TL;DR
Ethereum co-founder Vitalik Buterin defended Base’s design, arguing it is non-custodial and firmly anchored to Ethereum’s base layer. His intervention comes after critics claimed Coinbase’s involvement makes the network resemble a centralized exchange. Buterin maintained that Layer 2 frameworks are designed to ensure user protection, not to act as custodial intermediaries.
He explained that Base, like other rollups, implements smart contract logic that guarantees users can withdraw assets directly through Ethereum. This feature, he said, prevents operators from stealing or freezing funds, even in the event of sequencer failure. According to Buterin, this mechanism underlines the role of Layer 2s as extensions of Ethereum rather than isolated servers.
Coinbase executives also defended Base, rejecting the view that transaction sequencers operate like matching engines in exchanges. Jesse Pollak, Head of Base, described sequencers as neutral “traffic controllers” that enhance efficiency without compromising decentralization. He emphasized that users can always interact directly through Ethereum, which ties Base’s operations to the validator set of the main chain.
Coinbase’s Chief Legal Officer, Paul Grewal, added that comparing sequencers to securities exchanges is misleading. He argued that Layer 2 networks operate as infrastructure in the same way cloud services like AWS run user-provided code. In his view, infrastructure cannot be equated with an exchange simply because applications such as payments or trading happen to run on it.
Buterin acknowledged that Base currently sits at Stage 1 of Ethereum’s rollup decentralization model, where its security council still retains governance powers. However, quorum rules limit Coinbase’s influence, and the roadmap toward Stage 2 would eliminate the ability of councils to override contract logic altogether.
Skeptics remain cautious. Developers like Eric Wall and Lane Rettig argue that upgradeable contracts and external pressures leave Base closer to a custodial setup than a fully autonomous system. Still, supporters counter that Ethereum’s security guarantees and the clear pathway toward more decentralization make Base one of the strongest Layer 2 projects in development.
The debate comes as Base explores the possibility of launching a native token. Advocates see it as a step to expand decentralization, while others question its necessity since Ethereum already secures transactions.
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