Digital wallet installation made easy
US crypto asset (virtual currency) exchange Coinbase announced on the 8th that it will offer a service called “Wallet as a Service (WaaS)” that will allow companies to easily introduce digital wallets.
1/ Today we introduce Wallet as a Service, making it easier for any company or brand to seamlessly onboard their users to web3 🛠️⛓️
…even if they have never used cryptocurrency before. pic.twitter.com/5IKUJHpQlS
— Coinbase (@coinbase) March 8, 2023
It will make it easier for companies in various fields such as gaming, retail, and social networks to enter the Web3 business.
WaaS is an extensible, highly secure, on-chain wallet infrastructure API that businesses can customize for their use.
Businesses can offer wallets directly within their apps. As examples of adoption, Coinbase cited situations where gamers exchange NFT (non-fungible token) items in the game and their own currency, and the establishment of new loyalty programs such as token-based rewards.
Users can authenticate, open, access and restore wallets as easily as managing usernames and passwords in regular apps. Even users unfamiliar with virtual currency can easily use Web3 services.
In addition, wallets created with “WaaS” have enhanced security through advanced multi-party computing (MPC), which allows users to securely divide, encrypt, and distribute keys among multiple parties. Keep your assets safe.
This allows splitting wallet keys between end-users and coinbase. Therefore, even if the user’s device is exposed to danger such as hacking, the wallet can be kept safe. Auto-backups also ensure that wallet keys are safe in case end-users lose access to their devices.
What is Web3
The current centralized web is defined as Web2, and refers to an attempt to realize a non-centralized network using blockchain. A typical feature is the use case of decentralized networks such as blockchain, such as access to dApps using virtual currency wallets.
Virtuous cycle of “Base” and “WaaS”
Patrick McGregor, head of Coinbase’s Web3 developer platform, said WaaS is in some ways a companion to Coinbase’s announcement of Base in February.
“Base” is Coinbase’s own Ethereum (ETH) L2 network. We aim to provide a network that is safe, inexpensive, and easy for developers to use.
In order to attract billions of users to the cryptocurrency economy, Coinbase needs to make it easy for many people to use dApps (decentralized apps). He explained that it must be possible to develop applications easily.
connection: US Coinbase to launch Ethereum’s own L2 network “Base”
McGregor said “Base” will lead to increased activity on Web3, which in turn will increase the number of wallets. In addition, as the number of wallets increases, the demand for various Web3 cases will increase, creating a virtuous circle. McGregor continued:
“Base” and “WaaS” are separate products, yet a significant number of potential customers offer both Base and Wallet-as-a-Service, rather than just one or the other. I am considering a package product that contains
What is layer 2
A “second layer” blockchain. Writing all transaction histories to the main chain increases the load, slowing down processing speeds and increasing network fees. Therefore, by writing part of the transaction history in the off-chain or side-chain, it is possible to reduce the load on the main chain and improve the processing speed.