Smart Wallet by Coinbase and Its Impact on the Crypto Ecosystem

Bittime - One of Coinbase's targets since launching this smart wallet is to make it easy for users to interact with crypto. Coinbase also set a target of 1 billion users on its blockchain network.

Transactions without Gas Fees and Easier DeFi Access

Coinbase's smart wallet promises a zero-gas fee experience on the blockchain network. That way, users can reduce transaction costs through integration with various blockchains.

With this, Coinbase hopes to make digital transactions not only cheaper, but also faster and easier, while overcoming previous obstacles such as slow processing times and high network fees.

Additionally, Coinbase also introduced a companion web application that provides various features for asset and identity management. Users can buy, send, exchange, and manage non-fungible tokens (NFTs) as well as view their transaction history.

Along with the launch of the smart wallet, Coinbase also supports its Layer-2 network, namely Base. The base was created to be able to offer gas credits to developers.

The credits aim to help developers cover transaction costs for their app users thereby creating a more user-friendly environment for blockchain activities.

Moonwell spokesperson Youngblood stressed that developers can receive up to $15,000 in sponsored gas credits by integrating a “Create Wallet” button in their apps. This means significantly lowering the barrier to entry for new users.

Secure and Simple Authentication with Passkey

In addition, the introduction of passkeys marked a significant advancement in user security. Moreover, passkey was developed by technology giants such as Apple, Google, and Microsoft, in collaboration with the FIDO Alliance so that user authentication is guaranteed to be safe and easy.

The passkey is created on the user's device and is not shared. Because, public keys are stored securely on Coinbase servers, while private keys are stored securely on user devices. Both are protected by native authentication methods such as biometrics or PIN.

Smart wallets also support simpler interactions with decentralized protocols (DeFi), allowing users to interact with digital assets such as NFTs with just a few clicks, eliminating the complexity typically associated with managing security phrases.

Youngblood compared the transformative potential of smart wallets to the iPhone, which could bridge the gap between niche DeFi applications and mainstream financial operations, making advanced crypto financial tools accessible to a wider audience.

Base Network Shows Growth

The launch of Coinbase's smart wallet coincides with significant growth in user engagement on Base, Coinbase's layer 2 blockchain network. Despite operating for less than a year, Base has attracted more than 10 million users, with average daily active users approaching 321,000.

While this figure represents only a small portion of Coinbase's total user base of 110 million, it shows the strong and growing interest in more accessible and efficient blockchain technology.

The Coinbase smart wallet supports a variety of blockchain networks, including Base, Arbitrum, and Avalanche. Although the Ethereum base layer is also compatible, it is not the preferred choice due to higher gas fees.

The company's efforts to reduce these costs are evident in its collaborations with partners such as Moonwell, Base's fourth-largest protocol.

As a day one launch partner, Moonwell allows users with Coinbase smart wallets to interact on its platform without incurring gas fees. Moonwell has total value locked of nearly $95 million, highlighting the significant impact of this partnership.

Coinbase smart wallet Migration and Availability

Coinbase plans to develop a migration tool within the Coinbase Wallet app to ease the transition of existing users to smart wallets. This move is expected to improve the user experience by leveraging new technological advances, ensuring Coinbase remains at the forefront of the digital asset exchange sector.

Currently, Coinbase's smart wallet is still in the testing phase, with plans to make it available on mainnet this quarter. For initial preparation, potential users are advised to create a Coinbase account.

There are two account types available: “Individual” for trading, sending, and receiving crypto, and “Business” for businesses and high net worth individuals who need services such as storing, receiving, and trading crypto.

The registration process is fast and easy. Users must provide accurate personal information, including first and last name and address.

Security and Updates: Coinbase smart wallet Launch Preparations

Although the sign-up process is easy, make sure to always use a strong and unique password for your Coinbase account. Also enable two-factor authentication for an additional layer of security.

To stay up to date with the full launch of the smart wallet and other updates, you can subscribe to the Coinfomania newsletter.

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Registration for Developers

Developers interested in the Coinbase smart wallet can start the registration process by filling out a special form.

This registration not only ensures their participation in the upcoming smart wallet launch event, but also registers them to receive notifications about smart wallet availability.

The registration form asks for a variety of important information to keep developers up to date. Developers must provide at least one method of contact, the name and URL of their project, and a brief description of the project.

They also need to list the networks their decentralized application (dApp) supports and whether they have integrated the Coinbase Wallet SDK.

By following these steps, developers can be sure they will stay informed about developments regarding the Coinbase smart wallet and other related announcements.

The launch of Coinbase's smart wallet marks a significant step in the effort to make crypto more accessible to a wider audience. These wallets remove complex technical barriers and high transaction fees, paving the way for wider crypto adoption.

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