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The largest U.S. cryptocurrency exchange Coinbase has implemented a Web3 app function that includes a Hot Wallet and browser for a limited group of mobile app users.
The app will allow users to choose to access decentralized applications (Dapps) on the Ethereum (ETH) network such as Uniswap and OpenSea.
Today, we're starting to make it dramatically easier for users to access & engage in web3 right from the @coinbase app! 🔥 #NoMoreKeys #JustGettingStarted #KeepBuilding https://t.co/7K3lZ6kKAs
— RishiDean.eth (@rishidean) May 16, 2022
Coinbase's May 17 announcement by Chief Product Management Officer Rishi Dean said eligible users will be able to start trading on NFT markets, make swaps on decentralized exchanges (DEX), and interact with decentralized financial lending (DeFi) protocols for loans and loans.
Along with the mobile browser that provides access to Dapps, there is a hot wallet that customers can use to exchange money. Unlike decentralized hot wallet apps like MetaMask, the Coinbase hot wallet will have a co-monitoring setup. This means that the Private Key for the wallet will be stored by the company and can be stored by the user.
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The wallet and Dapp functions are operated with multi-party computing (MPC) technology, which ensures the privacy of senders and recipients while ensuring the accuracy of the transaction.
Dean claims that sharing the custody rights of keys is a security feature designed to protect users from device-related issues. "This means that if you lose access to your device, the key to your Dapp wallet remains secure, and Coinbase can support recovery through our direct support."
Coinbase announced to allow some users to access Ethereum-based dapps directly from the Coinbase app, like opensea like Uniswap and Sushiswap, Curve and Compound. The ‘key’ is splited between you and Coinbase and Coinbase can assist in recovery. https://t.co/T9TtScaziu
— Wu Blockchain (@WuBlockchain) May 17, 2022
Coinbase's expanded wallet functionality is promising for Web3 developers, who may find it difficult to introduce new users to showcase their work. The exchange boasts about 90 million registered users according to Statista.
This is the second major product launch launched this month. The exchange launched its long-awaited Coinbase NFT market on May 4 with a lackluster trading volume of just $75,000 from just 150 trades on the first day.
Coinbase's first-quarter earnings report shows that the exchange is struggling in the course of the market downturn by posting its first net loss since going public last year. Revenue fell 27% to $1.1 billion from $1.6 billion y-o-y from the same period last year from Q1 2021, while monthly users fell from $11.4 million in the fourth quarter of 2021, to 9.2 million.
