Coinbase, the renowned cryptocurrency exchange, is set to introduce an innovative smart wallet for its users. This new Coinbase Wallet aims to enhance user experience by simplifying the onboarding process, eliminating gas fees, and eliminating the need for recovery phrases.
The smart wallet technology is designed to streamline the process of creating a new wallet and onboarding onto a blockchain without the hassle of downloading a new app or dealing with recovery phrases. Instead, users can seamlessly integrate the smart wallet with major apps using various authentication methods such as Face ID, Google Chrome profile, fingerprint ID, or Yubikey. A passkey stored on users’ devices will be used for onboarding.
With self-custody features, the smart wallet allows users to make payments from their Coinbase Wallet or Coinbase account. Developers also have the option to sponsor transactions and waive gas fees through a paymaster.
A companion web app will serve as the primary platform for users, offering asset and identity management, buying, sending, swapping, nonfungible tokens, and transaction history. Coinbase assures users of a smooth and intuitive experience throughout their transactions.
Initially, the smart wallet will support various networks including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora. The smart wallet will be accessible to both users and developers free of charge. Coinbase announced in a post on its Canadian blog that current users can expect to use the new wallet in the coming months once all migration tools are finalized.
Smart wallet technology has been on the rise, with pioneers like Loopring and Argent introducing it in 2020. Ethereum developer Vitalik Buterin endorsed the concept the following year, highlighting the security and convenience features such as “social recovery” that eliminate recovery phrases.
The breakthrough technology for smart wallets on Ethereum, known as “account abstraction,” was introduced with the ERC-4337 standard in March 2023. Buterin reiterated the benefits of smart wallets in a blog post in June 2023.
Coinbase made smart wallets available to developers in March, marking a significant advancement in wallet technology.