Coinbase Simplifies Entry to Web3 With Wallet-as-a-Service

Coinbase has launched a business service that makes it easier for companies to onboard their users to Web3.

The new Wallet-as-a-Service (WaaS) enables companies to build fully customizable on-chain wallets for their customers that will store digital assets, facilitate transactions and act as the user’s digital identity, Coinbase said in a Wednesday (March 8) blog post.

“Traditionally, wallets have made it difficult for users to access and benefit from Web3’s potential because of their complex mnemonic seeds and counterintuitive [user interfaces (UIs)],” Coinbase said in the post. “In a world where wallets are simple, companies can finally build Web3 experiences accessible to everyone regardless of technical knowledge.”

With the new Coinbase WaaS, companies can use its wallet infrastructure application programming interfaces (APIs) to create wallets, offer them to their customers directly in their apps and onboard the customers with just a username and password, according to the post.

Introducing their customers to Web3 will enable companies to better engage and serve them, create immersive experiences, provide personalized shopping, build stronger communities, encourage reward redemption and launch new revenue streams, the post said.

“Whether enabling gamers to trade in-game items and currency or creating new avenues for loyalty programs such as token-based rewards, WaaS is a powerful tool for companies looking to tap into the potential of Web3,” Coinbase said in the post.

Several use cases for Web3 have been in the news recently.

For example, nChain and Unisot said Feb. 16 that they have partnered to improve supply chain traceability for all participants by incorporating nChain’s blockchain technology into Unisot’s supply chain traceability and sustainability platform.

In January, it was reported that Amazon plans to launch a non-fungible token (NFT) initiative in the spring. The company’s Web3 ambitions are said to include blockchain-based games and NFT collectibles.

In another recent deployment of Web3 capabilities, Mastercard has launched its Artist Accelerator to help musicians use Web3 to build their audience. This new initiative is designed to give musicians tools to function in a digital economy using the Polygon blockchain.

“Web3’s capabilities have the potential to open a new dimension for music content creation, collaboration and ownership; however, this nascent space has yet to fully deliver — particularly for emerging artists,” Mastercard said Jan. 6.