Coinbase Forges Ahead with Innovative Wallet Solutions for Developers
Cryptocurrency exchange Coinbase is gearing up to roll out two new wallet solutions aimed at streamlining integration and balance transfer within Ethereum Virtual Machine (EVM) applications.
These new offerings are poised to facilitate developers’ seamless transition onto its layer-2 blockchain, Base.
One of the forthcoming solutions is a smart wallet, empowering users to effortlessly transfer their balances across various EVM-compatible applications integrated with the Coinbase Wallet SDK. The second feature is an embedded wallet, providing developers with the capability to seamlessly integrate noncustodial, white-labeled wallets into their applications.
According to Coinbase, both features have been meticulously crafted to address developers’ pain points concerning user experience when building Web3 products.
Yuga Cohler, senior engineering manager at Coinbase Embedded Wallets, underscored the significance of this development, stating, “We’ve learned a lot from our customers in the past year, and we’ve been working a lot to improve the product experience of all of the services, and where we’ve arrived at is the Embedded Wallets.”
This strategic move marks an expansion of Coinbase’s wallet-as-a-service product line, a model that empowers developers to seamlessly integrate digital wallets into their applications without the need to develop the core technology from scratch. Such a solution holds immense value for companies seeking to incorporate digital assets into their products and offerings.
Cohler shed light on the significance of this model by contrasting it with the self-custodial wallet approach. He explained, “If you go to a DApp like Uniswap or OpenSea, you generally have to have a Chrome extension, or you have to visit it on your own custodial app. And so what we’re trying to do is provide APIs that allow these DApps to create wallets on behalf of their users, but still in a native way, so they don’t have to go outside of the DApp.”
Wallet-as-a-service has emerged as a popular offering in the crypto space, with industry players like crypto custodian BitGo also offering similar services, encompassing both custodial and noncustodial wallets tailored for enterprises.
Both BitGo’s and Coinbase’s solutions harness the power of multiparty computation (MPC) technology, enabling multiple participants to compute results based on their private data without revealing it to one another or to an external entity.
Explaining the technology, Cohler stated, “This technology does not use smart contracts. The cryptography of MPC happens entirely off-chain. And it’s a protocol, there are many different MPC protocols. Coinbase has one that we use in-house.”
It is worth noting that on February 29, Bitcoin traders have experienced an extremely huge loss of approximately $100 billion in just minutes due to a recent glitch on Coinbase.
This glitch occurred as Bitcoin surged past the $64,000 mark, sparking immense excitement in the financial mark. However, management said that the issue has been resolved.
