Coinbase is committed to adopting Layer 2 scaling technology through its latest move in integrating the Polygon network.
In an announcement on the company’s blog on July 13, Coinbase announced that Polygon Network is now available on the Coinbase Wallet mobile app and extensions, and that more extension solutions will be launched shortly.
Coinbase claims that more than a million wallet customers use DeFi protocols like Uniswap, Compound and Aave, and NFT platforms like OpenSea and Zora.
It also admitted that Ethereum’s transaction fees have been quite high lately and the waiting time for confirmation is very long when the network is congested. Combined with Coinbase’s exorbitant fees, using the exchange becomes an expensive process.
Coinbase Laying on Layer 2
Coinbase stated that using the Ethereum Layer 2 scaling aggregator Polygon is as easy as selecting it from the wallet application’s active network.
Users will need some crypto on the Polygon platform as Coinbase does not support Layer 2 natively. After the two wallets are connected, users need to use Polygon Bridge to send ERC-20 tokens from the Ethereum mainnet to Polygon.
You can then use any dapps and protocols built into Polygon (like Aave) to immerse yourself in DeFi. Coinbase stated that its mission is to enable millions of users to enter the DeFi world.
“In the coming months, we’ll continue to take steps to make it easier for users to access and interact with a variety of Layer 2 networks both on mobile and web.”
In October 2020, Coinbase added support for optimistic rollups using the Optimistic Ethereum platform. At the time, the scaling tech was largely experimental and running on testnets on platforms such as Synthetix.
Coinbase is planning to start its own Dapp store after receiving a crypto custody license from the German financial regulator BaFin.