Base, a Coinbase-backed Ethereum layer-2 network, is set to activate its B20 token standard on Wednesday at 6 pm UTC. This move will enable developers to create stablecoins, real-world assets (RWAs),
Base, a Coinbase-backed Ethereum layer-2 network, is set to activate its B20 token standard on Wednesday at 6 pm UTC. This upgrade follows recent outages linked to issues with Base's sequencer infrastructure and aims to streamline the creation of stablecoins, real-world assets (RWAs), and other fungible tokens.
The activation of B20 will allow developers to use Base’s native framework without building and auditing custom ERC-20 contracts. The standard supports two variants: asset and stablecoin. Asset tokens can have configurable decimals between six and 18, while the stablecoin variant has fixed six-decimal formatting and requires issuers to specify a fiat currency denomination.
B20 was introduced as part of Base’s Beryl upgrade that went live on June 26. This upgrade shortened withdrawal waiting periods from seven days to five and included technical changes aimed at improving network performance. The activation comes after back-to-back outages caused by sequencer bugs, with the first outage lasting about 116 minutes and a second incident of around 20 minutes.
The B20 standard is designed to be compatible with ERC-20 tokens but includes built-in issuer controls such as supply limits, transfer rules, minting, burning, pausing, and transaction notes. This feature set aims to provide more flexibility while maintaining security for token issuers.
This move by Base aligns with broader regulatory efforts in the crypto space, particularly MiCA-compliant euro stablecoins that saw a 128% growth ahead of their July 1 deadline. The activation highlights ongoing developments in layer-2 networks and their role in facilitating more sophisticated financial instruments within the blockchain ecosystem.
For traders and developers, this development is significant as it opens up new possibilities for creating and managing tokens on Base’s network. However, given recent outages, there may be concerns about network reliability. Traders should monitor ongoing developments to assess how these changes impact market liquidity and token issuance practices.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.