Coinbase launches Smart Wallet targeting 1 billion users

Coinbase has launched its highly anticipated smart wallet, designed to transform on-chain businesses by simplifying the onboarding process and eliminating recovery phrases.

The launch is part of Coinbase’s strategy to simplify user interaction with cryptocurrencies, aiming to engage 1 billion users on the chain. This initiative follows a series of advances in cryptocurrency space focusing on improving speed, security and interoperability.

Gas-free transactions and easier DeFi access

The new smart wallet from Coinbase promises a “gas-free” on-chain experience, reducing transaction costs through multi-chain integrations. This is expected to make digital transactions not only cheaper but also faster and easier, overcoming previous barriers such as slow processing times and high network fees.

The company also introduced a companion web app, which includes a suite of asset and identity management tools, which allows users to purchase, send, exchange and manage non-fungible tokens (NFTs) and view transaction history .

Along with the launch of its smart wallet, Coinbase is also supporting its layer 2 network, Base, by offering gas credits to developers. These credits are intended to help developers cover transaction costs for users of their application, promoting a more user-friendly environment for on-chain activities.

Moonwell spokesperson Youngblood pointed out that developers could receive up to $15,000 in sponsored gas by integrating a “Create Wallet” button into their apps, a move that significantly lowers the barrier of entry for new users.

Secure and simplified authentication with passkey

Furthermore, the introduction of passkeys marks a significant advancement in user security. Developed by tech giants like Apple, Google and Microsoft, in collaboration with the FIDO Alliance, passkeys ensure user authentication is secure and easy.

These keys are generated on the user’s device and remain unshared; the public key is securely stored on Coinbase servers, while the private key is securely stored on the user’s device, protected by native authentication methods such as biometrics or PIN.

The smart wallet also supports simplified interactions with decentralized protocols, allowing users to interact digital resources like NFTs with minimal clicks, eliminating the hassles typically associated with managing secure phrases.

Coinbase’s initiative reflects a broader trend in technology adoption, reminiscent of the significant shift seen with the introduction of smartphones. Youngblood compared the transformative potential of the smart wallet to that of the iPhone, suggesting it could bridge the gap between the niche DeFi applications and traditional financial operations, making advanced cryptographic financial instruments accessible to a wider audience.

The official website of Coinbase.

Eyes on the future: the basic network sees growth

The launch of the Coinbase smart wallet coincides with notable growth in user engagement on Base, Coinbase’s tier 2 blockchain network. Despite being in operation for less than a year, Base has attracted over 10 million users, with an average daily active user of nearly 321,000. While these figures represent only a fraction of Coinbase’s total user base of 110 million, they indicate strong and growing interest in more accessible and efficient blockchain technologies.

Coinbase’s smart wallet supports various blockchain networks, including Base, Arbitrum, and Avalanche. While The basis of Ethereum Layer is also compatible, but is not the preferred choice due to the higher costs associated with gas rates.

The company’s effort to reduce these fees is evident in its collaboration with partners like Moonwell, the fourth largest protocol on Base. As a day one launch partner, Moonwell allows users with Coinbase smart wallets to interact on its platform without incurring gas fees. Moonwell has a total value locked of nearly $95 million, highlighting the significant impact of this partnership.

Looking ahead, Coinbase plans to develop migration tools within the Coinbase Wallet app to ease the transition of existing users to smart wallets. This move is expected to improve user experience by leveraging new technological advancements, ensuring that Coinbase remains at the forefront of the digital asset trading industry. Supported networks for the smart wallet include Base, Arbitrum, and Avalanche, with the Ethereum base layer also supported, although not preferred due to higher gas costs.

Coinbase’s Smart Wallet is not yet fully available to the public

Coinbase currently offers its Smart Wallet on the testnet, with plans to make it available on the mainnet later this quarter. Since the wallet has not yet been launched to the general public, it is recommended to prepare it promptly to allow immediate use once available.

To get started, potential users are advised to create a Coinbase account. They can choose between two types of accounts depending on their needs. The “Individual” account is tailor-made for those who wish to trade, send and receive cryptocurrencies, as well as receive price alerts and other related services. Meanwhile, the “Business” account is designed for businesses and high-net-worth individuals who require services such as cryptocurrency custody, acceptance, and trading.

The registration process involves visiting Coinbase, recognized as the most trusted cryptocurrency exchange in the world. Users can complete registration in less than a minute. It is essential that you provide your personal information exactly as it appears on your government-issued identification, including your first and last name. Additionally, you must provide an email address and all fields marked with an asterisk

they are mandatory.

Account security is improved by registering a mobile number for the account and setting up two-step authentication. This additional layer of security ensures that your investments and transactions are protected. Finally, to stay informed about the full launch of the wallet and other relevant updates, users can subscribe to the Coinfomania newsletter. This newsletter, which reaches over 10,000 subscribers, offers weekly data-driven insights cryptocurrency market ANDcryptographic regulations

providing valuable information in an eight-minute read.

By following these steps, users will be well prepared to take full advantage of their Smart Wallet as soon as it becomes publicly available.

Developers can join first

Developers interested in the Coinbase Smart Wallet can begin the registration process by completing a specific form. This registration not only guarantees their attendance at the next Smart Wallet open house, but also enrolls them to receive notifications regarding Smart Wallet availability.

The form requests various essential information to keep participants informed of significant announcements. Developers are required to provide at least one contact information form. Additionally, the form asks for the project name and URL along with a short description to better understand the scope and purpose of the project. Developers must also list the networks supported by their decentralized application (dapp) and indicate whether they have already integrated the Coinbase wallet SDK.

By providing these details, developers can ensure they stay well informed about developments related to the Coinbase Smart Wallet and other related announcements.

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