Coinbase has announced the launch of a revolutionary smart wallet that aims to simplify the user experience. The new Coinbase Wallet is designed to eliminate gas fees, remove the need for recovery phrases, and streamline the onboarding process for users.
Smart wallets are a game-changer in the world of cryptocurrency, offering a seamless way for users to create a new wallet and onboard onto a blockchain without the hassle of downloading a new app or remembering a recovery phrase. Instead, the smart wallet will integrate with popular apps and utilize various authentication methods such as Face ID, Google Chrome profiles, fingerprint ID, or Yubikey to securely onboard users through a passkey stored on their devices.
This innovative smart wallet will provide users with self-custody and the ability to make payments from their Coinbase Wallet or Coinbase account. Developers will also have the option to sponsor transactions and waive gas fees through a paymaster.
A user-friendly companion web app will serve as the primary platform for managing assets, identities, buying, sending, swapping, nonfungible tokens, and viewing transaction history. Coinbase is committed to providing a seamless and intuitive experience for users throughout these transactions.
The smart wallet will initially support various networks including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora. Both users and developers can enjoy the smart wallet for free. Current users can expect to access the new wallet in the near future as Coinbase finalizes all migration tools.
Smart wallet technology has been gaining traction in the industry, with pioneers like Loopring and Argent leading the way back in 2020. Ethereum developer Vitalik Buterin embraced the concept in 2021, emphasizing the security benefits of features like “social recovery” that eliminate the need for recovery phrases.
The breakthrough technology for smart wallets on Ethereum, known as “account abstraction,” was introduced with the ERC-4337 standard in March 2023. Buterin highlighted the advantages of smart wallets once again in a blog post in June 2023.
Coinbase has been at the forefront of offering smart wallets to developers since March. The future of cryptocurrency storage and transactions is evolving with the introduction of smart wallets, providing users with a more convenient and secure way to manage their digital assets.