Recently, Coinbase introduced a new service that it claims will simplify digital wallets in order to make Web3 technology more approachable for both businesses and individuals.

According to Coinbase, the process of creating a wallet should be as simple as making a username and password. This eliminates the need for the technical aspects of most independent digital wallets now available.

This development comes after Coinbase revealed plans to construct its own Ethereum layer-2 network dubbed Base. The company has high hopes that this platform will become the go-to for developers building and hosting decentralized applications.

The company gave a hint that bigger companies would soon be recognized as Coinbase partners. On the most recent earnings call for the cryptocurrency exchange, CEO Brian Armstrong highlighted the growing acceptance of Web3 technology among companies that aren't native to crypto, stating that the firm might leverage that trend.

Wallet as a Service is shorthand for a suite of programming libraries that incorporates digital wallets into applications.

About Coinbase

In 2017, Coinbase published its self-custody wallet as a mobile app, a full year after MetaMask introduced its widely used software wallet. Robinhood started releasing its Polygon-based iOS wallet to select users last month. A digital wallet's private key is a string of characters that the owner is responsible for protecting and using to approve transactions, much like a bank account's PIN.

Coinbase's Wallet as a Service approves transactions in a somewhat different way. Multi-party computation is a subset of cryptography used by the exchange; it involves distributing a wallet's private key among several entities, one of which is Coinbase.

Other firms working on updating their offers on Web3 technologies

Polygon, a scaling network built on Ethereum, is a favorite among major corporations like Reddit, Meta, Nike, Disney, and Coca-Cola that are updating their offerings to incorporate Web3 technologies. Adidas and Coinbase have worked together in the past. Token storage solutions, such as digital wallets, play a crucial role in Web3's ecosystem, as they let users keep track of the NFTs or cryptocurrencies they have acquired. The usage of public and private keys is central to all of them, regardless of their level of internet connectivity.

Users must link their existing digital wallets to Web3 applications like an NFT marketplace like OpenSea or a decentralized exchange like PancakeSwap in order to make purchases.