Coinbase has announced the launch of a new feature that the largest exchange in the U.S. claims will attract millions of users to web3. The new product, “Wallet as a Service” (WaaS), will allow businesses to build new web3 experiences with simplified wallet onboarding.
With the creation of WaaS, companies can integrate native wallets into their applications. Users with access to Web3 multi-party computation (MPC), cryptographic technology that allows users to create a “key” to be shared between the end customer and Coinbase.
Major companies focused on creating Dapps, developing frameworks, and delivering token-based experiences on the web3, such as Floor, Moonray, Thirdweb, and Tokenproof are currently building on Coinbase’s WaaS.
How Coinbase New Product Benefits Web3?
Coinbase claims that this new product could bring hundreds of millions of customers to the Web3, making the experience for customers on different applications or developments simple and secure with infrastructure Application Programming Interface (APIs), which serves as an intermediary, facilitating the exchange of information between two or more applications.
With Coinbase’s WaaS feature, both MPC and APIs allow users to have a “self-custody key” that can be used for more secure experiences even if the computer, mobile, or other device is compromised. Coinbase added:
Today, Coinbase is solving this problem for the industry with Wallet as a Service (WaaS). WaaS is a scalable and secure set of wallet infrastructure APIs, enabling companies to create and deploy fully customizable on-chain wallets to their end users. Companies can offer their users wallets directly in their apps with onboarding as simple as a username and password.
How Does It Work?
According to the exchange, WaaS is designed for businesses that use the new feature to provide “safe, secure and easy access to web3 wallets,” claiming that businesses can “focus on what matters most: delivering more value and innovative products to their customers.
WaaS’ seamless user experience will allow users to access their Web3 wallets with the same ease as navigating Web2, according to an official statement. Users can create, access, and restore their wallets by entering their usernames and passwords.
In addition, Coinbase says WaaS users will have full control over their assets, including the ability to export their keys from Coinbase’s platform at any time. The APIs will also allow Coinbase to maintain a “consistent” user experience without redirecting users to a separate website or app.
Coinbase’s new product follows a series of developments made in recent months for customers and institutions that use the exchange’s services, for new startups, for a more secure ecosystem, and ease of use for customers.
This will facilitate the entry, applications, and experience on the web3, even if the prospective user has not used cryptocurrency before, attracting millions of new users for the exchange.
Featured image from Unsplash, chart from TradingView.com