Coinbase Unveils Enhanced Cloud Product With MPC
Coinbase has introduced an upgraded version of its cloud product, integrating multi-party computation (MPC) and offering users a web3 wallet solution on the Ethereum mainnet. The enhanced product, known as Coinbase Wallet-as-a-Service (WaaS), was made available to the public on May 23.
2/ With Wallet as a Service, users can create, access, and restore their wallets using just a username and password, all embedded directly within your app.
— Coinbase Cloud 🛡️ (@CoinbaseCloud) May 23, 2023
Customizable On-Chain Wallets
Coinbase initially introduced this offering in March, focusing on its potential to provide customizable on-chain wallets to companies and their customers. By incorporating MPC cryptographic technology, the solution eliminates the need for users to manage complex recovery phrases, enhancing user-friendliness.
A recent tweet from Coinbase highlighted that customers utilizing the MPC wallet solution can now create, access, and restore their wallets using a simple username and password. This streamlined process improves convenience and accessibility for users.
The Coinbase WaaS product also facilitates various interactions within the web3 space through APIs and SDKs. For example, the Coinbase Pay SDK enables the purchase of a wide range of digital assets, while an additional Coinbase API allows businesses to integrate crypto-based payments, including decentralized finance (DeFi) solutions.
Coinbase and Moonpay Collaboration
MPC solutions, like the one implemented by Coinbase, involve fragmenting the private key associated with a wallet into multiple shards, ensuring the secure storage of digital assets by distributing responsibility among multiple owners.
An important feature of Coinbase’s WaaS offering is that users have the option to remove their private keys from the exchange at any time, providing an added layer of control and security.
ENS Domains, an Ethereum-based naming service, has already started utilizing Coinbase’s WaaS product. Through a partnership with Moonpay, ENS allows users to purchase .eth domain names using traditional fiat currencies. When asked about future developments regarding ENS Domains’ integration with Coinbase’s product, a representative from the exchange mentioned that there is “more to come,” although no further details were provided at this time.