Coinbase, the leading U.S. cryptocurrency exchange, is introducing two innovative wallet solutions aimed at simplifying the process of onboarding new users into the world of crypto. These features, called the smart wallet and embedded wallets, address common challenges associated with the cumbersome user experience of creating crypto wallets.
The smart wallet, an extension of the Coinbase Wallet SDK, enables developers to instantly create wallets within decentralized applications using passkeys. This eliminates the need for complex procedures like seed phrases, streamlining the user experience. Built on Coinbase’s layer-2 networkNetwork The set of computers connected to each other, called nodes, on which the blockchain of a specific cryptocurrency is based. Base and currently in testnetTestnet Blockchain network used to test new applications and features in a secure environment., the smart wallet utilizes account abstraction, a popular blockchain technology, to offer users recovery options in case of key loss. Additionally, Coinbase plans to provide credits for gas fees through their Account Abstraction Kit.
Base’s team aims to make smart wallets the defaultDefault The inability to repay debts that causes bankruptcy. option by 2024, envisioning them as a solution to the security and usability challenges hindering on-chain adoption. They believe that smart wallets will attract more users to the blockchain and enable developers to offer simplified onboarding and enhanced experiences.
The embedded wallets, powered by “wallet as a service” (WaaS), allow companies to customize blockchain wallets for their customers. This feature enables developers to create white-labeled embedded wallets that abstract away crypto complexities in favor of familiar email and social login flows.
Coinbase emphasizes the importance of evolving wallets to drive the next generation of on-chain experiences and facilitate the transition of billions of users onto the blockchain. These wallet innovations represent significant steps towards achieving this goal and making crypto more accessible to all users. (Source: Coindesk)