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 latest Web3 products, and customers may not even know they’re using them. The point is that.
If people are going to use cryptocurrencies and Web3, technology has to fade into the background. In other words, it is too difficult for most people to pretend to be interested in crypto wallets, trading, hacking and everything else that comes with it. But if someone can make Web3 communication easier, it could bring hundreds of millions of people into 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 responded.
One of the hardest things to do in bitcoin is to keep assets safe. You can store crypto assets on the exchange, but you may lose your money if the exchange is hacked or goes bust.
Self-storage is possible with the MetaMask or Coinbase wallet, but you are responsible for all security measures, such as keeping your seed set safe and dealing with transaction results. This is a pain and it makes it harder for people to adopt.
Some of the problems have been fixed with “semi-custodial” wallets, where Coinbase stores some “keys” to your wallet and you keep some on your device. In a blog post, the company wrote the following about the method:
Multi-Party Computation (MPC) technology powers this advanced dapp wallet. MPC allows you to have a separate chain wallet that Coinbase can help you protect. This is because of the way this wallet is set up. The “key” can be shared between you and Coinbase. Finally, even if you lose your phone, your dapp wallet key 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 regular 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 is still self-custody, which reduces the risk of custody risk.
Using more than one chain
MPC’s security features 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 activities 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 have to have both, making all Web3 communication difficult.
By displaying NFTs from different blockchains in one view of the dApp wallet, Coinbase seems to be making the process easier. Few other organizations can do this because they are not as large as Coinbase and do not have the same skills in more than one area. This could help build a multi-chain future that is 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 cryptography and Web3. Not coincidentally, this will make it easier to keep people buying products from Coinbase. As a result, things should improve financially in the long run.
Wallets may not get a lot of attention in the crypto world, but they are very important, and Coinbase may have created the best wallet in the business.
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