Coinbase Unveils Web3 Mobile Dapp and DeFi Wallet and Browser
America’s largest crypto exchange, Coinbase, has rolled out web3 app features including a hot wallet and browser for a limited set of mobile app users.
The application will allow certain users to access decentralized applications (Dapps) on the Ethereum (ETH) network such as Uniswap and OpenSea.
Today, we’re starting to make it significantly easier for users to access and engage on the Web3 from the @coinbase app! #NoMoreKeys #Just started #KeepBuilding https://t.co/7K3lZ6kKAs
— RishiDean.eth (@rishidean) May 16, 2022
The May 17 announcement from Coinbase Chief Product Management Officer Rishi Dean said eligible users could start trading on non-fungible token marketplaces (NFTs), trade on decentralized exchanges (DEXs) and interact with decentralized finance (DeFi) lending protocols to borrow and lend funds.
Along with the mobile browser that provides access to Dapps, there is a dynamic wallet that customers can use to redeem funds. Unlike decentralized hot wallet applications such as MetaMask, the Coinbase hot wallet will have a co-custodian setup. This means that the private key of the wallet will be stored by the company and can be stored personally by the user.
The wallet and Dapp functionality are operated with Multi-Party Computation (MPC) technology, which secures the privacy of senders and receivers while ensuring the accuracy of a transaction.
Dean said shared key custody is a security feature designed to protect users from device-related issues. He wrote: “This means that if you lose access to your device, your Dapp wallet key is still safe and Coinbase can help you recover through our live support.”
Coinbase announced that it allows certain users to access Ethereum-based dapps directly from the Coinbase app, such as opensea like Uniswap and Sushiswap, Curve and Compound. The “key” is shared 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 onboard new users to show off their work. The exchange has around 90 million registered users according to Statista.
Related: Coinbase CEO Says Funds Safe Despite Bankruptcy Protection Fears
This is the second major product rollout this month. The exchange launched its long-awaited Coinbase NFT marketplace on May 4 with a lackluster sales volume of just $75,000 for just 150 trades on the first day.
Coinbase’s first quarter earnings report shows the exchange struggling during 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 year-on-year since Q1 2021, while monthly users fell from 11.4 million in Q4 2021 to 9, 2 millions.
