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Circle launches Wallet as a Service in an attempt to lower the barriers to entry for Web 3.

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Circle launches Wallet as a Service in an attempt to lower the barriers to entry for Web 3.

The stablecoin issuer Circle has launched a programmable Web 3 wallet in an effort to lower the barriers to entry for Web 3, making it easier for traditional Web 2 developers, large enterprises, and fintech companies to use stablecoins. This wallet also supports various applications such as digital wallets and NFTs.

Circle Web3 Services Aims to Lower Barriers to Web 3 Entry

Circle CEO Jeremy Allaire mentioned Circle Web3 Services' new technology product during an interview with CoinDesk Japan in June. He stated that the purpose of this service is to make it easier for traditional Web2 developers, large enterprises, fintech companies, and of course, Web3 developers to use stablecoins and support various applications such as digital wallet applications and NFTs.

The first product launched by Circle, the programmable wallet, will support enterprises in developing brand applications, games, payments, and other applications using Web3 technology. In other words, application developers can integrate Web3 technology into their applications using Circle Web3 services. At that time, he mentioned that Circle had just launched a commercial test version of the wallet and emphasized that this is a technical service, not a financial service.

Circle's Web 3 Wallet

Cryptocurrency wallets can store digital assets, facilitate transactions, and even serve as identity verification. However, the complexity of mnemonic phrases and difficult user interfaces have deterred many people and posed challenges for many businesses looking to enter the Web 3 space.

Circle's Wallet as a Service (WaaS) is a set of scalable and secure wallet infrastructure APIs that allow businesses to directly integrate them into their applications. Built on multi-party computation (MPC) technology, it provides comprehensive developer solutions for storing, sending, and receiving Web3 digital currencies and NFTs.

Multi-party computation (MPC) involves distributing key sharing among multiple parties to manage private keys and prevent accidental or intentional misuse.

This wallet features a user interface similar to traditional Web 2 interfaces, where users can create a wallet by simply entering a username and password, without the need for complex mnemonic phrases. The MPC technology helps prevent theft and unauthorized use. Circle plans to sponsor blockchain transaction fees in the future to reduce complexity for users.

Businesses can decide whether to manage assets custody themselves or have users manage it. Circle is responsible for providing a one-stop experience, including security, transaction monitoring, and account recovery procedures to address complex issues. Developers only need to build once and can use it on multiple blockchains, currently supporting Ethereum, Polygon, and Avalanche, with more chains to be introduced gradually.

Coinbase Also Offers Wallet as a Service

Coinbase, a partner of Circle and a compliant U.S. exchange, launched the Wallet as a Service (WaaS) in March, providing customized on-chain wallets for partner businesses. Customers can create wallets by entering a username and password on a traditional Web 2 interface, without the need for complex mnemonic phrases, enabling them to manage their on-chain assets and addressing pain points of Web 3 wallets to attract more businesses.

It seems that while competing for market share, everyone is actively expanding the pie, hoping to attract more customers to the cryptocurrency industry.