Coinbase Unveils New Wallet as a Service on Ethereum

UTC by staff writer · 3 min read
Coinbase Unveils New Wallet as a Service on Ethereum
Photo: Depositphotos

WaaS (Wallet as a Service) reportedly employs cutting-edge multi-party computing (MPC) technology to safeguard the private keys of its users.

Coinbase has announced that it released and launched a new Web3 wallet solution dubbed “Wallet as a Service” (WaaS) on the Ethereum mainnet. The new service, a version of the crypto firm’s cloud product, went live on May 23 and utilizes a multi-party computation (MPC), according to a Twitter announcement from a software developer at the company.

The Coinbase engineer also noted that the new service is a direct-to-end-user product. WaaS (Wallet as a Service) reportedly employs cutting-edge multi-party computing (MPC) technology to safeguard the private keys of its users. It is equipped with MPC for both key generation and message signing, which ensures the maximum security properties of these decentralized algorithms.

According to the post, customers using the MPC wallet solution can create, access, and recover their wallets with just a username and password. Coinbase initially launched this offering in March, selling it as a means for companies to provide their customers with “fully customizable on-chain wallets”.

Coinbase representatives at that time, emphasized that the use of Multi-Party Computation (MPC) cryptographic technology empowers end users to engage with Web3 without the need to handle a complex 24-word recovery phrase.

MPC solutions are commonly known to divide the private key associated with a wallet into multiple shards. These shards can then be distributed among multiple owners, ensuring the secure storage of their digital assets.

The MPCTransactionService, another unique feature of WaaS, according to the Twitter announcement, “implements a complex state machine to fulfill MPC-signed transactions from construction to confirmation. It handles re-orgs, replacements, retries, and more”.

WaaS also boasts of the option of Web3 interactions via APIs and SDKs, as well as support for ERC-721 and ERC-1155 for NFT holders, as these users can mint PFP NFT, distribute fan loyalty points, or build an in-game item with only a few REST API calls.

A variety of digital assets can be purchased with Coinbase’s Pay SDK. According to the exchange, a second Coinbase API makes it easier for companies to incorporate cryptocurrency-based payments, including DeFi solutions.

Coinbase’s recent product unveilings look to be giving the company a boost amidst its ongoing legal troubles with the US Securities and Exchange Commission (SEC). ENS Domains has reportedly integrated the crypto firm’s wallet-as-a-service product.

In May, the Ethereum-based naming service joined forces with Moonpay, with the collaboration allowing users to purchase .eth domain names with fiat.

Speaking on the recent developments around ENS and its integration with Waas, a representative for Coinbase told reporters that there is “more to come”.

Earlier this month, Coinbase disclosed plans to expand in Singapore in addition to its prior plans to create a derivatives exchange in Bermuda. The cryptocurrency exchange plans to increase its international presence in 35 countries and has expanded its Coinbase One subscription service to the UK, Germany, and Ireland.

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