Covalent, a Web3 data provider, announced that it has partnered with Coinbase to support the testnet launch of Base, a new Ethereum Layer 2 (L2) solution incubated by Coinbase. Following the development, Covalent’s CQT coin took a leap. Here are the details…
Coinbase announces Covalent partnership
As we reported on cryptokoin.com, Base offers a secure, low-cost and developer-friendly way to build decentralized applications on-chain, while at the same time a “slot” for on-chain Coinbase products and an open space for third-party developers. It aims to serve as a crypto ecosystem.
Trusted by a community of over 40,000 developers and providing data for more than 5,000 applications, Covalent will provide in-depth on-chain data for Base’s testnet and play an active role in monitoring development progress. Covalent’s Web3 data platform will access a new repository via Base from their scaling solutions built on Ethereum and expand its breadth to cover more than 80 supported blockchains and its impressive depth, ensuring all data is fetched from the genesis block.
What is the purpose of Base?
According to Covalent CEO Ganesh Swami, this collaboration is testament to its commitment to providing customers with comprehensive and accurate data. Swami also expressed his excitement at contributing Covalent’s resources and expertise to the development of Base, which he describes as a groundbreaking project that will benefit the entire crypto community. Base is built on top of OP Stack in collaboration with Optimism and aims to accelerate standards for interoperability for Ethereum L2s.
It aims to foster an open-source, decentralized and collaborative on-chain culture and set a new precedent as a Layer 2 rollup. Beyond Coinbase products, developers, wallets and dApps will leverage the resources available at Base in line with Covalent’s mission to empower Web3 developers and enhance the overall Blockchain ecosystem. Base also aims to advance “permissionless” on the Ethereum Blockchain and gradually decentralize over time.
Altcoin price rises
The launch of Base via the “Görli” testnet marks an important milestone in scaling the crypto economy with an aggressive roadmap to reach the mainnet in 2023. This testnet makes it easy for developers to build useful decentralized applications with on-chain data. The collaboration between Covalent and Coinbase highlights the growing importance of accurate, comprehensive and decentralized Web3 data in the development of blockchain-based applications. With the release of Base, developers can expect a secure, low-cost, and developer-friendly way to build dapps on the network, powered by in-depth on-chain data provided by Covalent.
As the crypto industry continues to evolve, partnerships like this are crucial to building a vibrant and sustainable Blockchain ecosystem. In addition, such partnerships can cause a price increase in the cryptocurrencies in question. For example, at the time of writing, Covalent’s CQT token rose 10 percent following the Coinbase announcement. The cryptocurrency rose from $0.1222 to $0.1446 and continues to rise as of now.
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