Coinbase streamlines Web3 adoption with wallet-as-a-service

 

Coinbase has launched a new solution for enterprises seeking to offer Web3 wallets to their customers. The wallet-as-a-service (WaaS) aims to provide customizable on-chain wallets to businesses, streamlining customer onboarding, loyalty programs, or in-game purchases.

According to Coinbase, Web3 wallets have struggled to gain wider acceptance due to their complexity, poor user experience, and challenges associated with maintaining mnemonic seeds. However, Patrick McGregor, head of product at Coinbase’s Web3 Developer Platforms, said that the new solution would reduce implementation costs and complexity, improve security, and reduce risks.

Coinbase’s WaaS toolkit incorporates multi-party computation (MPC), a form of cryptography that enhances private key security within Web3 platforms. MPC crypto wallets split private keys into multiple parts and distribute them among parties involved in the protocol, allowing users to store their digital assets more securely.

The software development kits also provide robust and user-friendly backup functionality, ensuring that users maintain access to their assets. The WaaS infrastructure is already being used by companies such as Floor, Moonray, thirdweb, and tokenproof. What do you think? Will Coinbase’s WaaS help usher in the next wave of Web3 users?

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