Mantle blockchain

Mantle is a blockchain that was launched in July 2023, built on Optimistic Rollup technology, which allows for fast and cost-effective transactions. Designed to be accessible and developer-friendly, Mantle facilitates the easier creation of decentralized applications (dApps) on its blockchain. The platform also employs a modular design, segmented into multiple layers for enhanced system performance.

One of the key advantages of Mantle is its modular rollup design, which divides the network's entire operation into four independent layers, thereby accelerating and improving throughput. The Mantle Network architecture utilizes EigenDA as its data availability layer, meaning transaction data is sent there rather than directly to the Ethereum blockchain. This allows the Mantle Network to operate independently of Ethereum's validator set when confirming blocks and enables it to upgrade its blockchain without requiring a hard fork. This approach is unique and not employed by any other rollup.

Base blockchain

The Base blockchain is a new project that was launched on August 9, 2023, by the company CEX Coinbase. The blockchain serves as a Layer 2 (L2) solution for the Ethereum blockchain and offers a range of benefits that are highly sought after by both users and developers. Its affiliation with Coinbase lends the blockchain a degree of legitimacy, making it easier for developers to create and operate dApps on the platform. The Base blockchain is also built on the OP Stack software package from Optimism.

One of its standout features is the OP Stack SDK, created by the Optimistic Collective (OP), the developers behind the Optimism blockchain. This package is designed to simplify the launch of new blockchains. Base is powered by Optimistic Rollups but is managed by OP, who are responsible for its development and updates. The most significant advantage of this package is its future integration into what is termed "SuperChains," OP's vision to interconnect all blockchains built on this SDK. This is expected to operate on a similar principle to Polkadot's relay chains or Cosmos Hub. Currently, the only participants in this "SuperChains'' ecosystem are Optimism and Base.

A brief but intense history

Both the Base and Mantle blockchains are in the early stages of their development. Base was officially launched on August 9, 2023, with its testnet having been operational since February of the same year. Mantle was launched almost a month earlier, on July 17, 2023, and its testnet has been active since January 10, 2023.

In terms of historical context, neither blockchain has a long past, but testing on their respective testnets has proceeded without any major hiccups.

The Base blockchain is backed by Coinbase, the world's second-largest cryptocurrency exchange. On the other hand, Mantle underwent a merger and is now affiliated with BitDAO, the largest cryptocurrency treasury, founded in 2021 by the creators of the ByBit cryptocurrency exchange.

Two paths, one technology

Optimistic Rollups serve as a common technological foundation for both the Base and Mantle blockchains. While Base has opted for a straightforward approach by adopting the pre-existing OP Stack package from the Optimistic Collective, Mantle chose to customize Optimistic Rollups to fit its unique requirements.

Despite sharing the same foundational technology, the two blockchains have distinct features:

• Base enjoys the advantages of a proven structure from the Optimism blockchain and the potential for future integration into the "SuperChains" ecosystem, which could offer a significant competitive edge over other Ethereum-based L2 solutions

• Mantle, conversely, took a more individualized path, modifying Optimistic Rollups to create its specialized modular platform. This platform employs four layers for its operations, the most crucial of which is the EigenLayer, on which Mantle DA operates. This is a re-staking protocol on the Ethereum blockchain that ensures data availability and security in a similar manner to Ethereum itself

It is important to note that both blockchains currently use a single sequencer for block creation and finalization on the Ethereum blockchain. These sequencers are managed by a single entity, which raises the possibility of data alteration before Ethereum validator confirmation. Future plans include introducing multiple sequencers to both networks, thereby enhancing their decentralization.

Future use cases

With their speed and low transaction costs, both the Base and Mantle blockchains offer a wide array of potential applications in both the real (Web 2.0) and crypto worlds.

Base

Created by Coinbase, Base stands to benefit from the exchange's significant role in popularizing cryptocurrency investments, especially in the U.S., over the last decade. Indeed, Coinbase is engaged in various sectors of the crypto universe, including:

• Development of digital wallets for cryptocurrencies
• Offering staking and custody services
• Providing tools for developers

What's even more noteworthy is that Coinbase manages over 120 billion USD in assets on its platform, has more than 7 million active monthly users, and serves over 50 institutional clients, including firms like BlackRock, a16z, and Grayscale. It also has huge reach, operating in over 100 countries globally.

Therefore, the Base blockchain is poised to become a "hub" for products and users, and the extensive reach of Coinbase's activities and partnerships could lead to widespread crypto adoption among both institutional and retail users. With its massive user base, Coinbase could be an enticing platform for dApp developers, who could easily transition from the exchange to the native blockchain.

Mantle

After merging with BitDAO, Mantle Network gained access to other BitDAO-affiliated projects like Game7 and HyperPlay. These projects focus on developing tools for game developers and their integration into Web 3.0. This suggests a clear future vision for Mantle Network in the gaming industry, given the blockchain's speed.

Another promising area for this blockchain, thanks to its speed and scalability, is the DeFi space, which requires quality dApps and low transaction fees in order to continue its growth. Given Mantle's large treasury and developer-centric initiatives, there is a high likelihood that new and innovative dApps will emerge rapidly. If this happens, the low transaction fees will attract more users who are eager to explore a broad range of new dApps, and the DeFi world will likely flourish.

Security

Both blockchains prioritize utmost security, and therefore, before their launch, they underwent audits of their smart contracts to ensure the smooth operation of the entire system.

Mantle engaged firms such as OpenZeppelin, Secure3, Sigma Prime, Quanstamp, and Zellic to audit its codebase. Any serious flaws that could have jeopardized the functioning of the blockchain or its potential misuse were immediately addressed upon the audit's conclusion. As of now, there are no critical issues present on the blockchain.

• ‍OpenZeppelin - Conducted audits of Bridge and MNT coin‍
• Secure3 - Conducted kernel check on the code‍
• Sigme Prime - Conducted kernel check on the code‍
• Quantstamp - Conducted audits of Bridge and MNT coin ‍
• Zelic - Conducted audits of Bridge and MNT coin

Base has taken over all the code from OP Stack, which had its contracts audited by reputable firms, as documented here. Despite this, Base engaged its community through a public contest on Code4Rena. The community scrutinized the OP Stack contracts and was rewarded for discovering any flaws. As a result, this blockchain currently has no critical issues.

The team behind the Base blockchain remains actively involved in developing security features and has even created their own monitoring tools, known as Pessimism. This tool monitors and oversees all systems integrated through the OP Stack.

Which blockchain do users prefer?

At first glance, Mantle and Base appear to be evenly matched newcomers. On one side of the coin, you have Base, backed by the powerhouse Coinbase, and on the other, Mantle, which is supported by the most valuable crypto treasury. However, it's more like a David and Goliath situation in reality, with Base’s more established brand backing and extensive marketing clearly playing a significant role. Both projects have ample financial resources, however, so it is not out of the question that Mantle could eventually catch up with Base.

The first indicator clearly shows the difference between David and Goliath.

Mantle

Base

User interest clearly leans towards Base, as evidenced by the fact that its blockchain boasts over 1.7 million addresses, of which 1.2 million are unique. In contrast, Mantle has only around 294,000 addresses on its ledger. Despite running for nearly a month longer, it has garnered just over a quarter of the user base that Base has managed to attract in just 13 days. This stark difference serves as a telling indicator of where user interest and trust currently lie.

Mantle

Base

This dominance extends to assets bridged from the Ethereum blockchain. Within just 13 days of its launch, Base had attracted over 255 million USD in various tokens, while Mantle saw only 57 million USD during its first month of operation. This significant disparity further underscores where users are choosing to allocate their assets and trust.

Mantle

Base

The influx of new capital into Base shows no signs of slowing down, while Mantle is seeing inflows in the tens of thousands of dollars. This is largely due to the marketing efforts deployed by Coinbase, with a major draw being the Onchainsummer NFT-focused event, scheduled for August 2023. This could be one of the main reasons for the continuous capital inflow.

However, Mantle may not lag behind in the long term. Its DAO, and by extension its community, has voted to allocate 200 million USD from its treasury (which holds over 2 billion USD) to a fund dedicated to ecosystem support over the next three years. This strategic move could position Mantle for significant growth and competitiveness in the future.

With or without a coin?

Mantle has its own native coin, MNT, while Base currently does not have a coin and Coinbase has emphasized that it has no plans to issue its own cryptocurrency in the near future. This comes with its own set of pros and cons. In the crypto world, having native coins for various dApps or blockchains allows users to actively participate in the governance and development of a given protocol. From a decentralization standpoint, having a native coin is advantageous.

On the flip side, if a blockchain has its own coin, its price is often influenced by market sentiment. This means that if the token's price sharply declines, users may lose interest in the platform and leave.

Mantle’s MNT coin was distributed on July 7, 2023, and its allocation was:

• 51% - Put into circulation
• 49% - Locked in the treasury

‍The 51% was distributed as follows:

• 70% - Farming (provided to MantleSwap as a reward for pools)
• 8% - Team
• 8% - IFO (Initial Farm Offering)
• 7% - Community rewards (testnet, OG rewards)
• 5% - Treasury
• 2% - Genesis liquidity

The distribution of these coins is considered ideal, and the absence of pre-sale investors is also a positive sign. However, success has been elusive so far; the coin's price briefly surged upon its market debut but has since started to decline. This fluctuation indicates that while the project may have strong fundamentals, market sentiment is still a significant factor affecting its performance.

Mantle

On the other hand, Base has no native cryptocurrency and has no plans to introduce one. This could be interpreted as a strong indicator of centralization, which is likely to persist for some time. Despite this, though, it hasn’t seemed to bother anyone, and trust in Coinbase, the only cryptocurrency company listed on the stock exchange, remains high.

In the early stages of project development, a higher degree of centralization isn't necessarily detrimental; it often even accelerates development. However, it is crucial to keep a close eye on how the situation evolves and whether Base will move towards decentralization in the future. This will be a key factor in assessing the long-term sustainability and success of the project.

The DeFi landscape

Both blockchains have a significant presence in terms of DeFi-focused dApps. But again, while the Base blockchain boasts over 65 projects, Mantle has a more modest total of 17.

Mantle

Despite a slowing influx of new assets, Mantle's DeFi ecosystem remains vibrant, with daily trading volumes in the millions of USD.

Top dApps on Mantle

• Agni Finance - A DEX (Decentralized Exchange) built on an Automated Market Maker (AMM) model, offering concentrated liquidity
• iZiSwap - A multi-chain protocol that provides Liquidity as a Service (LaaS), aiming for stable trading through its various tools
• FusionX Finance - Another DEX based on an AMM model

Base

In contrast, Base has experienced a significant drop in its daily trading volume, falling from tens of millions of USD to just a few million in the last few days. This decline, which started on August 17, 2023, could be attributed to a 10% drop in Bitcoin’s price on that day, followed by a more gradual decrease in the subsequent days.

Top dApps on Base

• ‍BaseSwap - DEX developed by the team behind the Base blockchain‍
• SwapBased - A DEX focusing on Perpetuals trading‍
• Compound V3 - A multi-chain lending protocol

Advantages and disadvantages of both blockchains

Mantle Blockchain

Advantages

• Modular Design: This architecture allows for extremely low transaction fees due to batch transactions
• Large Treasury: A substantial financial foundation can attract a lot of new and high-quality developers to the ecosystem
• EVM Compatibility: Being compatible with the Ethereum Virtual Machine (EVM) is a significant asset for future development and could speed up adoption
• Mantle LSD (Liquid Staking Derivatives): Liquid staking could expand the ecosystem and attract new users. This proposal is still under review. If approved, Mantle will be among the first Layer 2 solutions to offer LSD products
• BitDAO Partnership: Collaboration with this organization opens up new opportunities and partnerships
• Active Ecosystem: Despite a slowing influx of new assets, the DeFi ecosystem remains vibrant

Disadvantages

• Centralization: Currently, a single sequencer managed by BitDAO is responsible for block creation
• Limited Track Record: Mantle has only been operational for a month, meaning it lacks the user trust that established Layer 2 solutions have
• Slow Bridge: Transfers from Mantle to Ethereum can take up to 7 days due to Optimistic Rollups
• No Historical Data: Mantle has been running for a short period, and it is unclear how the system will behave under increased user load
• Limited Diversity: Fewer projects could mean less diversity in service offerings

Base Blockchain

Advantages

• OP Stack: This implementation ensures smooth blockchain operation, similar to Optimism, and the potential for future integration through "SuperChain"
• No Native Coin: There are no plans to issue a coin in the near future, which could be a good thing as the blockchain's growth won't be dictated by coin price, but by developer contributions. Also, there is no risk of market manipulation by whales
• Marketing: The partnership with Coinbase brings strong marketing and trust to the blockchain
• Large Number of Projects: With over 65 projects, the ecosystem is richer and more diversified

Disadvantages

• ‍Centralization: The blockchain is currently highly centralized, although Coinbase has committed to gradually decentralize the network over time‍
• Slow Bridge: Transfers from Base to Ethereum can take up to 7 days due to Optimistic Rollup architecture‍
• No Historical Data: Base has only been live for a few weeks (August, 2023) and has yet to experience a significant user surge‍
• Large Number of Scam Projects - Since anyone can deploy dApps on the Base blockchain immediately upon its launch, scammers are taking advantage of this platform, leading to a high incidence of rug pulls and fraudulent projects. This could be partially happening due to the popularity of Coinbase therefore a higher interest in this blockchain