Coinbase Unveils Smart Crypto Wallet to Simplify Access to DeFi

In the continuous search for innovation, Coinbase, a giant in the US cryptocurrency market, launched its new Smart Wallet. This smart wallet, touted as a product that aims to simplify access to the DeFi space for newcomers, was initially introduced on ETHDenver in February. According to Siddharth Coelho-Prabhu, senior director of product management at Coinbase, “Smart Wallets allow users to create a free, secure, self-custodial wallet in just seconds.”

Unlike traditional methods that involve complicated recovery phrases and extensions, Coinbase Smart Wallets utilize industry-standard passwords and a companion web portal. This system is compatible with several important networks such as Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB and Zora.

One of the great advantages of the Smart Wallet is the simplification of the user experience, who is often overwhelmed by the complexity of DeFi operations. “Until now, getting on-chain has been slow, expensive and difficult, with separate installations of wallet apps and first-generation blockchains,” explained Coelho-Prabhu. Now, users can create a new wallet using accessible methods such as Face ID or a Google Chrome profile, among others.

Furthermore, fragmentation was a problem that Coinbase sought to solve with its Smart Wallet. Users can now withdraw directly from their Coinbase account balances or wallet balance with self-custody. This facilitates transactions across a wide range of cryptocurrency applications.

Another innovative feature is the possibility of carrying out transactions without gas. Developers and other parties can cover gas fees, allowing users to enjoy products and services for free. “The integration of smart wallets is simple and requires just a few lines of code,” said Coelho-Prabhu, highlighting that the system is already supported by popular crypto code libraries.

This initiative is part of the company’s larger objective. “Smart wallets are a revolutionary step in our mission to bring more than 1 billion users to the network,” he concluded.

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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.