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Coinbase launches Wallet as a Service, making it easy to create and integrate custom wallets on-chain.

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Coinbase launches Wallet as a Service, making it easy to create and integrate custom wallets on-chain.

The U.S. compliant exchange Coinbase has announced the launch of Wallet as a Service (WaaS) service, which provides customized on-chain wallets for partner companies. Customers can create wallets by entering their username and password on a traditional Web 2 interface without the need for complex seed phrases, enabling them to manage their on-chain assets. Several companies have already joined the partnership.

Solving the Pain Points of Web 3 Wallets

A cryptocurrency wallet can store digital assets, facilitate transactions, and even serve as a form of identity verification. However, the complexity of mnemonic phrases and the challenging user interface have deterred many people, posing a challenge for businesses looking to enter the Web 3 space.

Coinbase has introduced Wallet as a Service (WaaS), which is a set of scalable and secure wallet infrastructure APIs that allow businesses to directly integrate wallets into their applications, providing wallets to their users. This enables gamers to trade in-game items and currencies, while businesses can issue token rewards for loyalty programs.

Coinbase highlights the following features of its service:

Seamless User Experience: Similar to traditional Web 2 usage. Users can create, explore, and recover their wallets through simple identity verification like usernames and passwords.

Security: Wallets deployed using WaaS utilize multi-party computation (MPC) to enhance security, helping protect user assets by securely dividing, encrypting, and distributing keys among multiple parties.

Key Ownership: Users have full control over their assets, including the ability to export their keys from the platform at any time.

API Integration: Easily integrate wallets into applications through APIs to maintain a consistent user experience without redirecting users to other websites or apps.

Several businesses have already partnered with Coinbase, such as Floor, Moonray, thirdweb, and tokenproof, allowing users to experience Web3 in games and NFT marketplaces.

Becoming the Gateway to Web 3

Coinbase has also announced another gateway website that integrates various dapps, including Uniswap, Opensea, Blur, and more, along with blockchain distinctions such as Ethereum and Polygon, categories, ratings, and more to provide a clear overview for crypto newcomers.