The Launch of Base8
I just came across this new Bitcoin Layer 3 platform called Base8 that launched on October 24, 2024. Apparently, it’s designed to be a neobank for crypto users, integrating Bitcoin Layer 2 solutions and focusing on something they call "sats" — which I guess is short for satoshis? The idea is to create a user-friendly environment for both newbies and seasoned crypto veterans. But here’s the kicker: the founders claim they want to merge centralized investing with decentralized finance (DeFi). Sounds ambitious, right?
Satoshis: The New Buzzword?
One thing that stood out to me was their emphasis on using "sats." According to them, it makes Bitcoin more approachable. Instead of worrying about how many whole Bitcoins you own (because let’s face it, most of us don’t own a full one), you can just think in terms of these smaller units. They argue that this fractional approach helps ease people into crypto and simplifies transactions.
But are we really at a point where we need another term? I mean, isn’t “Bitcoin” enough?
Centralized vs Decentralized Finance
Base8 seems to be walking a fine line between TradFi (traditional finance) and DeFi. On one hand, they’re promoting this non-custodial model where users have full control over their assets—sounds great! But then again, if everyone is just using their own wallets, what’s the point of calling it a “bank”?
They also touch upon privacy concerns. Traditional banks know everything about you; that’s kind of the deal if you want your money safe. But if you’re using something like Base8, do you really want them knowing your business?
Crowdfunding: A Double-Edged Sword
Base8 is apparently crowdfunded through Republic and aims to raise $3.5 million in total after already securing $500k in pre-seed funding. This raises some red flags for me. Isn’t crowdfunding essentially asking for money from people without giving them any guarantees? Sure, some successful startups have gone that route (hello Oculus!), but so have many failures.
The article mentions risks like fraud and high failure rates among crowdfunded startups. Seems like a gamble if you ask me.
Comparing with Established Crypto Banks
Finally, the article compares Base8 with existing international crypto-friendly banks like BankProv and Evolve Bank & Trust—both of which are insured by the FDIC and thus seem pretty secure.
Base8 claims to use “institutional-grade security,” whatever that means. But without some form of regulatory backing or assurance that my funds won’t disappear overnight, I’m not sure I’d feel comfortable putting my money there.
Summary: Is Base8 Necessary?
So here’s my takeaway: while Base8 might offer some interesting features and concepts (if you can get past the jargon), do we really need another platform? Especially one that seems so geared towards potentially centralizing things again when we’ve only just started understanding the benefits of decentralization?
