Coinbase, the largest U.S. cryptocurrency exchange, has launched Web3 app features, including a hot wallet and browser, for limited mobile app users.
The app will allow selected users to access decentralized applications (DApps) on the Ethereum network, such as Uniswap and OpenSea.
— RishiDean.eth (@rishidean) May 16, 2022
Coinbase director of product management Rishi Dean announced on May 17 that qualified users can begin trading on non-fungible token (NFT) markets, exchanging on decentralized exchanges (DEXs) and interacting with the protocol. Decentralized Finance (DeFi) Lending or borrowing to lend money.
In addition to the mobile browser that provides access to the DApp, there is also a hot wallet that customers can use to exchange funds. Unlike decentralized hot wallet applications such as MetaMask, Coinbase’s hot wallet will have a co-custody setup. This means that the wallet’s private keys will be stored by the company and users can store it themselves.
Wallet and DApp functionality is powered by Multi-Party Computation (MPC) technology, which protects the privacy of senders and receivers while ensuring the accuracy of transactions.
Dean said shared key custody is a security feature designed to protect users from device-related issues. “This means that if you lose access to your device, your Dapp wallet keys are still safe and Coinbase can help recover with our live support,” he wrote.
Coinbase has announced that it will allow some users to access Ethereum-based dapps, such as opensea, Curve, and Compound like Uniswap and Sushiswap, directly from the Coinbase app. The “keys” are distributed between you and Coinbase, and Coinbase can help with recovery. https://t.co/T9TtScaziu
— Wu Blockchain (@WuBlockchain) May 17, 2022
Coinbase’s expanded wallet functionality holds promise for Web3 developers who may find it difficult to attract new users to showcase their work. According to Statista, the exchange has about 90 million registered users.
This is the second major product launch of the month. The exchange launched its long-awaited Coinbase NFT marketplace on May 4 with just 150 trades on its first day and just $75,000 in sales.
Coinbase’s first-quarter earnings report showed the exchange struggled during a bear market, posting its first net loss since going public last year. Since the first quarter of 2021, revenue fell 27% year over year to $1.1 billion from $1.6 billion, while monthly users fell to 92,000 from 11.4 million in the fourth quarter of 2021.
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