Coinbase, a known exchange platform for digital currencies, has now expanded the offering to its customers by rolling out Wallet as a Service, also known as WaaS. The service will empower the companies to onboard thousands of users to their platform by enabling them to have their first Wallet. Any company that integrates the Wallet Service of Coinbase will have the ability to deploy a customizable onchain wallet directly on its platform for the customers.
The move is critical, considering that the Web3 sphere is where the world seems to be headed. A wallet service like the one offered by Coinbase will only come in handy at all moments for industries like retail, commerce, and entertainment, to mention a few. The utility is estimated to widen in the days to come, thereby incorporating more industries. For instance, the company Moonray builds and designs games for their users in such a way that they can interact with NFT and digital assets.
Wallet as a Service is likely to succeed in the market for the top-notch security and scalability it carries with it. WaaS is also proving to be a powerful tool for the gaming industry; Developers understand that reward distribution needs to be simplified, and the wallet infrastructure API of Coinbase is better in comparison to anyone else’s in the industry.
Users of a platform will no longer have to remember the long phase, courtesy of the Multi-Party Computation mechanism that backs the wallet service.
MPC, short for Multi-Party Computation, basically splits the key into two parts which are shared by the user and Coinbase. In a situation where the user’s device, or the storage facility, is compromised, Coinbase kicks in to ensure that the customer still has access to their key. MPC is backed by automatic and advanced backup technology to make the wallet service absolutely safe.
According to a Coinbase review, its crypto wallet service is among the best already. Rolling out the service to every other company strengthens its position in the industry while assisting the Web3 sphere in growing by onboarding a large number of customers. Companies including, but not limited to, Moonray, Floor, and Tokenproof, have started building with the wallet service of Coinbase.
Fonz from Tokenproof shared that when users come to the platform, then they are thoroughly assisted with the registration process and the creation of their first wallets. The Founder of Tokenproof has called this a huge step, adding that the space will now become more approachable and accessible, making it a highly trusted partner.
Benefits that incline the industry towards Coinbase’s Wallet as a Service are a seamless experience, security, ownership of the key, native integration, and scalability.
Users only need a password and username to restore their wallets. MPC guarantees security since the divided keys are encrypted and distributed among multiple parties, making it a significant improvement over other wallets.
Users retain ownership of their keys, and companies gain the ability to construct a native wallet for their applications. Scalability is essential for ventures that are aiming to onboard more users after the initial onboarding process.