Coinbase Launches Wallet-as-a-Service to Encourage Use of Web3 Wallets
Premier cryptocurrency exchange Wallet-as-a-Service (WaaS), introduced by Coinbase, is a new enterprise solution that aims to speed up and standardise the implementation of Web3 wallets.
Businesses will have access to the tools and resources they need to develop and release their own unique on-chain wallets thanks to this platform. With the included wallet API, organisations may design wallets for streamlined client onboarding, loyalty programmes, and in-game purchases.
When asked what was holding back the widespread use of Web3 wallets, Coinbase cited the complexity of seed phrases and the poor user experience they provided. According paraphrase Patrick McGregor, director of product for Coinbase’s Web3 Developer Platforms, “control over end-to-end product experiences,” lowers “implementation cost and complexity,” and increases security while decreasing risks are all benefits of WaaS.
Web3 wallets have had a hard time breaking into the mainstream because to their complexity, poor user experience, and the difficulties involved with preserving mnemonic seeds. Today’s businesses must compel their customers to wade through complex onboarding processes, where they are often prompted to install external, non-custodial wallets.
When consumers are constantly jumping between several apps, it’s impossible for a business to successfully onboard them and get them using the product.
WaaS makes use of multi-party computation (MPC), a branch of cryptography that enables many parties to collaboratively calculate a function without disclosing their respective inputs. Private key security in Web3 environments is believed to be improved by MPC. By dividing the private key into many pieces and distributing them to other nodes in the protocol, an MPC crypto wallet improves the safety with which digital assets may be stored.
By introducing WaaS, Coinbase hopes to ease the process of adopting Web3 goods and services for a larger audience. By the usage of the platform, businesses may design unique Web3 wallets for their clients, streamlining the onboarding process and improving the quality of service for all parties involved. Companies and consumers alike may profit from WaaS since it is a safe and affordable way to implement Web3 wallets.
For the most part, the problems that have been slowing down the widespread use of Web3 wallets may be overcome by using Coinbase’s WaaS. The platform streamlines the onboarding process and improves the user experience by providing companies with the technological foundation to develop unique wallets. Private keys are made more secure thanks to MPC technology’s incorporation, which in turn boosts the Web3 platform’s security. By making it simpler for customers to get access to and use Web3 services, Coinbase is helping to pave the path for their widespread adoption via its WaaS offering.