Coinbase has launched new product offerings to keep up with the competitive crypto space. The company said it was extending Web3 functionality to selected users in a recent announcement.
Coinbase’s new Web3 functionality will include having a hot wallet and a browser available to a selected group of mobile app users. The mobile app will allow selected users to access decentralized applications (DApps) running on the Ethereum network.
Coinbase extends Web3 functionality to users
The director of product management at Coinbase, Rishi Dean, said that the users eligible for this feature could start trading non-fungible tokens (NFTs) on popular marketplaces. They can also make token swaps on decentralized exchanges (DEXs) and interact with decentralized finance (DeFi) protocols.
Besides allowing mobile browser users to interact with DApps, customers can also access a hot wallet that allows them to exchange funds. The Coinbase hot wallet will feature a co-custodial functionality where the wallet’s private key will be stored by both the company and the user.
The mobile browser and the DApp functionality will be powered by multi-party computation (MPC). MPC encrypts user details and maintains the senders’ and receivers’ privacy while maintaining the accuracy of transactions.
Dean noted that having a co-custodial feature would boost the platform’s security because it could protect users in case there are flaws with the devices being used. “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,” Dan added.
Through this product, Coinbase is also planning to provide extra support to Web3 developers who have trouble attracting new users. The 90 million registered users on Coinbase can now view these DApp projects.
Coinbase expands product line despite rough Q1
This is the latest product that Coinbase has launched within a month. The company unveiled the Coinbase NFT marketplace beta version earlier this month. During the first day of this marketplace being in operation, Coinbase reported $75,000 in sales volume from 150 transactions.
During the first quarter, Coinbase reported a net loss of $430 million, which spooked investors since it was the first net loss since the company went public in early 2021. The company’s revenues during the quarter were $1.1 billion, representing a 27% year-on-year decline. The monthly users also declined from 11.4 million during the previous quarter to 9.2 million.