keeps the project running, has become the largest «gas buyer» on the Ethereum network, spending more than $271,000 in gas (or network transaction fees) in the last three years.
Coinbase does not promise future profits or income from their Coinbase NFT. However, NFTs have found some traction in secondary markets. Most of these now sell for a relatively low price of around 0.01 ETH ($16), but some older numbered versions or those with so-called «vanity numbers» cost more.
For example, NFT #888 sold for 0.888 ETH ($1,455), and a buyer marked it up at 8,888 ETH ($14,700) hoping to get a good price.
Other versions of the triple-digit NFT have sold for hundreds of dollars since they were minted for free.
How Does It Work? What Are Its Advantages?
Coinbase has decided to proceed with caution. Instead of launching their new NFT marketplace this time. The company started with a limited number of people. The process to be included in the small number of «testers» is as follows:
- You need to visit the Coinbase website and add yourself to the Coinbase NFT beta waiting list. Once you’ve taken that first step, it’s just a matter of waiting for them to contact you.
- The link you received when you entered the list should be recommended to other people; the more people use your link, the higher your ranking will be.
- If they choose you, the company will notify you so that you can access their NFT page.
There are advantages to being in this select crowd. First of all, Coinbase NFT transactions are currently commission free. They might add them in the future. But for now, they bet for a free commission every time an NFT is sold on their site.
You can also experience all the new features included in the platform.
But not everything can be an advantage. It should be noted that the number of artists and collections currently running on Coinbase NFT is very limited, so there is not much material to choose from.
Coinbase NFT Functionality
Coinbase has decided to take NFT trading one step further. The company wants it to be more of a social network than a marketplace where ideas can be created and shared. To do this, it will have the following characteristics:
- Be able to like the NFTs of your interest.
- Allow comments and open discussions on all tokens.
- Easy to share and save NFT.
This NFT platform will not only feature images. Coinbase also wants to «tokenize» various products. These are some of the things you can find when the official version of the platform is released:
- Original artwork.
- Photography.
- Music.
- Other collectibles.
Coinbase also wants to make payments as easy as possible, so consider paying with your Coinbase wallet or credit card. This is due to a partnership with MasterCard, whose goal is to keep cryptocurrency shopping enthusiasts on the sidelines.
All this is organized around the Ethereum network, which will be in charge of executing all transactions. While there aren’t many artists right now, you can count on artists like Cool Cats, Doodles, and Azuki.
Coinbase Wants to Help Users Protect Their Coinbase NFT
Some of the features Coinbase confirmed to add include a preview system, alert confirmation system, and automatic flag detection, as well as another means of preventing malicious attacks.
In an explanation, Coinbase mentions that the system will attempt to notify users of various changes that may occur to their wallets if they sign a contract.
The token authentication feature will also notify users if a dApp tries to use their NFT without permission. If a merchant wishes to interact with said dApp, a message will be displayed warning of the consequences, and they can choose to ignore it and continue with the transaction.
In this way, they can help users limit the damage that malicious actors involved in phishing scams and other malicious methods can cause to their NFTs.
In a blog post, a Coinbase executive mentioned that the new functionality was necessary due to the technical nature of transacting using crypto. He also pointed out that due to users’ lack of knowledge in navigating the encryption process, they are often targeted by malicious links and other scams.
Coinbase also added a feature that allows matic users to disconnect their wallets from different apps. The company will also help users who have different wallets merge them into one.
After a market pause a few weeks ago, cryptocurrency scams are rampant again. According to multiple sources, Azuki NFT and Robinhood’s official Twitter account were compromised and its users were defrauded of millions of funds.
However, the wallet company has warned users to stay away from phishing links and untrustworthy sites that advertise fake giveaways.
How To Buy Coinbase NFT?
The professional cryptocurrency portal Cointelegraph recommends first creating a proper cryptocurrency wallet that can connect to the Coinbase marketplace. For example, in the NFT market, you can use software wallets like the MetaMask Wallet or the Coinbase Wallet.
However, software wallets are not enough to trade on the Coinbase market. To buy and sell non-fungible tokens, it is important to have ETH in your wallet.
Not only do you need ETH to buy and sell NFTs, you also need to pay for gas in ETH. These are the fees you pay to operate on the blockchain, which are relatively high on ETH.
Another tip is to buy crypto through Coinbase, which is of course convenient if you want to find everything on one platform. However, to avoid risk, it is important to consider diversification.
In the case of Coinbase, it is important to note that market transactions are irreversible before a purchase is made, as this is a key feature of the blockchain. You can also resell your NFTs, or sell your own in Coinbase marketplace. Here you can sell NFTs at a fixed price, but you can also start auctions on other NFT marketplaces.
If you are interested in the release of the Coinbase NFT platform, you can find more information on our site Para Hombre.
