Coinbase introduces a new solution to increase Web3 adoption among various businesses.
Coinbase, an American cryptocurrency exchange, launched a Wallet as a Service to help businesses to build customized wallets for their customers. It is believed that with the most recent launch, Coinbase aims to boost Web3 adoption among various firms.
According to the crypto exchange, Web3 wallets are not gaining mass adoption because of their technical complexities.
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Hence, the Wallet as a Service (WaaS) will allow companies to integrate digital wallets into their applications. Through the WaaS, Coinbase intends to ease the process of setting up a Web3 wallet. To access their wallets, customers will use usernames and passwords rather than storing keyphrases.
Some major companies have already started using Coinbase WaaS, including Tokenproof, Moonray, Floor, and Thirdweb.
Patrick McGregor, Coinbase Web3 Developer Platforms product head, answered the question of how the solution will solve standalone Web3 wallet complexities by saying:
The new solution provides control over end-to-end product experiences, a reduction in implementation cost and complexity, and helps brands improve security while reducing risks. Today, companies are forced to push their users through confusing onboarding flows, often instructing users to download third-party self-custodial wallets. This context switching results in high drop-off rates during onboarding, meaning a company is never able to deliver its product to users.
The WaaS, although a Web3 wallet, uses a Web2 interface. Coinbase highlighted that solution's design makes using the wallet easy even for people who know almost nothing about Web3 security.
The WaaS users do not need to manage their private keys. Coinbase is set to securely encrypt, divide, and share the keys among various parties via an advanced Multi-Party Computational (MPC) method.
In other Coinbase-related news, the company was recently sued by a Coinbase user over a SIM-swapping attack.