Coinbase, a leading crypto exchange, made a big impact in August by introducing its Base layer 2 blockchain. This innovative blockchain aims to improve the scalability and efficiency of Ethereum, attracting investors and traders. In just one month since its launch, FriendTech, a decentralized app (DApp) on Coinbase’s Base, has seen impressive growth, with over 110,000 new unique addresses.
FriendTech is a web3 social media app that lets users trade “shares” of their friends using ether, the native cryptocurrency of Ethereum. This unique concept has gained rapid popularity, with hundreds of thousands of active users participating in the exciting world of buying and selling shares. The share prices fluctuate based on popularity, creating a dynamic and thrilling marketplace.
Tokenized financial products, like FriendTech’s shares, have revolutionized investing. This approach lowers barriers for investors, making it more accessible and inclusive. It also improves liquidity and pricing, creating a more efficient market for traders.
One standout feature of FriendTech is its seamless integration with Coinbase’s Base blockchain. The platform’s transactions are executed on a separate side network, ensuring faster and more cost-effective transactions compared to Ethereum. This integration allows FriendTech users to engage in buying and selling shares effortlessly, enhancing the overall user experience.
Coinbase’s Base blockchain also hosts a tokenized US bond exchange-traded fund (ETF) in collaboration with BlackRock. This innovative offering allows users to gain exposure to US bonds through tokens, providing a convenient and secure investment option.
The addition of the Base blockchain could generate a new revenue stream for Coinbase. The company’s current revenue model includes transaction fees, custodial fees, and blockchain rewards. With the growth of apps like FriendTech, Coinbase can diversify its revenue sources and solidify its position as a leader in the crypto industry.
While FriendTech has faced challenges, like a decline in activity after the initial hype, this may be a natural stabilization of user activity. FriendTech’s unique feature of requiring users to purchase a share or key to access content adds exclusivity to the platform, incentivizing users to actively participate and invest in their favorite channels.
FriendTech’s growth is closely monitored using on-chain data, ensuring transparency and accountability. This data-driven approach gives investors and traders access to accurate information, enhancing confidence in the platform.
As the crypto market evolves, blockchain technology and DApps like FriendTech are becoming increasingly significant. Fractionalization allows for greater financial inclusion and empowerment, democratizing access to financial products and services.
Coinbase’s Base blockchain, with its improved scalability and efficiency, is set to transform the building and operation of DApps on Ethereum. As more apps are developed and integrated with Base, Coinbase stands to benefit from the growth of this ecosystem, potentially creating a new revenue stream.
FriendTech’s explosive growth on Coinbase’s Base blockchain showcases the potential of DApps. By combining social media popularity with blockchain efficiency, FriendTech has created an innovative platform for users to trade shares.
FriendTech and Coinbase’s Base blockchain are paving the way for a new era of decentralized finance. With user-friendly interfaces, faster transactions, and fractionalization of financial products, these platforms are revolutionizing how we invest, trade, and interact in the digital world. The future of social media and finance is here, and FriendTech is leading the charge.