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Over the last decade, the Web3 ecosystem has grown massively thanks to decentralized finance (DeFi), NFTs, and decentralized autonomous organizations (DAOs). This growth has led to increased developer activity, user transactions, and more.
However, Ethereum, the leading smart contract blockchain network on which most decentralized applications (dApps) run, faces scalability issues. While the network is still improving, including pushing multiple upgrades such as the Merge, user activity frequently congests the Ethereum network, leading to slow transaction speeds and high transaction fees.
Ethereum’s scalability limitations are a direct roadblock to the growth and adoption of the network. Scalability improvements would mean faster transactions, lower fees, and a smoother user experience: all critical for mass adoption. That’s where Ethereum scaling solutions, like Coinbase’s layer-2 blockchain Base, come in.