Highlights:
- Cryptocurrency exchange Coinbase Global Inc. has unveiled a new “Wallet-as-a-Service” offering that would enable businesses and developers to integrate cryptocurrency wallets into Web3 applications quickly.
- Coinbase calls Wallet-as-a-Service a “strong tool for organizations looking to tap into the possibilities of Web3,” allowing gamers to swap in-game items and cash or create new token-based loyalty programs.
Cryptocurrency exchange Coinbase Global Inc. has unveiled a new “Wallet-as-a-Service” offering that would enable businesses and developers to integrate cryptocurrency wallets into Web3 applications quickly.
In tandem with the introduction of blockchain technology and decentralized economies, the rise of Web3 has sparked an increased commercial interest. Web3-based digital assets, such as nonfungible tokens, can represent in-game products, loyalty tokens, and virtual tickets, among other things.
Retailers have utilized NFTs to engage consumers in loyalty programs by providing them with free items, discounts, VIP gated access, and more. Starbucks Corporation has been exploring a program that offers in-store bonuses through its Odyssey loyalty rewards program.
Wallet as a Service is a “powerful tool for companies wishing to tap into the possibilities of Web3,” according to Coinbase, whether they’re enabling gamers to exchange in-game items and cash or developing new pathways for token-based loyalty programs.
Developers and users may find storing and interacting with these digital assets complex since they are housed in crypto wallets, which frequently need specialized expertise or third-party applications. Wallet applications can be challenging to comprehend, need complicated codes to secure crypto assets, and impede user adoption.
By utilizing Coinbase’s new Wallet as a Service offering, businesses can quickly incorporate scalable, secure wallets straight into their products without these complications. The product lets developers personalize on-chain wallets for their end customers and provide them access using simple username and password combinations.
Some other wallets demand users to remember intricate 24-word seed phrases for recovery and lengthy, convoluted wallet addresses of 26 to 35 random characters for receiving and moving assets, which can be exceedingly inconvenient. By allowing developers to eliminate this and simplify the complexity of the wallet within their apps, consumers can enjoy the app’s experience.
As the wallet service links with Coinbase, customers do not need to be concerned if their device is hacked. Coinbase WaaS is powered by multiparty computation encryption; thus, the assets saved on the device are still secure. The firm also supports automatic backups with MPC, so even if the user’s device is lost or stolen, the key to their Web3 wallet may be preserved safely.
Web3 firms have already begun development with the Coinbase WaaS, including NFT portfolio tracker Floor, play-to-earn blockchain game Moonray, Web3 development framework Thirdweb, and privacy-centric ownership proof application Tokenproof.
Alfonso “Fonz” Olvera, founder and chief executive of Tokenproof, said, “Tokenproof is on a mission to make Web3 more accessible to a new wave of users. Individuals will no longer have to come with knowledge of how the blockchain works to interact with the brands they love. When users download the Tokenproof app, we’ll help welcome them into Web3 by creating their first wallet, which will be powered by Coinbase.”
Coinbase’s outreach to developers and companies continues with this release. In February, the business introduced Base, a developer-friendly Ethereum Layer 2 blockchain network that enables quick deployment of low-cost, scalable Web3 decentralized applications.
