Coinbase, a cryptocurrency exchange, has developed an Ethereum Layer2 solution called Base, which will utilize the Ethereum Attestation Service (EAS) and Coinbase for identity verification.
The Ethereum Attestation Service (EAS) is an infrastructure that aims to create on-chain or off-chain multiproof for users, including identity, asset ownership, reputation, and certificates. It is expected to become a universal verification service in the blockchain ecosystem.
Anthony Bassili, the tokenization lead at Coinbase, announced at the TokenizeThis 2024 conference in Miami that Base will optimize identity verification using the Ethereum Attestation Service. This technology will automatically generate labels on users’ wallets, thereby speeding up the entire verification process and enhancing the efficiency of Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
In essence, once users complete EAS on the Base chain, they will meet Coinbase’s KYC requirements. Initially, this feature may only be supported by Coinbase exchange, but there are plans to expand it to the entire Base ecosystem.
Anthony Bassili also predicts that the market will eventually evolve into a KYC-dependent model and form a market structure.
Furthermore, Bassili has a larger vision that when robust tokenized assets emerge in various asset classes, transactions between assets will no longer rely on the US dollar as the anchor asset. However, he acknowledges that it will take some time to achieve this goal.
Bassili also points out that cryptocurrencies are a perfect embodiment of a free and open market structure, where users can design various complex forms of transactions and achieve direct asset-to-asset transactions without relying on the US dollar as the trading pair.