Coinbase, the popular U.S. cryptocurrency exchange, has announced the launch of two innovative wallet solutions aimed at simplifying the process of onboarding new users to the world of crypto.
The new features, called smart wallet and embedded wallets, are designed to address the common challenges that users face when setting up and using crypto wallets.
The smart wallet is an extension of the Coinbase Wallet SDK, a tool that enables developers to create a wallet instantly within decentralized applications using a passkey, eliminating the need for complex processes like seed phrases. This wallet, built on Coinbase’s layer-2 network Base and currently in testnet, utilizes account abstraction technology to provide users with recovery options in case they lose their keys. Additionally, Coinbase will offer credits for gas fees through their Account Abstraction Kit.
Base team outlined their vision for smart wallets to become the default option by 2024, aiming to overcome security and usability issues that currently hinder on-chain adoption. They believe that smart wallets will help attract more users to blockchain technology and improve the overall user experience.
On the other hand, the embedded wallets will be powered by “wallet as a service” (WaaS), allowing companies to customize blockchain wallets for their customers. This feature will enable developers to create embedded wallets that simplify the complexities of crypto with familiar login flows like email and social media.
Coinbase emphasized the importance of evolving wallets to facilitate the next generation of on-chain experiences and to onboard a billion users into the crypto space. They believe that these new wallet solutions will play a crucial role in achieving this goal.
In conclusion, Coinbase’s introduction of smart and embedded wallets represents a significant step towards making cryptocurrency more accessible and user-friendly for a wider audience.