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.

Indrani bose
CBW - External Analyst
INDIA