America’s largest crypto exchange Coinbase Global (COIN) begin rolling out Web3 application including a hot wallet
According to a
blog post Monday America’s largest crypto exchange Coinbase Global (COIN) will
begin rolling out the new services in the U.S. on Android first which will allow
for a limited subset of its app users to access Ethereum-based decentralized
apps (dapps) directly from the Coinbase app. It has plans to expand to all
users and platforms soon.
Web3 application functionality rolled out by Coinbase includes features like a hot wallet that customers can use to exchange funds and browser for a limited set of its mobile app users. Eligible users can purchase nonfungible token NFTs on various marketplaces including OpenSea and Coinbase’s own NFT platform through this addition. It will also allow to access and trade on decentralized applications exchanges (DApps) including Uniswap and Sushiswap. It will also enable users to borrow and lend through DeFi platforms including Curve and Compound.
“Over 95% of the nearly 300 million cryptocurrency investors worldwide have not ventured beyond a centralized exchange,” Andrew Thurman of blockchain analytics firm Nansen.
the Coinbase hot wallet will have a co-custodial setup. This means the company will store the private key for the wallet. Also can be personally stored by the user. Multi-party computation (MPC) technology on which the wallet and DApp functionality are operating secures the privacy of senders and receivers while ensuring the accuracy of a transaction.
Dean stated that sharing custody of the keys is a security feature designed to protect users from device-related problems. Hence if users lose access to their device the key to their Dapp wallet is still safe. Coinbase can assist in recovery through their live support. The exchange boasts about 90 million registered users, according to Statista.
This month is the second major product rollout. On May 4 the exchange launched its long-awaited Coinbase NFT marketplace to a lackluster which is showing just $75,000 in sales volume from just 150 transactions on its first day. the exchange is struggling during the down market by posting its first net loss since going public last year which is evident from Coinbase’s Q1 earnings report. since Q1 2021 Revenue dropped 27% to $1.1 billion from $1.6 billion years on year. Monthly users fell from 11.4 million in Q4 2021 to 9.2 million.
CBW - External Analyst