One of the leading cryptocurrency exchanges, Coinbase unveiled an innovative smart wallet solution on Feb 29th that aims to streamline the on-chain onboarding processes for better efficiency and security purposes. In a recent blog post, the company acknowledged how complex onboarding experiences remain a major problem in achieving mass-market adoption of on-chain applications. Coinbase has simplified these complexities, which mainly involve seed phrases, transaction signing, and gas fees.
It has developed two new wallet solutions to bring more users onto the blockchain. The first one, called Smart Wallet, developed by Coinbase Wallet, is user-friendly and available on testnet. Users can create wallets within seconds directly from any decentralized application (dApp) using just a passkey. These smart wallets are fully portable across thousands of Ethereum Virtual Machine (EVM) dapps integrated with the Coinbase Wallet SDK.
Simplicity, security, and easy funding are some benefits that come with the Smart Wallet. Like, a new wallet is created instantly without any extra apps or extensions. While, it becomes easier to fund by using Coinbase account balances rather than through complicated transfers. Moreover, this wallet’s portability enables users to check balances from different platforms and even use them in any dApp.
In addition, during the testnet phase, developers can leverage passkey technology for secure signing, test transactions on the Base Sepolia testnet, and access a comprehensive web companion portal where they can monitor wallet activities as well as view balances. On their way towards mainnet launch for development purposes, other features will help support top EVM chains like passkey recovery.
Coinbase’s Embedded Wallets
Coinbase’s Embedded Wallets that are powered by Wallet as a Service (WaaS) bring familiar onboarding experiences for users into apps such as email and social login options. Signup is done in a few seconds, protecting users from gas fees and transaction signing complications. Each wallet is bound to the app it belongs to, allowing them to export keys whenever they want.
The three main advantages of WaaS include its security, immersive user experience, and exportability. For example, WaaS guarantees the safety of users’ assets while making UI customization choices available for developers through leveraging Coinbase’s trusted infrastructure. Moreover, wallets are always under the control of the users, and they can easily send their keys over to compatible wallet applications.
However, looking into the future, Coinbase stresses how crucial it is to have changing pockets that will push for on-chain experiences in the next era. The Base and its ecosystem will offer ongoing support, allowing developers to continue making progress, and stay ahead in determining the direction of blockchain technology.