The world's Base App: from theory to practice, what really works?

Written by: KarenZ, Foresight News

On December 18th, Coinbase completed the experimental phase of Base App, opening its doors to users from over 140 countries and regions. This is not just a technical update but a significant strategic shift: from infrastructure building to mass adoption. Base App represents Coinbase’s attempt to create a gateway to Web3 through a “super app on-chain” model that integrates social networks, trading markets, payment systems, and complex financial tools.

The declared goal by Base’s head, Jesse Pollak, is straightforward in its simplicity: “Make on-chain interactions as easy as browsing the traditional web.” But between ambition and reality, what distance remains?

How Base App Works: The Bright Side of the Experience

Fearless onboarding

For anyone who has remained an outsider in the crypto world due to technical complexity, Base App offers a radically simplified entry point. There’s no need to memorize or securely store seed phrases. The system relies entirely on Passkeys: meaning creating an on-chain wallet as easily as signing up for any social network. In seconds, even those who have never touched a blockchain find themselves with a functioning account. It’s a paradigmatic shift compared to traditional tools.

Digital identity with a human face

No more cold, impenetrable addresses like “0x7d…”. Base App integrates Basenames, an on-chain identity system that transforms value transfers into a natural gesture: similar to sending a digital red envelope to a friend. Identity becomes a true digital document valid across the entire ecosystem, not just a handle.

The fusion of social and finance

In the main feed, posts from creators appear alongside real-time price buttons. With a single tap, users can switch to trading or activate quick purchase with a double click on a creator coin. The personalized algorithm combines user interactions, interest tests, timeliness, and content diversity, aiming to offer a timeline that is both social and financial.

Internal Architecture: What’s Under the Hood

Base App is not an isolated product but a complex ecosystem:

Closed-loop creator economy: through integration with Farcaster and Zora, every posted content can become a tradable digital asset. It’s the concept of “monetizing the post” put into practice.

Interconnected Mini Apps: the Search section hosts dozens of specialized applications—derivative protocols like Avantis, fantasy football games (Football.Fun), DeFi platforms (Gauntlet, Morph, Moonwell). Each mini-app is a point of contact with the broader ecosystem.

Payments and passive earnings: USDC transfers are free and instant via NFC. Users can activate yields on USDC with an current APY around 3.35%, accumulated daily and distributed weekly.

Encrypted chat and automation: the XMTP protocol guarantees total privacy in conversations, where USDC can be sent directly or communities of up to 250 people can be created. AI Agents can perform complex trading operations or wallet management.

Sponsored gas: many operations have officially covered network fees, although swaps and cross-chain operations incur about a 1% fee on Base.

What Still Doesn’t Work: Cracks in the Foundation

Behind the sleek interface and smooth onboarding, structural issues persist:

The social island effect

For a platform that defines itself as a “super app on-chain,” critical mass of users is essential. If Base App doesn’t reach a sufficient activity threshold, social functions fall into a vicious cycle: feed filled with old content, declining retention rates, very few valuable interactions. The network effect, crucial for success, becomes the bottleneck.

Feed quality remains fragile

The algorithm is not transparent, and the content pool is saturated with speculative or insignificant posts. Deep interactions are rare. It’s unclear what balance the platform will find between virality and editorial quality.

The “liquidity trap” in social trading

The social trading section works by showing collective purchases to incentivize copy trading. With a still limited user base, this feature loses statistical significance: what appears may just be the random noise of a few traders. Market depth remains insufficient.

Security risks still exist

The ease of use of Web2 brings Web3 vulnerabilities. Phishing links hidden in well-crafted posts still exist. For beginners used to the security of traditional platforms, a mistake can mean losing permissions—a serious challenge still present in the on-chain world.

The Real Challenge: Convert and Retain

Base App has over 100 million potential users through Coinbase’s customer base. The real test is not about the sophistication of features—which are already impressive—but about conversion and retention. How to turn traditional Coinbase users into active Base App users? How to keep them engaged over time?

Conclusion: The Changing Model

The full openness of Base App marks the transition of the Base ecosystem from the “infrastructure phase” to “market competition.” By combining wallet, trading, social network, creator economy, payments, and mini-apps into a single interface, the platform builds a powerful gateway to on-chain traffic.

For developers, the Mini Apps framework offers a direct shortcut to Coinbase’s vast user base. Despite significant challenges remaining in content governance and sustained user engagement, Base App presents a very clear model: the future of Web3 will not be an isolated, cold wallet, but a lively, interactive on-chain society capable of generating real value for its inhabitants.