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Coinbase launches wallet-as-a-service for businesses

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Summary

Coinbase has launched a new business solution called Wallet-as-a-Service (WaaS) to help businesses offer Web3 wallets to their customers. WaaS provides an API to create wallets, while using multi-party computation (MPC) to ensure more secure key storage. WaaS is being used by companies such as Floor, Moonray, thirdweb and tokenproof, and is seen as a way to foster the growth of Web3 infrastructure during the current crypto winter.

Q&As

What is Coinbase's wallet-as-a-service solution designed to do?
Coinbase's wallet-as-a-service solution is designed to provide enterprises with the technical infrastructure to create and launch customizable on-chain wallets.

How does Coinbase's WaaS toolkit help enhance private key security?
Coinbase's WaaS toolkit incorporates multi-party computation (MPC), a form of cryptography that allows multiple parties to jointly compute a function without revealing their inputs to one another. This enhances private key security within Web3 platforms.

What challenges has Web3 wallet adoption faced?
Web3 wallet adoption has faced challenges due to their complexity, poor user experience, and the challenges associated with maintaining mnemonic seeds.

How have companies reacted to Coinbase's WaaS infrastructure?
Companies have reacted positively to Coinbase's WaaS infrastructure, with many using it to create wallets for simple customer onboarding, loyalty programs or in-game purchases.

What is the future vision of the decentralized internet?
The future vision of the decentralized internet is one in which token-gated content, loyalty programs on-chain, and deep integrations between games and assets owned by users are possible.

AI Comments

👍 Coinbase's wallet-as-a-service is an innovative and impressive solution for businesses to provide their customers with a seamless and secure Web3 experience.

👎 Coinbase's wallet-as-a-service is still complex and challenging for the average user to understand and use, which may hinder its widespread adoption.

AI Discussion

Me: It's about Coinbase launching a wallet-as-a-service for businesses. They say it will help streamline the adoption of Web3 products and services by providing a wallet API that businesses can use to create wallets for customer onboarding, loyalty programs or in-game purchases. It also uses multi-party computation to enhance private key security within Web3 platforms.

Friend: Interesting. What are the implications of this?

Me: Well, this could be a great way to increase the adoption of Web3 wallets and make them more accessible to businesses. It could also help improve security and reduce the risk of key loss. It could also potentially lead to more companies building for Web3 ahead of the next bull market, which could result in more token-gated content and more integration between games and user-owned assets.

Action items

Research more about Web3 wallets and the challenges associated with them.
Explore the Coinbase WaaS solution and how it can help businesses streamline the adoption of Web3 products and services.
Experiment with MPC crypto wallets and how they can help users store their digital assets more securely.

Technical terms

Web3: A term used to describe the next generation of the internet, which is built on decentralized technologies such as blockchain and distributed ledger technology.
Wallet-as-a-Service (WaaS): A business solution provided by Coinbase that allows enterprises to create and launch customizable on-chain wallets.
API: Application Programming Interface, a set of protocols and tools for building software applications.
Mnemonic Seeds: A set of words used to generate a private key for a cryptocurrency wallet.
Multi-Party Computation (MPC): A form of cryptography that allows multiple parties to jointly compute a function without revealing their inputs to one another.
Software Development Kits (SDKs): A set of tools and libraries used to develop applications for a specific platform.
Token-Gated Content: Content that is only accessible to users who possess a specific token.
Staking: The process of holding cryptocurrency in a wallet to earn rewards.