By Karen, Foresight News
Yesterday, Coinbase officially launched the Smart Wallet, which simplifies login, eliminates the hassle of restoring mnemonics, and supports spending with Coinbase exchange balances, bringing users an unprecedented on-chain experience. Coupled with multi-chain support and integration with major applications, it is expected to attract the attention of hundreds of millions of users of Coinbase Exchange and lead them into a new on-chain world.
For existing Coinbase Wallet users, Coinbase is already planning to fully support smart wallets through a built-in migration tool in the Coinbase Wallet application in the coming months. So what are the highlights of Coinbase smart contracts? How to connect with the Coinbase exchange?
What are the highlights of Coinbase Smart Wallet?
Simplified login and key protection
The Coinbase Smart Wallet creation process is extremely simple and takes only seconds to complete. There is no need to install additional apps or browser plug-ins, and there is no need to worry about cumbersome recovery phrases.
There are two ways to create a passkey: one is to use a mobile phone, tablet or USB security key. The mobile phone and tablet use Face ID to log in and the passkey will be stored in the iCloud keychain; the other is to use a Chrome profile. Coinbase said that "Smart Wallet Keys are backed up by key providers such as Apple, Chrome or 1Password, or hardware such as YubiKeys. Coinbase will never hold the key and will never have access to user funds."
Of course, there may be accidents where the hardware key is accidentally lost. To deal with unexpected situations, users are advised to make additional backups of the key, such as using a password manager or making physical backups.
Integration with Coinbase Exchange
Coinbase Smart Wallet also supports payments using self-hosted wallet balances or Coinbase account balances. Payments using Coinbase account balances must be implemented through the Magic Spend smart contract.
This means that even if there is not enough ETH in the smart wallet to pay the Gas fee, the on-chain payment can be easily completed through the corresponding Coinbase exchange balance, which greatly improves the convenience and conversion rate of transactions.
The Magic Spend smart contract allows on-chain accounts to make valid withdrawal requests and receive funds. It can be used in three different ways: paying only gas fees, transferring funds only during execution, and paying gas and transferring funds during execution.
Gas-free experience
Coinbase Smart Wallet provides a transaction experience without gas fees. Developers can choose to provide this service to their customers through Paymaster integration or sponsor transactions to provide users with a smoother transaction experience. Currently, Base officially sponsors the gas fees for interacting with Coinbase Smart Wallet.
Easy integration for developers
Coinbase said that it only takes a few lines of code for developers to integrate Coinbase Smart Wallet, and mainstream wallet libraries and aggregators including WAGMI, Web3Modal, Privy, Dynamic and Rainbowkit have integrated Coinbase Smart Wallet. Any DApp that upgrades the SDK to the latest version will automatically support Coinbase Smart Wallet. Coinbase said that Coinbase SDK has been integrated by thousands of DApps.
Currently, projects that are ready for integration with Coinbase Smart Wallet include DeFi applications such as Aerodrome, Avantis, DODO, Infusion, JOJO Exchange, Kwenta, Lucidity, Magnify Labs, Matcha, Moonwell, PancakeSwap, Seamless Protocol, Stargate, Synapse Labs, Trader Joe, etc., community, game and social projects such as AnimeCoin, Based Basketball Association, Cat Town, Fren Pet, Layer3, Zora, Slice, speedtracer, tokenproof, etc., and aggregation layers and libraries such as Blocknative, Dynamic, Family, Privy, Rainbow, thirdweb, WalletConnect, etc. It is worth noting that the integration list does not include friend.tech. Previously, the co-founder of friend.tech hinted that the team’s relationship with Base was unstable and intended to migrate out of the agreement.
After creating a smart wallet, you can use the Coinbase Wallet page (https://wallet.coinbase.com/) to manage assets, including asset and identity management, purchase, send, exchange, NFT and transaction history. Currently, Coinbase Smart Wallet supports 8 networks: Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora, and will support more chains in the future.
It is worth mentioning that Base recently launched the Onchain Summer event, offering a total of 600 ETH rewards. By integrating the smart wallet, developers can showcase their projects during the Onchain Summer. In addition, developers who successfully integrate the smart wallet and other Coinbase functions will also have the opportunity to receive an additional 40 ETH reward sharing pool.
Coinbase Smart Wallet is expected to attract the huge user base of Coinbase Exchange and open the door to the infinite possibilities of the on-chain world for them. At the same time, Coinbase's Base Chain will also gain more attention.
