Coinbase Unveils Web 3.0 Wallet-as-a-Service Platform

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• Coinbase has launched a wallet service to drive the adoption of Web 3.0 by simplifying interaction with the virtual world
• The service targets institutions looking to bring their customers to the blockchain world
• The service allows institutions to create customized user wallets for in-game purchases

Leading U.S. crypto exchange Coinbase has launched Wallet as a Service (WaaS) to drive the adoption of Web 3.0 products by simplifying interaction with the virtual world. The service allows institutions to create customizable user wallets that can be used to purchase in-game items or even store loyalty points on the blockchain. A Coinbase executive hinted that the wallet service will run on its recently-launched Ethereum layer-2 platform called Base, which it popularized using free NFTs.

Lower Risks and Implementation Costs

The exchange noted that the service will remove the complexity associated with crypto and Web 3.0 wallets while also enhancing user experience. According to Coinbase’s Patrick McGregor, WaaS minimizes wallet risks and “implementation costs.” 

1/ Today we introduce Wallet as a Service, making it easier for any company or brand to seamlessly onboard their users to web3 ????️⛓️

…even if they have never used cryptocurrency before. pic.twitter.com/5IKUJHpQlS

— Coinbase (@coinbase) March 8, 2023

The executive added that the current framework involves a complex onboarding process that hinders quality interaction between a Web 3.0 product and its intended users. The Coinbase WaaS employs multi-party computation (MPC), a technology touted to increase wallet security since a private key is divided into multiple decentralized chunks.

5/ Companies like @floor, @moonraygame, @thirdweb, and @tokenproof are starting to build with Wallet as a Service to onboard users to web3 experiences across gaming, token-gated events, and digital marketplaces.

— Coinbase (@coinbase) March 8, 2023

The service is already in use with Coinbase revealing that tokenproof, thirdweb and Moonray are among Web 3.0-centric companies already using WaaS with more partners to be announced later. 

WaaS + Base, Independent but Compatible

According to McGregor, the wallet service can be used by different companies whether in social media, gaming or retail. The executive revealed that the service will be combined with Base although the two are independent products.

The initiative comes a week after the exchange launched Crypto435, a campaign meant to promote virtual currencies at the grassroots while also targeting to shape crypto policies in all 435 United States Congressional Districts.

With Coinbase currently battling regulators and fighting claims it’s responsible for a $96,000 SIM swap loss, it’s to be seen whether the WaaS will attract a sizable following.