Coinbase has launched its highly anticipated smart wallet, designed to transform on-chain activities by simplifying the onboarding process and eliminating recovery phrases.
The launch is part of Coinbase’s strategy to streamline user interaction with cryptocurrencies, targeting to engage 1 billion users on-chain. This initiative follows a series of advancements in the cryptocurrency space focusing on enhancing speed, security, and interoperability.
Gasless Transactions and Easier DeFi Access
The new smart wallet by Coinbase promises a “gasless” on-chain experience, reducing transaction costs through multi-chain integrations. This is expected to make digital transactions not only less expensive but also faster and easier, addressing previous barriers such as slow processing times and high network fees.
The company also introduced a companion web app, which includes a suite of tools for asset and identity management, allowing users to buy, send, swap, and manage non-fungible tokens (NFTs) and view their transaction history.
In tandem with the rollout of its smart wallet, Coinbase is also supporting its layer 2 network, Base, by offering gas credits to developers. These credits are intended to help developers cover the transaction costs for their application’s users, fostering a more user-friendly environment for on-chain activities.
Moonwell’s spokesperson, Youngblood, highlighted that developers could receive up to $15,000 worth of sponsored gas by integrating a “Create Wallet” button in their apps, a move that significantly lowers the entry barrier for new users.
Secure and Simplified Authentication with Passkeys
Moreover, the introduction of passkeys marks a significant advancement in user security. Developed by tech giants such as Apple, Google, and Microsoft, in collaboration with the FIDO Alliance, passkeys ensure that user authentication is both secure and straightforward.
These keys are generated on the user’s device and remain unshared; the public key is stored securely on Coinbase servers, while the private key is securely stored on the user’s device, protected by native authentication methods like biometrics or PIN.
The smart wallet also supports simplified interactions with decentralized protocols, allowing users to engage with digital assets such as NFTs with minimal clicks, removing the hassle typically associated with secure phrase management.
Coinbase’s initiative mirrors a broader trend in technology adoption, reminiscent of the significant shift seen with the introduction of smartphones. Youngblood compared the transformative potential of the smart wallet to that of the iPhone, suggesting it could bridge the gap between niche DeFi applications and mainstream financial operations, making advanced crypto financial tools accessible to a broader audience.
Coinbase’s official website. Eyes on The Future: Base Network Sees Growth
The launch of the smart wallet coincides with notable growth in user engagement on Base, Coinbase’s layer 2 blockchain network. Despite being operational for less than a year, Base has attracted over 10 million users, with daily active users averaging nearly 321,000. Although these figures represent just a fraction of Coinbase’s total user base of 110 million, they indicate a robust and growing interest in more accessible and efficient blockchain technologies.
Coinbase’s smart wallet supports various blockchain networks, including Base, Arbitrum, and Avalanche. While Ethereum’s base layer is also compatible, it is not the preferred choice due to the higher costs associated with gas fees.
The company’s effort to reduce these fees is evident in its collaboration with partners like Moonwell, the fourth largest protocol on Base. As a day-one launch partner, Moonwell allows users with Coinbase’s smart wallets to interact on its platform without incurring gas fees. Moonwell has a total value locked of almost $95 million, highlighting the significant impact of this partnership.
Looking ahead, Coinbase plans to develop migration tools within the Coinbase Wallet app to facilitate existing users’ transition to smart wallets. This move is expected to enhance user experience by leveraging new technological advancements, ensuring that Coinbase remains at the forefront of the digital asset exchange sector. The supported networks for the smart wallet include Base, Arbitrum, and Avalanche, with Ethereum’s base layer also supported, albeit not preferred due to higher gas costs.
Coinbase’s Smart Wallet Is Not Fully Avaiable to the Public Yet
Coinbase is currently offering its Smart Wallet on the testnet, with plans to make it available on the mainnet within this quarter. As the wallet has not been launched to the general public yet, early preparation is recommended to enable immediate use once it is available.
To get started, potential users are advised to create a Coinbase account. They can choose between two types of accounts depending on their needs. The “Individual” account is tailored for those looking to trade, send, and receive cryptocurrencies, in addition to receiving price alerts and other related services. Meanwhile, the “Business” account is designed for businesses and high-net-worth individuals who require services such as crypto custody, acceptance, and trading.
The registration process involves visiting Coinbase, which is recognized as the world’s most trusted crypto exchange. Users can complete their registration in less than a minute. It is essential to provide personal information exactly as it appears on one’s government-issued ID, including first and last names. Additionally, an email address must be provided, and all fields marked with an asterisk (*) are mandatory.
Account security is enhanced by registering a cellphone number for the account and setting up two-step authentication. This extra layer of security ensures that the user’s investments and transactions are protected.
Lastly, to remain informed about the full launch of the wallet and other relevant updates, users can subscribe to Coinfomania’s newsletter. This newsletter, which reaches over 10,000 subscribers, offers weekly, data-driven insights into the crypto market and regulations, providing valuable information in an eight-minute read.
By following these steps, users will be well-prepared to take full advantage of their Smart Wallet as soon as it becomes publicly available.
Developers Can Join Earlier
Developers interested in the Coinbase Smart Wallet can begin the sign-up process by completing a specific form. This registration not only ensures their participation in the upcoming Smart Wallet open house but also enrolls them to receive notifications regarding the availability of the Smart Wallet.
The form solicits various pieces of information essential for keeping participants informed about significant announcements. Developers are required to provide at least one form of contact information. Additionally, the form requests the name and URL of their project along with a brief description to better understand the scope and purpose of the project. Developers must also list the networks their decentralized application (dapp) supports and indicate whether they have already integrated the Coinbase Wallet SDK.
By providing these details, developers can ensure they remain well-informed about developments related to the Coinbase Smart Wallet and other related announcements.
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