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- 1 By enabling the wallet with decentralized encrypted messaging, Coinbase amped up the overall functionality of its network.
- 2 The XMTP network addresses existing issues and enables users to do a lot more with their transactions.
Coinbase has decided to enable its wallet with decentralized, encrypted messaging. The news received very positive reactions from the crypto communities across the globe. In an official blog post, the company announced that its wallets will now work as per the XMTP framework.
What is the New Update All About?
It is an open protocol that facilitates Web3 messaging and addresses some other existing issues too. Many Coinbase wallet users have complained about tokens being sent to other addresses. This update will fix all such bugs and make the wallet safer and more adaptable. It would enable the users to make payments to other networks securely. They are Unstoppable Domains, Lens profiles, ENS domains, and CB.IDs.
This enhanced scalability will enable the token holders to make better connections with the users of other networks. It would give them the ability to make offers on NFTs and to pay others without any intermediary. In addition to that, the functionality will allow the users to export their chats to any other XMTP-compatible app.
It would let the users send USDC stablecoin without charging any fee for gas. According to experts, this is a watershed moment for the Web3 wallet space. Apparently, this mechanism will make the transferring, trading, holding, buying, and selling of crypto wallets very easy. With an encrypted interaction functionality, the Coinbase network will eliminate some major frailties.
Before sending or receiving the tokens, it would confirm their credentials. As per some analysts, the developers may have worked on this update in light of the recent standoff between the exchange and SEC. The regulator alleged that Coinbase offers unregistered securities and is even unaware of the fact it’s violating security laws in the country.
How is SEC’s Allegations Impacting Coinbase?
Initially, it was kind of a setback to the exchange. However, many other developments in the crypto sector may have weighed down the impact of these lawsuits. First of all, the crypto domain is now gaining the support of traditional big finance players too.
The Bitcoin ETF filing by BlackRock worked like a booster for the entire crypto industry. It has caused a steep rise in blockchain prices and has paved the way for many other possibilities. The exchange, on the other hand, is doing just fine as it was earlier.
Yet, it is preparing itself for the worst-case scenario if the judge takes a decision in favour of the SEC. With this new update, Coinbase will hopefully be able to gain more popularity among crypto users. It may go on to gather more crypto users and enhance its worth in the markets.
Conclusion
The investors surely want to think this way, and they’re betting that this update is a bellwether of many positive happenings. On the functionality front, it surely makes a mark by bringing more anonymity and speed. It is offering a seamless channel for the users for payments and interaction with other token holders. If the update works well for the crypto holders, other exchanges may also follow suit. All in all, it is making Coinbase a better option for crypto users.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
