By simplifying the user experience of blockchain, more than 1 billion users will be brought into the blockchain world.
Coinbase first announced the concept of its smart wallet at ETHDenver in February this year and provided a beta version for developers.
So, what exactly do Coinbase Smart Wallets look like from a user’s perspective? What are their capabilities? Are they secure?
What is Coinbase Smart Wallet
As a new upgraded version of the self-custodial wallet, Coinbase said that its Smart Wallet solves several major pain points in the current cryptocurrency experience, including a complicated onboarding process, high network fees, and cumbersome steps such as the need for recovery phrases.
Coinbase Smart Wallet provides a simple, gas-free on-chain experience, supports multiple chains and integrates with major applications, making it easy for users to use blockchain technology as simple as logging into their favorite website.
In addition, by integrating with next-generation Layer 2 networks such as Base, Coinbase Smart Wallet further improves the efficiency and cost-effectiveness of on-chain transactions, making on-chain transactions simple, fast and cheap.
Coinbase said that for existing wallet users, the official will build migration tools into the wallet application and support smart wallets in the coming months.
Coinbase Smart Wallet First Experience
As Siddharth Coelho-Prabhu, senior product director at Coinbase, said, “Smart Wallet is an important breakthrough in our goal of bringing over a billion users to blockchain.”
The convenience and smoothness of using Coinbase Smart Wallet reflects this point.
When a new user enters the login interface, the interface for creating a smart wallet will appear.
After clicking on the creation interface, you will see the wallet creation page. Users can select Passkey (Icloud Face ID, Google Chrome profile) to successfully create a wallet.
Compared to most wallets that require independent creation of passwords and accounts, the creation of Coinbase Smart Wallet is more inclined to the "fool-proof operation" of Web2, which is more convenient and simple.
In addition, mnemonics can be directly backed up in Icould, eliminating the need for users to perform backups.
After entering the Coinbase Smart Wallet, it is the same as the previous wallet function, and users can add relevant encrypted assets at will.
At present, the Coinbase wallet page has been automatically updated to the smart wallet page, and the "go onchain" test task has been launched on the "Learn" page. The tasks are divided into "Swap", "Set focus currency", "Mint NFT", "Bridge", "Staking" and "Earn token rewards through tasks". Users can experience the functional updates of the smart wallet by completing tasks. In addition, completing any three of the test tasks will receive the "Evolving Explorers" NFT reward.
For old users, the changes in Mint NFT are more intuitive than registration.
Users can mint the three free mint NFTs provided by Coinbase directly without paying gas fees. The network cost will be directly displayed as "0". It only takes a few minutes for the NFT to be successfully minted and appear in the wallet. For NFT players, this is truly free in nature. There is no need to worry about the project side issuing some so-called "free mint assassins" for gas fees. Some NFT players compare the smoothness of their operation to "ordering takeout". In the Coinbase smart wallet, minting NFT is as smooth and convenient as ordering takeout.
While maintaining convenience, Coinbase has not sacrificed security.
When it comes to interactions on the asset chain such as "Swap", "Set Focused Currency", "Bridge", and "Pledge", Coinbase Smart Wallet, like traditional wallets, requires transaction confirmation, which also ensures the security of the entire transaction.
In the Coinbase smart wallet system, the Web3 wallet is like the "Alipay" in Web2. On-chain interactions no longer require complicated signatures, private keys, or facial recognition to log in, and operations can be completed with just a click.
Lower the threshold for users to enter the web3 world
Addressing barriers to entry
“Until now, on-chain operations (for traditional wallets) have been slow, expensive, and difficult, requiring the installation of separate wallet applications and the use of first-generation blockchains,” Coelho-Prabhu wrote in the blog post.
Unlike the recovery phrases, apps, and extensions used on previous generation traditional wallets to access DeFi applications and services, the Smart Wallet uses industry-standard Passkeys and has been equipped with a companion web portal connected to the Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, and Zora networks since its launch.
Users only need any universal passkeys, including Face ID, Google Chrome profile, Yubikey, fingerprint unlocking, to create a free, secure self-hosted wallet in seconds, without downloading apps or extensions, and without having to deal with recovery phrases.
Easy on-chain payment
“Coinbase Smart Wallet allows users to create a free, secure, self-hosted wallet in seconds. They simplify the sign-up process, reduce the number of transactions that require signatures, and allow you to use your Coinbase balance seamlessly,” said Coelho-Prabhu.
Coinbase attempts to solve the fragmentation problem that arises when users have to manage balances in multiple wallets to interact with cryptocurrencies in traditional wallets.
With support for self-custodial wallet balances or Coinbase account balance payments in Coinbase Smart Wallet, users don’t have to worry about encountering “insufficient balance” errors when interacting.
Portability across applications
In the Coinbase Smart Wallet, users can seamlessly use Coinbase balances without excessive number of signed transactions, bringing wallets, identities, and balances to thousands of on-chain applications. And it can be used in hundreds of EVM-compatible applications that have been integrated with the Coinbase Wallet SDK.
Gas-free transactions
Developers can choose to provide a gas-free experience and sponsor transactions for customers through payment proxy integration. In other words, developers or other parties can bear the gas costs of users, thereby providing free products or services. This is undoubtedly a great help for some free mint projects. Users do not need to pay the gas fees generated by the mint operation, truly realizing free mint on the chain.