Coinbase has introduced a new self-custodial wallet, termed Smart Wallets, designed to streamline the user experience and address key challenges in the cryptocurrency space. This development aims to facilitate the onboarding process for over a billion users by tackling issues such as complex setup, network fees, and recovery phrases.
Streamlined Onboarding and Usage
Coinbase’s Smart Wallets are engineered to offer a gasless, multi-chain experience, significantly simplifying the process of going onchain. This new wallet technology reduces the steps required for users to start interacting with blockchain applications, making the transition as easy as logging into a website. The integration with advanced Layer 2 networks like Base enhances this process, making it quicker and more cost-effective.
For current users of Coinbase Wallet, tools and support will soon be available to migrate to the new Smart Wallets seamlessly within the Coinbase Wallet app.
Key Features and Benefits
Smart Wallets bring several enhancements designed to improve the user experience:
Effortless Onboarding: Users can set up a wallet instantly using biometric authentication or Google Chrome profile, or Yubikey, bypassing the traditional need for recovery phrases.
Easy Payments: Users can transact using either their self-custodial wallet balance or their Coinbase account balances, eliminating issues with insufficient funds for gas fees.
Cross-App Portability: Wallets, identities, and balances can be used across numerous onchain applications.
Gasless Transactions: Developers can offer transactions without gas fees through paymaster integrations.
A companion web app will support features like asset and identity management, transactions, and interaction with NFTs.
Developer Integration
Coinbase encourages developers to integrate Smart Wallets into their applications, highlighting the ease of doing so and the benefits it brings. The wallets are accessible directly from any browser, removing the need for additional app installations. Features like gas sponsorship, batch transactions, and spending directly from Coinbase accounts are designed to improve user retention and onboarding efficiency.
To incentivize integration, Coinbase offers several programs:
Base Gas Credits: Up to $15k in gas credits to sponsor user transactions.
ETH Rewards: Opportunities to win ETH through the Base Buildathon.
Onchain Summer Participation: Potential visibility and user base expansion during Onchain Summer.
Future Prospects
Coinbase’s launch of Smart Wallets marks a significant advancement in the realm of self-custody and onchain transactions. By addressing the primary pain points of traditional wallets, Coinbase aims to drive broader adoption and enhance the user experience in the crypto space. This initiative aligns with their vision of making blockchain technology accessible to a wider audience.
Featured Image via Coinbase