// GLOSSARY -- BLOCKCHAIN & CRYPTO FUNDAMENTALS

What is Base?

1 min read Updated

Base is an Ethereum Layer 2 blockchain built by Coinbase using the OP Stack (Optimistic Rollup), offering fast transactions (~2 second finality), very low fees (sub-cent), and deep integration with Coinbase's ecosystem including USDC and agent payment protocols.

WHY IT MATTERS

Base has become the default chain for AI agent payments. Coinbase's x402 protocol runs on Base, CDP (Coinbase Developer Platform) creates wallets on Base, and the emerging agentic economy is centering on Base as its primary settlement layer.

The economics make sense for agents. Base transactions cost fractions of a cent, enabling micropayments that would be prohibitively expensive on Ethereum mainnet. A 2-second finality means agent transactions confirm quickly. And Base inherits Ethereum's security through its rollup architecture.

The developer experience is pure EVM — all existing Ethereum tools, libraries, and smart contracts work on Base without modification. If you can deploy on Ethereum, you can deploy on Base.

HOW POLICYLAYER USES THIS

PolicyLayer operates natively on Base — the primary chain for x402 agent payments and the Coinbase developer ecosystem. Deploy spending controls on Base for sub-cent policy enforcement on every agent transaction.

FREQUENTLY ASKED QUESTIONS

Why is Base preferred for agent payments?
Ultra-low fees (suitable for micropayments), fast finality, native USDC support, x402 protocol integration, and Coinbase ecosystem backing. It's purpose-built for the kind of high-frequency, low-value transactions agents generate.
Is Base decentralized?
Currently, Base has a centralized sequencer operated by Coinbase. It's on the decentralization roadmap (following the OP Stack's path), but for now, Coinbase controls block production. Funds remain secured by Ethereum L1.
How does Base compare to other L2s?
Base, Arbitrum, and Optimism are all EVM L2s with similar performance. Base's advantage is Coinbase ecosystem integration — x402, CDP, USDC, and the growing agent payment infrastructure.

FURTHER READING

Enforce policies on every tool call

Intercept is the open-source MCP proxy that enforces YAML policies on AI agent tool calls. No code changes needed.

npx -y @policylayer/intercept
github.com/policylayer/intercept →
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