Last Updated on March 9, 2023 by Bitfinsider

Cryptocurrency trading Coinbase has introduced a new business solution for businesses seeking to provide Web3 wallets to their clients, a move that the company claims will help expedite the uptake of Web3 goods and services.

Coinbase’s wallet-as-a-service, or WaaS, provides businesses with the technological infrastructure needed to build and start customizable on-chain wallets, according to an announcement made on March 8 by the exchange. WaaS, in particular, offers a wallet application programming interface (API) that enables companies to build wallets for easy client onboarding, loyalty programs, or in-game transactions.

Web3 wallets, according to Coinbase, have failed to obtain broader mainstream recognition due to their complexity, bad user experience, and the difficulties involved with keeping mnemonic seeds.

When asked how WaaS addresses the complexities of Web3 wallets, Patrick McGregor, the head of product at Coinbase’s Web3 Developer Platforms, stated that the new solution provides “control over end-to-end product experiences,” a reduction in “implementation cost and complexity,” and helps brands improve security while reducing risks.

“Today, businesses are compelled to force their users through perplexing onboarding processes, frequently directing users to obtain third-party self-custodial wallets,” he said. “This context swapping causes high drop-off rates during onboarding, implying that a business will never be able to give its product to customers.”

The WaaS toolset includes multi-party computation (MPC), a type of encryption that enables multiple parties to calculate a function together without disclosing their inputs to one another. MPC is said to improve private key security within Web3 systems in reality. Users can keep their digital assets more securely with an MPC crypto wallet because their private keys are split into numerous sections and dispersed among the protocol’s participants.