Coinbase is expanding rapidly its offerings for this month in order to allow select users to now use DeFi as well as other DApps available on Ethereum via the Coinbase application.
America’s biggest crypto exchange Coinbase has launched Web3 application features, including hot wallets and a browser for a small number of mobile application users.
The app will permit selected customers access to connect to decentralized apps (DApps) through the Ethereum network, such as Uniswap as well as OpenSea.
Today, we’re launching a plan to make it much simpler for users to access and participate in web3 directly through our @coinbase application! #NoMoreKeys #JustGettingStarted #KeepBuilding https://t.co/7K3lZ6kKAs
— RishiDean.eth (@rishidean) May 16 2022
The announcement on May 17 by Coinbase’s director of products management Rishi Dean stated that users who meet the requirements will be able to start trade on non-fungible token (NFT) marketplaces as well as swapping using DEXs ( DEXs) and working with Decentralized Finance ( DeFi) lending protocols to lend and borrow money.
Alongside the mobile browser that gives access to DApps and an open hot wallet that users can use to transfer funds. Contrary to hot wallets that are decentralized like MetaMask and MetaMask, Coinbase hot wallet Coinbase hot wallet comes with co-custodial settings. It means the personal key to your wallet is held by the company, and will be kept by the user.
Its wallet as well as DApp functions are powered by the multi-party computing (MPC) technology that ensures the privacy of both senders and recipients while ensuring reliability of transactions.
Dean explained the sharing of custody over keys is a feature intended to shield users from problems related to devices. Dean wrote “This means if you lose access to your device, the key to your Dapp wallet is still safe and Coinbase can assist in recovery through our live support.”
Coinbase has announced it will permit certain users to use Ethereum-based dapps directly through the Coinbase app, including openSEA like Uniswap as well as Sushiswap, Curve and Compound. The “key” is split between Coinbase and you. Coinbase and Coinbase will assist you in recovering. https://t.co/T9TtScaziu
— Wu Blockchain (@WuBlockchain) May 17 2022
The expanded functionality of Coinbase’s wallet is positive for Web3 developers, who may be unable to get new users and showcase their work. Coinbase boasts around 90% of registered customers in accordance the Statista.
In related news: Coinbase CEO says funds are secure amid fears of bankruptcy protection
It’s the 2nd major launch of the new product in the month of May. The exchange officially launched its long-anticipated market place for NFT transactions on Coinbase in May, to an unimpressive showing of $75,000 of sales from only 150 transactions in its first day.
The earnings report for Q1 of Coinbase’s quarter show that the exchange has been struggling in the current market, reporting its first loss since its public debut in the year prior. Revenue fell 27 percent to $1.1 billion, down from $1.6 billion in Q1 2021. Monthly users dropped by 11.4 million in the fourth quarter of 2021, down to 9.2 million.