Coinbase, the most popular cryptocurrency exchange in the United States, has begun rolling out Web3 app features to a subset of its app customers, including a browser and a wallet. They will be granted access to decentralized applications (Dapps) present on the ETH network. Some examples of these applications are OpenSea and Uniswap.
Mobile App To Allow NFT Tradung And Lending On DeFi Platforms
According to the announcement made by Rishi Dean, Director of Product Management for Coinbase, eligible users will soon be allowed to start trading on the NFTs market, making swaps, and lending protocols on DeFi.
In addition to the web browser that allows users to access decentralized applications, there is also a hot wallet available for clients to utilize to trade funds. In contrast to decentralized wallet programs such as MetaMask, Coinbase’s wallet will use a system known as co-custody to store users’ cryptocurrency. This indicates that the user will not be responsible for storing the private key to the wallet independently since the firm will be responsible for doing so.
The Multi-Party Computation (MPC) technology will be used to manage the wallet and the functionality of the Dapps. This technology protects the receivers and senders’ anonymity while simultaneously assuring the correctness of a transaction.
Security Option To Safeguard Wallet Key
According to Dean, a security option that was developed to safeguard consumers from issues relating to their devices is the ability to share custody of the keys. He noted that “if someone loses access to their smartphone, the security key to the Dapp wallet is very safe and Coinbase can aid with recovery via live support.”
The increased wallet capability offered by Coinbase bodes well for Web3 developers, who may have a tough time recruiting new customers to see their creations and share them. Statista estimates that around 90 million people have registered for the exchange.
This new addition is the second significant product launch to take place this month. On the 4th of May, the Coinbase NFT marketplace was finally released by the exchange, but it was met with a poor trade, with sales volume of just $75,000 resulting from only 150 transactions on the day of its first launch.
The quarterly financial report released by Coinbase reveals that the cryptocurrency exchange is experiencing difficulties due to the bear market by generating its first massive loss after going public the previous year. Since the beginning of 2021, quarterly revenue has decreased by 27 percent, falling from $1.6 billion to $1.1 billion, while the number of monthly users has reduced from 11.4 million to over 9.2 million.