Coinbase Expands Wallet-as-a-Service with New User-friendly Features
Summary:
Coinbase is developing two new wallet features, one that allows easy balance transfer across Ethereum Virtual Machine (EVM) applications and an embedded wallet for smooth integration of noncustodial, white-labeled wallets in applications. These features expand the scope of Coinbase's Wallet-as-a-Service (WaaS) product line, facilitating developers to integrate digital wallets into their apps, aiding businesses planning to assimilate digital assets into their offerings. The transition is powered by multi-party computation (MPC) technology, operating entirely off-chain. This follows Coinbase's recent discontinuation of native Bitcoin support on its Coinbase Commerce platform.
Coinbase, the digital assets platform, is creating two novel wallet features concentrated on incorporating balance transfers across various Ethereum Virtual Machine (EVM) operations. This move is intended to simplify the onboarding process for developers onto its secondary blockchain network, Base. The planned solutions include an intelligent wallet that allows users to migrate their balances across various EVM-compliant applications integrated with the Coinbase Wallet software development kit. The second proposed feature is an inbuilt wallet, designed to help developers seamlessly integrate noncustodial, white-labeled wallets within their applications.
With these introductions, Coinbase aims to reduce developers' difficulties they encounter in optimizing user experience while developing Web3 products. Yuga Cohler, Coinbase Embedded Wallets' senior engineering manager, stated this has been an ongoing endeavor based on lessons learned over the past year.
These developments extend the scope of Coinbase's Wallet-as-a-Service (WaaS) suite—a model which lets developers incorporate digital wallets into their proprietary applications without having to create the underlying technology. This aids businesses seeking to integrate digital assets within their existing products and services. In contrast to the self-custodial wallet model, WaaS offers a more seamless, native solution, minimizing the need to exit their applications.
Cryptocurrency exchange Bitgo also offers a WaaS product, inclusive of custodial and noncustodial wallets for enterprises. Both Coinbase's and Bitgo's offerings are driven by multi-party computation (MPC) technology, permitting various parties to compute outcomes based on their confidential data without revealing it to others. This technology operates completely off-chain and doesn't rely on smart contracts. Coinbase uses a specific MPC protocol developed in-house.
Coinbase recently discontinued support for native Bitcoin on its merchant payment platform, Coinbase Commerce. This move was due to challenges encountered while updating its EVM payment protocol for Bitcoin, as reported in the magazine DeFi's billion-dollar secret: The insiders responsible for hacks.
Published At
3/1/2024 7:35:11 PM
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