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Key Takeaways
- Coinbase announced a new ‘Smart Wallet’ on February 29th, 2024, aiming to make it easier for people to get started with crypto.
- The wallet is built on a system designed for faster transactions and allows recovery even if you lose your key.
- By removing these pain points, Coinbase believes they could be a key to mass adoption of cryptocurrencies.
In late February, Coinbased announced a new wallet feature designed to be easier and more accessible for new users entering the crypto space. This feature could potentially bring in billions of users on-chain and achieve mass adoption.
In the future, we anticipate a surge in crypto exchanges offering Web3 wallets, enabling users to securely store their cryptocurrencies and other digital assets such as non-fungible tokens (NFTs). While proof of reserves remains part of their security and compliance, a standard norm in the crypto space right now still centers around the belief of “not your keys, not your coins.”
What Is Coinbase’s ‘Smart Wallet’ Feature?
The Coinbase Smart Wallet is a new feature that aims to make it easier for people to get started with cryptocurrency. Here are some key points about it:
- Easy Wallet Creation – You can create a smart wallet directly within a decentralized application (DApp) using just a passkey, eliminating the need for complex seed phrases or downloading additional apps.
- Security – Coinbase smart wallets are built on top of Coinbase’s Layer-2 network, Base, and utilize account abstraction (AA) technology. This offers recovery options in case you lose your keys, providing an extra layer of security.
- Portability – You can use your Coinbase smart wallet across any of the thousands of EVM-compatible applications already integrated with the Coinbase Wallet SDK. This means you can take your crypto holdings wherever you go within the dApp ecosystem.
Features
As far as the Coinbase Smart Wallet does, it basically allows you to access all of the different chains besides Ethereum.
Back in 2017, during the crypto boom or even during the DeFi surge in the summer of 2020, Ethereum was essentially the go-to platform where users would make their plays on. However, it was quite expensive, and the network frequently became congested, not to mention the insane gas fees you have to pay to execute a transaction.
But Coinbase’s Smart Wallet feature allows you to connect to bridge and swap to all these chains, making it super easy today. Traditionally, bridging and swapping crypto across different blockchains is a hassle. You need to move funds around, which can be slow, costly, and confusing, especially for beginners.
Furthermore, it is a self-custody wallet that allows you to keep your crypto assets off exchanges.
The Key To Future Adoption?
Coinbase’s Smart Wallet feature feels like a big step towards making crypto feel less like juggling chainsaws and more like using a fancy new app.
But here’s the thing, it’s still in its early days. In theory, this technology could be pretty successful, but we do not quite know how it will hold up in the long run.
So, it is definitely an exciting step, but whether it is the key to mass adoption? Only time will tell.
Final Thoughts
As of this writing, the Coinbase Smart Wallet is currently in the testnet phase and not yet available for public use. However, Coinbase aims to make smart wallets the default option in the future, with the goal of increasing user adoption of cryptocurrencies.
Are you going to be using the Coinbase Smart Wallet in the future? Let us know your thoughts on our official social media channels!
Via: 2Usethebitcoin.com
