Web3 adoption was made complex by poor user experience and seed phrases, which has hindered its use across industries. To address the issue, Coinbase recently launched a Web3 business solution targeted at enterprises looking to offer virtual wallets to their customers.
Streamlining Web3 Adoption
According to the American crypto exchange, the new wallet-as-a-service (WaaS) will provide firms with the technical features to create and launch on-chain wallets that are easily customized. In an announcement on March 8, the exchange revealed that WaaS has a wallet application programming interface (API) enabling businesses to create straightforward wallets for customer onboarding, in-game purchases, or loyalty programs.
As revealed by Coinbase, the lack of a wider mainstream penetration in Web3 wallets is due to their complexity and poor user experience, which made integrating mnemonic seeds difficult. Furthermore, Coinbase highlighted how WaaS would help solve the complexities associated with Web3 with the lead developer, Patrick McGregor, stating that the new solution provides complete control to users.
McGregor noted that WaaS has low implementation costs and less complexity, which would help brands improve their security while keeping risks at bay. The Web3 developer explained that firms today are forced to put users through complicated onboarding systems by instructing them to download self-custodial wallets from third parties.
According to him, this usually results in a high drop-off rate during onboarding, meaning an enterprise cannot deliver its product to intending users. Meanwhile, the WaaS toolkit is integrated with a multi-party computation (MPC), a form of cryptography allowing multiple entities to compute a function together without compromising their inputs.
MPC help enhance private critical security within the Web3 ecosystem. At the same time, an MPC crypto wallet allows token holders to secure their digital assets because their private keys are split into different parts and distributed among protocol participants.
McGregor noted that the issues of loss key that have been part of the self-custody space are eliminated with the launch of WaaS MPC cryptographic functionality. He added that their software development kits offer more solid and user-friendly functionality to ensure accounts back up.
Rise In Web3 Infrastructure
Despite the crypto winter, the demand for Web3 infrastructure solutions is gaining traction. Startups, large institutional firms, and investors continue to seek better ways to redefine the future of the decentralized environment.
However, skeptics are yet to be convinced that the existing Web3 modes are expanding decentralization developments around MPC. But, the rise of decentralized privacy suggests that many in the industry are beginning to take it seriously.
To McGregor, many firms are exploring how to develop their Web3 systems ahead of the next bull trend, a period where the prices of crypto assets generally rise. On the other hand, Coinbase has reported a substantial interest in token-based content, which will move the loyalty program to on-chain protocols and ensure deeper integration of games and assets.
The crypto firm is making strides to ensure that it keeps developing more innovative solutions to address users’ needs.
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