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The Green Sheet Online Edition

April 10, 2023 • Issue 23:04:01

New Products

Embed custom digital wallets directly into your app

Product: Wallet-as-a-Service
Company: Coinbase

Coinbase launched Wallet-as-a-Service (WaaS) in March 2023, a set of developer tools designed to drive broad cryptocurrency adoption by making it easier for companies to embed customized digital wallets directly into their applications. The solution also complements its Base solution for Web3 applications, the company stated.

Brian Armstrong, CEO at Coinbase, mentioned he has seen major brands, including Starbucks, Nike and Coca Cola, become more receptive to Web3 applications, which rely on digital wallets. Unlike traditional digital wallets that hold users responsible for securely storing wallet keys, WaaS uses multiparty computation (MPC), a form of cryptography that shares a private wallet key with multiple parties, eliminating the self-custody wallet's single point of failure, he noted.

The Coinbase SDK provides backup functionality to help users maintain access to digital assets, Armstrong said, pointing out that Floor, Moonray, thirdweb, tokenproof and other Web3 companies are using Coinbase's WaaS infrastructure.

Safe, trusted, easy-to-use platform

In a cover letter submitted with Coinbase prospectus to the Security and Exchange Commission, in May 2020, Armstrong stated that Coinbase is building a supporting infrastructure to power the crypto economy and share this new technology with the world. While Coinbase partners and customers think of the company's platform as a safe, easy way to buy, sell, store, save, spend and use cryptocurrency, he noted numerous customers use Coinbase as a primary financial account.

"Coinbase is building a portfolio of different products and services that connect to this primary financial account, and we're enabling third-party products and services to be connected as well," he wrote, adding that the company's ultimate aim is to create economic freedom. "The current financial system is rife with high fees, delays, unequal access, and barriers to innovation," he wrote. "In many countries, citizens don't have access to sound money, a functioning credit system, or even basic property rights. If the world economy ran on a common set of standards, that could not be manipulated by any company or country, the world would be a more fair and free place and human progress would accelerate." A copy of the entire letter is available at: www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm

Popular wallet styles

Coinbase supports an array of crypto wallets, the company stated, citing these popular styles:

  • Hosted wallets: Cryptocurrencies held by a third party eliminates worry about losing keys or hardware. However, hosted wallets do not always provide all the features and functionality of self-custody wallets.
  • Self-custody wallets: The ability to directly access funds without relying on a third party service provider is considered a plus but individuals also bear responsibility for remembering and safeguarding their cryptocurrencies.
  • Hardware wallets: A physical device that's approximately the size of a thumb drive is a secure way to store cryptocurrencies and can protect crypto even when a computer is hacked. However, these form factors require more steps to set up and use and can be expensive.

Coinbase representatives noted that there are many ways to store cryptocurrencies and that some customers use more than one type of wallet to take advantage of features and benefits. For example, non-custodial wallets give users full control of their funds and hardware wallets provide an extra layer of protection.

WaaS and Web3

WaaS provides individuals, developers and enterprises with the full capabilities of Web3 without sacrificing simplicity, Coinbase representatives noted, adding that users can create, access and restore their digital wallets using simple authentication, comparable to username and password. In addition, users fully control their assets and can export keys off the platform at any time.

Developers can use Coinbase APIs to build native wallet capabilities directly into their apps, the company added, to create on-chain wallets, enable Web3 interactions and personalize customer journeys. end of article

Website: https://coinbase.com Contact: support@coinbase.com

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