Coinbase Wallet Services & What you need to know?

The Effects It Will Have on the Uptake of Web 3 

The phrase Web3 refers to the next internet paradigm in which users may communicate with decentralized applications (dapps) that operate on blockchain networks. Transparency, security, privacy, and ownership of data and assets are just a few of the benefits that Web3 provides. Web3 does, however, also present significant difficulties, particularly for users new to the crypto sphere. The intricacy of web3 wallets, such as those offered by Coinbase, which are necessary tools for gaining access to and utilizing dapps, is one of the major challenges.

• Users using Web3 wallets must maintain a lengthy and intricate recovery phrase, sometimes called a mnemonic seed, since it is the sole means of gaining access to their cash if they misplace their device or password. This may be intimidating and dangerous for users who are unfamiliar with crypto security practices.
• Users who are accustomed to web2 apps may be confused and frustrated by the high learning curve and counterintuitive user interface of web3 wallets. Gas costs, network congestion, transaction confirmation delays, and various blockchain protocols are all issues that users must contend with. 
• Because most Web2 applications do not interface with Web3 wallets, users must transfer between apps and platforms to use Web3 features and services. As a result, users who desire a smooth and consistent experience may face friction and discomfort. 

These difficulties may hinder the development and innovation of the Web3 ecosystem and prevent consumers from making full use of its capabilities. Because of this, Coinbase, one of the top cryptocurrency platforms in the world, has unveiled a new solution that attempts to address these issues and improve the usability and accessibility of Web3. The product, Wallet as a Service (WaaS), is revolutionary for the uptake of the web.¹

How does Wallet as a Service (WaaS) function?

A set of wallet infrastructure APIs called “Wallet as a Service” (WaaS) allows businesses to build and provide their customers with completely customized on-chain or in-chain wallets. WaaS enables businesses to provide consumers with Web3 wallets inside their applications, with registration requiring only a username and password. To access Web3 capabilities, users don’t need to bother with mnemonic seeds or download additional programs.
WaaS uses Multi-Party Computation (MPC) cryptographic technology to ensure that self-custody keys are secure even if a user’s device is stolen or hacked. A ‘key’ may be divided between the end user and Coinbase thanks to MPC. The bottom line is that although Coinbase offers backup and recovery options, consumers have complete control over their money and data. WaaS also supports a number of blockchain protocols, including Polygon and Ethereum, enabling users to communicate with diverse dapps without switching networks or wallets.

What are the benefits of WaaS for businesses and users?

WaaS is a powerful tool for businesses that want to tap into the potential of Web3 and offer their customers new and exciting experiences. By using WaaS, businesses can: 

• Create new revenue streams by enabling users to buy, sell, trade, or earn digital assets and NFTs within their apps. 
• Strengthen user engagement by offering personalized shopping and on-chain loyalty programs. 
• Build stronger communities by enabling users to participate in token-gated events, DAOs, social tokens, and more. 
• Enhance user retention by providing users with a seamless and consistent wallet-onboarding experience across different platforms. 
• Leverage Coinbase’s security, ease of use, and ability to scale to billions of users. 

WaaS is also beneficial for users who want to explore Web3 without hassle or risk. By using WaaS, users can: 

• Access Web3 features and services within their favorite apps without downloading separate wallets or managing mnemonic seeds. 
• Enjoy a simple and intuitive user interface that makes Web3 easy to understand and use. 
• Protect their digital assets with industry-leading security and backup options. 
• Choose from hundreds of thousands of tokens and dapps that support various blockchain protocols. 
• Link their Coinbase account to their WaaS wallet to easily access their crypto 

How does WaaS compare with other web3 wallet solutions?

• WaaS is not the only web3 wallet solution in the market. Other popular options include MetaMask, Trust Wallet, and Coinbase Wallet. However, WaaS has MetaMask a browser extension and mobile app that allows users to connect to various web3 dapps. However, MetaMask requires users to manage their own mnemonic seeds and pay gas fees for every transaction. MetaMask also does not offer backup or recovery services, meaning users can lose their funds if they forget their seeds or devices. 
• Trust Wallet is a mobile app that supports multiple blockchain protocols and dapps. However, Trust Wallet requires users to manage their mnemonic seeds and pay gas fees for every transaction. Trust Wallet also does not offer backup or recovery services, meaning users can lose their funds if they forget their seeds or devices. 
• Coinbase Wallet is a mobile app that allows users to store and use their crypto and NFTs. However, Coinbase Wallet is a separate app from the main Coinbase platform, which means that users have to switch between apps to access different features and services. Coinbase Wallet also requires users to manage their own mnemonic seeds and pay gas fees for every transaction. Coinbase Wallet does offer backup and recovery services, but only if users link their email address or cloud account to their wallet. 
• WaaS, on the other hand, offers a seamless and secure wallet-onboarding experience that does not require users to manage mnemonic seeds or pay gas fees for every transaction. WaaS also allows users to access Web3 features and services within their favorite apps without switching between platforms. WaaS also provides backup and recovery services by default, without requiring users to link their email address or cloud account to their wallet. 

Wallet as a Service (WaaS) is a new product from Coinbase that aims to make Web3 more accessible and user-friendly for both businesses and users. ²

WaaS allows businesses to create and deploy fully customizable on-chain wallets to their end users, enabling them to offer Web3 experiences such as trading in-game items, token-based rewards, NFTs, and more. WaaS also allows users to access Web3 features and services within their favorite apps without managing mnemonic seeds or paying gas fees for every transaction. WaaS is powered by Multi-Party Computation (MPC) cryptographic technology, which enables self-custody keys to be safe and secure even if a user’s device is compromised or lost. 

WaaS could be a game-changer for Web3 adoption, as it can help bring the next hundred million customers into Web3 through a seamless wallet-onboarding experience. WaaS has some unique advantages over other web3 wallet solutions, such as MetaMask, Trust Wallet, and Coinbase Wallet.

If you are interested in learning more about WaaS or signing up for it, you can visit the official website of Coinbase or contact the WaaS team at waas@coinbase.co.

1. finance.yahoo.com: finance.yahoo.com[↩]
2. www.coinbase.com: www.coinbase.com[↩]