The leading crypto exchange Coinbase has introduced a new Wallet-as-a-Service offering for businesses to seamlessly onboard their users to Web3
The new Wallet-as-a-Service (WaaS) product from Coinbase enables all types of companies to build fully customizable on-chain wallets for their customers. They can store digital assets, facilitate transactions and act as the user’s digital identity proofs.
“In a world where wallets are simple, companies can finally build Web3 experiences accessible to everyone regardless of technical knowledge,” stated the crypto exchange representatives in a dedicated blog post.
Coinbase WaaS enables businesses to create their own Web3 wallets with the help of APIs, offer them to their customers directly in branded apps and onboard the customers with just a username and password.
Expanding their Web3 solutions, in its turn, will help companies better engage and serve their customers with immersive experiences and personalized shopping features. Accordingly, they can build stronger and more loyal communities, encourage token-based reward redemption and discover new revenue streams.
According to Coinbase, the complexity of developing a Web3 wallet prevents many businesses from exploring new opportunities in the space. Besides, many wallets have counterintuitive UIs which don’t facilitate customer adoption either.
WaaS adds simplicity to the process of wallet usage, as it doesn’t require end clients to manage a complicated 24-word recovery phrase. This is possible due to the Multi-Party Computation (MPC) cryptographic technology.
MPC allows a cryptographic ‘key’ to be split between the end user and Coinbase. Therefore, self-custody keys remain safe even when the user’s device is compromised. Additionally, advanced and automatic backup with MPC guarantees the safety of the given key even in cases when an end user loses access to their device altogether.
Companies like Floor, Moonray, thirdweb and tokenproof have already started building with Coinbase WaaS. They will use the tool to onboard users to Web3 experiences including gaming, token-gated events, and digital marketplaces.
Recently, a former Coinbase engineer has launched Tribes, a Web3 messaging and group wallet app, that allows users to communicate, co-own and manage digital assets directly through a wallet, versus outside messaging services such as Discord or Twitter.