In this article, we’ll be discussing Coinbase’s new offering, the Wallet as a Service (WaaS), which allows companies to create and deploy customizable on-chain wallets to their users.
Key Takeaways:
Coinbase, a major cryptocurrency exchange based in the United States, recently introduced Wallet as a Service (WaaS).
This new service allows businesses to produce and distribute personalized on-chain wallets to their clients.
The new service is designed to offer a seamless wallet-onboarding experience to users, as traditional crypto wallets are difficult to access due to their complex mnemonic seeds and counterintuitive user interfaces.
To simplify the process, Coinbase’s WaaS uses Multi-Party Computation (MPC) cryptographic technology that avoids the use of complicated 24-word recovery phrases.
The use of Multi-Party Computation (MPC) cryptographic technology in Coinbase’s WaaS allows the ‘key’ to be divided between the user and Coinbase, ensuring that even if the end-user loses their device, the key to their Web3 wallet is still safe and can be recovered securely.
Coinbase’s WaaS enables companies to customize blockchain wallets for their customers.
With simple wallets, companies can build Web3 experiences that are accessible to everyone, regardless of their technical knowledge.
According to the company, their WaaS has the potential to attract the next hundred million customers to Web3 by providing an effortless onboarding experience for their wallets.
The current onboarding flow is often complicated for most regular people, as they need to get a crypto asset, then a wallet and find something to do with that wallet.
Coinbase’s WaaS revolutionizes this flow by enabling users to access Web3 wallets through Web 2.0 technology like usernames and passwords, avoiding the use of seed phrases.
Coinbase’s WaaS also has multi-party computation capabilities that keep user assets safe by distributing information across multiple parties and key ownership, giving users complete control over their assets.
The API-oriented product was developed by the same team that created Coinbase’s wallet infrastructure for the rest of its business.
The WaaS allows companies to natively integrate wallets directly into their apps, so users won’t be redirected to separate applications to connect their wallets.
Several companies, including Floor, Moonray, Thirdweb, and Tokenproof, are currently implementing Coinbase’s WaaS to allow users to access Web3 experiences ranging from NFT marketplaces to token-based experiences.
Will Robinson, VP of engineering at Coinbase, said that the current onboarding flow is backwards for most regular people, and what people want is to use an application and engage with a brand.
With the WaaS, users can have a seamless wallet-onboarding experience, making it easier for them to engage with brands and access Web3 experiences.
Coinbase’s new offering is expected to onboard the next tens to hundreds of million users into Web3.
Coinbase’s new WaaS is designed to make the process of accessing crypto wallets and Web3 experiences easier and more accessible to everyone.
With the use of MPC cryptographic technology and multi-party computation capabilities, users can have complete control over their assets and be assured of their safety.
The WaaS has been implemented by several companies and is expected to onboard millions of new users into Web3.
