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Coinbase acknowledges the technical complexities of blockchain after a technical glitch, and it is now committed to preventing such occurrences by improving technology.
Coinbase, the reputed cryptocurrency exchange, has announced the development of two new wallet solutions: ‘Smart Wallet’ and ‘Embedded Wallet.’ They have been created to simplify the blockchain experience for developers and users.
Coinbase Technical Glitch & Wallet Development
Coinbase users experienced a technical glitch yesterday. The crypto exchange acknowledged that the technical complexities of blockchain, which include handling seed phrases, signing transactions, and gas fees, act as a barrier to entry for many users. Therefore, this platform’s new offerings aim to reduce the learning curve and streamline on-chain onboarding for new users while empowering developers.
This exchange aims to support developers in onboarding billions of users on-chain. The company is excited to share the creation of these two new wallet solutions. Developers can now choose from a smart wallet solution created by Coinbase Wallet. It can be used across several apps or integrate an embedded, app-specific wallet powered by Wallet as a Service.
According to the crypto exchange, the Smart Wallet is the first of two new offerings. It is an addition to the Coinbase Wallet SDK. It allows for instant creation of wallets within decentralized apps (dApps) by using a passkey.
The wallet is built on top of Coinbase’s layer-2 network Base and utilizes a blockchain technology known as account abstraction. That technology gives users recovery options in case they lose their keys. This crypto exchange will also give out credits for gas fees with their Account Abstraction Kit.
The Base team shared in their blog post that their goal for 2024 is to make smart wallets the default. Smart wallets aim to solve the challenges in security and usability that are holding back on-chain adoption today. Thus bringing more users on-chain and letting builders offer simple onboarding and better experiences.
Operating models of Wallets
The embedded wallets will be powered by ‘wallet as a service’, or WaaS for short. The idea is that companies can customize blockchain wallets for their own customers. Its new feature will allow developers to create white-labeled embedded wallets. Those wallets abstract away the complexities of crypto in favor of familiar email and social login flows.
The Smart Wallet is designed to be universally compatible. Thus allowing users to hop between hundreds of EVM-compatible dApps already working with the Coinbase Wallet SDK. Developers can test this feature on the Base Sepolia testnet, giving them a head start on integrating this user-friendly option.
The second offering is Embedded Wallets, powered by their Wallet as a Service (WaaS). This tool enables developers to create custom, embedded wallets that can be integrated directly into their apps using familiar login methods like email or social media.
The focus is on making the crypto experience as smooth and unobtrusive as possible. Developers can sign up for early access to explore this option and start creating more personalized user journeys within their apps.
Coinbase’s Smart Wallet offers simplicity, security, and portability. Its Embedded Wallets promise smooth integration into apps with a focus on user control and security. Coinbase is inviting feedback from the developer community to refine these solutions. It aims for a billion users on the blockchain.
Summary
Coinbase has introduced two new wallet solutions, called ‘Smart Wallet’ and ‘Embedded Wallet’, to simplify the blockchain experience for developers and users. These wallets aim to support developers in onboarding billions of users on-chain.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or any other related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
