Crypto's Centralized Giant Makes a Shift to Decentralization

Brian Armstrong, the co-founder and CEO of Coinbase, is a man on a mission. At the helm of the largest publicly traded cryptocurrency exchange in the world, he's made a fortune by creating a platform that allows people to buy, sell, and trade cryptocurrencies. But Armstrong is no longer content with the status quo. He believes that the future of crypto lies in decentralization, and he's willing to disrupt his own business to make it happen. In August 2023, Armstrong launched Base, a Layer 2 platform designed to improve upon Ethereum by processing thousands of transactions per second at a fraction of the cost. It's a game-changer, but it's not without its challenges. To become decentralized, Base will require more sequencers, which means Coinbase will have to give up control and share fees. It's a bold move, but one that could pay off in the long run.Armstrong's vision for Base is to create a new infrastructure for rapid-fire transactions that will lower fees and weaken the control of big tech and financial firms. He believes that crypto will power more and more of global GDP, creating sound money and financial infrastructure for people all over the world. But not everyone is convinced. The Securities and Exchange Commission has sued Coinbase for acting as an unregistered exchange, broker-dealer, and clearing firm, and the case is likely to go to trial in 2025. And even if Base is successful, it's unclear whether it will be enough to overcome the challenges that Coinbase faces.