The United States’ largest cryptocurrency exchange platform founded in 2012, Coinbase, announced an update that will allow its users to access Web3 application functionality, DeFi and dapps.
Coinbase will allow a limited number of its users to enter the Web3 world and operate decentralized applications while involving all decentralized financial activities through its hot wallets and browsers. The Coinbase dApp wallet and browser-as part of the Coinbase App Interface- will enable you to enter decentralized applications in the Ethereum Blockchain such as OpenSea, Uniswap, MarkerDao, and MetamaskSwap.
Coinbase is integrating Web3 functionality into its app by adding more services to its portfolio. The crypto exchange will allow users to access non-fungible Token (NFT) marketplaces and decentralized exchanges (DEX) via their trusted crypto exchange app. This would bring more traffic to the app, exposing more people to the Web3 space and the decentralized features in the crypto world.
The announcement made by Coinbase’s director of product management, Rishi Dean, on May 17 said eligible users would be able to trade on NFT marketplaces, make swaps on decentralized exchanges (DEXs) and interact with decentralized finance (DeFi) and decentralized lending protocols. He wrote in an official post, “To get started, go to the new ‘Browse’ tab in the navigation bar at the bottom of the Android mobile app screen, and set up your new dApp wallet. Once set up, you can search, discover, and use Ethereum-based dApps directly in the new dApp browser of the Coinbase app.”
Additional Features of Coinbase dApps Wallet
Unlike other decentralized wallets, Coinbase hot wallet claims to have solved the issue of users losing their wallets by losing their recovery phase. The company’s new on-chain dApp wallet will have a co-custodial setup in which the private key will be managed by the user and by the company’s team and networks. This means the private keep will be stored with the company for safekeeping and also stored personally by the users.
Rishi Dean added, “This is because this wallet is set up, which allows the ‘key’ to be split between you and Coinbase. Ultimately, if you lose access to your device, the key to your dApp wallet is still safe, and Coinbase can assist in recovery through our live support.”
Part of the wallet’s mechanics is that it will be operated with multi-party computation (MPC) technology, which ensures the anonymity of both senders and receivers in a transaction while maintaining the integrity of the transaction. It also boasts of its expanded functionality that can help onboard millions of users. This sounds very promising for Web3 developers looking for a wider community to showcase their work. According to Statista, the exchange has the capacity for over 90 million users.
Coinbase has been adding newer services to its portfolio to satisfy the users’ needs following its 44% fall in its overall trading volume in 2022. Coinbase’s Q1 earnings report shows that it is struggling during the recent red market by entering its first loss since going public. Compared to Q1 2021, its revenue dropped by 27%, from $1.6 billion to $1.1 billion, while compared with the last quarter of 2021, it dropped from 11.4 million in Q4 2021 to 9.2 million.
