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Crypto exchange Coinbase has unveiled an enhanced version of its cloud product incorporating multi-party computation (MPC). It offers users a web3 wallet solution on the Ethereum mainnet.
Coinbase announced the launch of an updated version of its cloud product. The new iteration incorporated multi-party computation (MPC) and was made available to the public on May 23.
Coinbase referred to this web3 wallet solution as Coinbase Wallet-as-a-Service (WaaS), emphasizing its direct-to-user nature. The product has been launched on the Ethereum mainnet, expanding its reach within the cryptocurrency ecosystem.
1/ 🎉 Coinbase Wallet as a Service has now launched on mainnet, bringing seamless web3 onboarding to everyone, everywhere! pic.twitter.com/s2hFIlw2IK
— Coinbase Cloud 🛡️ (@CoinbaseCloud) May 23, 2023
This offering was initially introduced by Coinbase back in March, with the exchange highlighting its potential for providing fully customizable on-chain wallets to companies and their customers.
By leveraging multi-party computation (MPC) cryptographic technology, the solution eliminates the need for end users to manage complex 24-word recovery phrases, making it more user-friendly.
A recent tweet from Coinbase stated that customers utilizing the MPC wallet solution can now create, access, and restore their wallets using a simple username and password. This streamlined process enhances convenience and accessibility for users.
4/ Wallets deployed using Wallet as a Service use advanced multi-party computation (MPC) for added security, helping keep user assets safe by securely dividing, encrypting and distributing keys among multiple parties. pic.twitter.com/Z8ikkfZDry
— Coinbase 🛡️ (@coinbase) March 8, 2023
Furthermore, the Coinbase WaaS product enables various interactions within the web3 space through APIs and SDKs. For instance, Coinbase’s Pay SDK facilitates purchasing a wide range of digital assets, while an additional Coinbase API allows businesses to integrate crypto-based payments, including decentralized finance (DeFi) solutions.
Multi-party computation (MPC) solutions, such as the one employed by Coinbase, involve splitting the private key associated with a wallet into multiple shards. This fragmentation ensures the safekeeping of digital assets by distributing the responsibility among various owners.
One notable aspect of Coinbase’s WaaS offering is that users have the ability to remove their private keys from the exchange at any time.
The ENS Domains, an Ethereum-based naming service, has already begun utilizing Coinbase’s WaaS product. In collaboration with Moonpay, ENS allows users to purchase .eth domain names using traditional fiat currencies.
When asked about future developments regarding ENS Domains’ integration with Coinbase’s product, a representative from the exchange stated that there is “more to come.” However, no further details were provided at this time.
In other news related to Coinbase, the exchange recently filed a mandamus petition in response to the Securities and Exchange Commission’s (SEC) alleged lack of specificity in digital asset regulation. Coinbase seeks additional clarity from the regulatory agency on this matter.