Coinbase is currently in the process of developing two new wallet solutions that are focused on integrating and transferring balances across Ethereum Virtual Machine (EVM) applications. These solutions are specifically aimed at helping developers onboard to Coinbase’s layer-2 blockchain, Base.
One of the new features being developed is a smart wallet that allows users to carry their balances with them across various EVM-compatible applications that are integrated with the Coinbase Wallet SDK. The second feature is an embedded wallet that enables developers to incorporate noncustodial white-labeled wallets into their own applications.
Coinbase has stated that both of these features have been designed to address the pain points that developers face when building Web3 products, with a strong focus on improving the user experience.
Yuga Cohler, the senior engineering manager at Coinbase Embedded Wallets, explained that the company has been continuously working on improving its product experience based on customer feedback. The development of the Embedded Wallets is a result of this ongoing effort.
By expanding its wallet-as-a-service product line, Coinbase is offering developers the ability to integrate digital wallets into their applications without having to develop the core technology from scratch. This is particularly beneficial for companies that are looking to incorporate digital assets into their products and services.
Wallet-as-a-service is a popular offering in the cryptocurrency space, with BitGo also providing a similar service that includes both custodial and noncustodial wallets for enterprises.
Both Coinbase and BitGo’s solutions utilize multiparty computation (MPC) technology, which allows multiple participants to compute a result based on their private data without revealing it to each other or to any external party. Cohler explained that this technology does not rely on smart contracts and that the cryptography of MPC occurs off-chain.
In a recent move, Coinbase stopped supporting native Bitcoin (BTC) on its merchant payment platform, Coinbase Commerce. This decision was made due to difficulties in delivering recent updates to its EVM payment protocol for the cryptocurrency.
In conclusion, Coinbase’s development of these two new wallet solutions showcases its commitment to improving the user experience for developers and integrating digital assets into various applications. By expanding its wallet-as-a-service product line and utilizing MPC technology, Coinbase aims to provide efficient and secure solutions for its users.