Base, Coinbase’s Ethereum Layer 2 network, plans to roll out its Cobalt upgrade in September 2026, embedding native account abstraction directly into the protocol. This move will enable gas sponsorship, transaction batching, and session keys as built-in functions rather than relying on middleware.
Protocol-Level Enhancements
The Cobalt upgrade introduces gas sponsorship, allowing parties other than users, such as dApp creators or protocols, to cover transaction fees. This could lower barriers for user interactions on Base. Transaction batching lets users combine several operations into one transaction, reducing costs and confirmation times. Session keys will let users delegate limited, temporary access to applications without handing over full wallet control.
Previously, the ERC-4337 standard provided account abstraction but worked as an overlay layer requiring integrations with bundlers and paymasters. Cobalt replaces this by integrating smart accounts within Base’s core protocol, streamlining developer and user experiences.
Cobalt builds on the Beryl upgrade that launched in June 2026, which introduced the B20 native token standard and cut ETH withdrawal latency to five days. It will also implement a unified node binary that combines consensus and execution clients, requiring node operators to update software and activate new RPC methods.
Base is positioning itself for autonomous AI agent infrastructure, where native gas sponsorship paired with session keys enables agents to process transactions efficiently without holding personal gas. Batching will help keep transaction volume and costs manageable for these agents.
As of mid-July 2026, no significant market moves or token launches have occurred related to Cobalt. Compared to other Layer 2 solutions that still depend on overlay protocols like ERC-4337, Base’s native account abstraction may present a competitive edge. Still, modifying protocol-level elements can carry risks if unforeseen issues arise.
