The fact that the Coinbase App now has a wallet shows how easy the company wants to make Web3. Coinbase (COIN 7.37%) has been working in the background on some of the most innovative Web3 products, and customers may not even know they are using them. The point is that.
If people are going to use cryptocurrencies and Web3, the technology must fade into the background. In other words, it’s too hard for most people to pretend to be interested in crypto wallets, transactions, hacks, and everything else that comes with it. But if someone can make Web3 interactions easier, it could let hundreds of millions of people join the market. Some of that innovation is already here, and it all starts with cryptocurrency wallets like Coinbase.
“Not your keys, not your cryptocurrency” is what Coinbase said in response.
One of the hardest things to do in bitcoin is to keep assets safe. You can store crypto assets on an exchange, but you might lose your money if the exchange is hacked or goes out of business.
Self-custody is possible with MetaMask or the Coinbase Wallet, but you are responsible for all security measures, like keeping your seed phrase safe and dealing with the results of any transactions. This is a pain, and it makes it harder for people to adopt.
Some of the problems have been fixed by a “semi-custodial” wallet, in which Coinbase holds some of the “keys” to your wallet and you hold some on your device. In a blog post, the company wrote the following about the method:
Multi-Party Computation (MPC) technology powers this cutting-edge dapp wallet. MPC lets you have a dedicated on-chain wallet that Coinbase can help you protect. This is because of how this wallet is set up. The “key” can be shared between you and Coinbase. Lastly, even if you lose your phone, the key to your dapp wallet is still safe, and Coinbase’s live support can help you get it back.
It’s important to note that Coinbase calls MPC-powered wallets “dApp wallets,” so that’s what I’ll call them from now on.
In a recent update to the Coinbase app, the MPC wallet made its debut. This suggests that the dApp wallet in your Coinbase app would work like a standard crypto wallet. But it’s easier to use, works with Coinbase’s other products, and has basic security measures to keep your crypto safe behind the scenes. However, it’s still self-custody, which lowers the risk of custodial risk.
Using more than one chain
The security features of MPC are great, but the look of the Coinbase dApp wallet makes it hard to tell which blockchain you were using. At the moment, the wallet is made for the Ethereum blockchain (CRYPTO: ETH), but Coinbase is working on adding support for Solana (CRYPTO: SOL) and other blockchains as well. This could make the Coinbase app a one-stop shop for all cryptocurrency-related activity on any blockchain in the future.
These days, wallets are often split between several blockchains. MetaMask is the market leader for Ethereum, and Phantom is the market leader for Solana. However, there are hundreds more wallets. But since the two blockchains can’t talk to each other, users must have both, which makes the whole Web3 interaction hard.
By showing NFTs from different blockchains in a single view on the dApp wallet, Coinbase seems to be making the process easier. Few other organizations can do this because they aren’t as big as Coinbase and don’t have the same skills in more than one area. This could help build a future with multiple chains that are easy to use and keep blockchain technology hidden from consumers.
Creating the Future of Web3
Coinbase hides the complexity of crypto security and the potential complexity of becoming multi-chain with its dApp wallets in the Coinbase app. This is exactly what needs to happen to get more people interested in crypto and Web3. Not by chance, this will make it easier to keep people buying goods from Coinbase. As a result, things should get better financially in the long run.
Wallets may not get much attention in the crypto world, but they are very important, and Coinbase may have just made the best wallet in the business.
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