Article Rewrite:
Authors: Mia, ChainCatcher
Translation: Marco, ChainCatcher
Recently, Coinbase announced the launch of the Coinbase Smart Wallet to the public, aiming to bring over 1 billion users into the world of blockchain by simplifying the user experience of the blockchain.
In February of this year, Coinbase first introduced the concept of its smart wallet at ETHDenver and provided a test version for developers.
So, what does the Coinbase Smart Wallet look like from the user’s perspective? What are its capabilities and limitations? Is it secure?
ChainCatcher will provide a firsthand experience for everyone.
What is the Coinbase Smart Wallet?
As an upgraded version of a self-custodial wallet, Coinbase states that its smart wallet addresses several key pain points in the current cryptocurrency experience, including complex onboarding processes, high network fees, and the need to recover phrases.
The Coinbase Smart Wallet offers a simple, gas-free on-chain experience, supports multiple chains, integrates major applications, and allows users to easily use blockchain technology as simply as logging into their favorite website.
Furthermore, by combining with next-generation Layer 2 networks like Base, the Coinbase Smart Wallet further enhances the efficiency and cost-effectiveness of on-chain transactions, making them simple, fast, and affordable.
Coinbase has stated that for existing wallet users, they will build migration tools in the wallet application over the next few months and support the smart wallet.
Firsthand Experience with the Coinbase Smart Wallet
As Coinbase’s Senior Product Manager, Siddharth Coelho-Prabhu, said, “The Smart Wallet is a significant breakthrough for us to achieve the goal of bringing over 1 billion users into the blockchain world.”
The convenience and smoothness of the Coinbase Smart Wallet reflect this statement.
When new users enter the login interface, they will see the smart wallet creation interface,
Clicking on the create interface will take users to the wallet creation page, where they can easily set up a wallet by choosing Passkey (Icloud Face ID, Google Chrome profile).
Compared to most wallets that require separate password and account creation, the creation of the Coinbase Smart Wallet is more geared towards Web2’s “fool-proof operation,” making it more convenient and simple.
Additionally, the mnemonic phrase can be directly backed up in iCloud, eliminating the need for users to back up.
Upon entering the Coinbase Smart Wallet, users can add various encrypted assets just like with previous wallets.
Currently, the Coinbase wallet page has been automatically updated to the Smart Wallet page and has launched a “go onchain” test task on the “Learn” page. The tasks include “Swap,” “Set Favorite Token,” “Mint NFT,” “Bridge,” “Stake,” and “Earn Token Rewards through Tasks.” Users can experience the functionality updates of the smart wallet by completing these tasks. Additionally, completing any three of the test tasks will reward users with an “Evolving Explorers” NFT.
For existing users, the changes in Mint NFT are more intuitive than the registration process.
Users can directly mint three free NFTs provided by Coinbase without paying any gas fees. The network cost will show as “0,” and the NFT can be successfully minted in a few minutes. This truly allows NFT players to experience “free” at its core, without worrying about projects issuing so-called “free mint assassins” for gas fees. Some NFT players have likened the smoothness of the operation to ordering takeout. In the Coinbase Smart Wallet, minting NFTs is as smooth and convenient as ordering takeout.
While providing convenience, Coinbase has not compromised on security.
For transactions involving asset on-chain interactions such as “Swap,” “Set Favorite Token,” “Bridge,” and “Stake,” the Coinbase Smart Wallet, like traditional wallets, requires transaction confirmation to ensure the security of the entire transaction.
In the Coinbase Smart Wallet system, the Web3 wallet has become like “Alipay” in Web2, where on-chain interactions no longer require complex signatures, private keys, or facial recognition to login, and operations can be completed with a simple touch.
Lowering the barrier for users to enter the Web3 world and solving entry barriers
In a blog post, Coelho-Prabhu wrote: “So far, (traditional wallet) on-chain operations have been slow, expensive, and difficult, requiring the installation of separate wallet applications and the use of first-generation blockchains.”
Unlike the previous generation of traditional wallets that require recovery phrases, applications, and extensions to access DeFi applications and services, the Smart Wallet uses industry-standard Passkeys. Since its release, it has been equipped with a web portal connected to Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, and Zora networks.
Users only need a universal Passkey, including Face ID, Google Chrome profile, Yubikey, fingerprint unlock, to create a free, secure self-custodial wallet in seconds, without the need to download applications or extensions or deal with recovery phrases.
Seamless on-chain payments
Coelho-Prabhu states: “The Coinbase Smart Wallet allows users to create a free, secure, self-custodial wallet in seconds. It simplifies the registration process, reduces the number of transactions that need to be signed, and allows you to seamlessly use Coinbase balances.”
Coinbase aims to address the fragmentation issue where users have to manage balances in multiple wallets when interacting with encryption in traditional wallets.
In the Coinbase Smart Wallet, users can support self-custodial wallet balances or Coinbase account balances for interactions without worrying about encountering errors such as “insufficient balance” during transactions.
Cross-app portability
In the Coinbase Smart Wallet, with fewer signed transactions, users can seamlessly use Coinbase balances and bring wallets, identities, and balances to thousands of on-chain applications. It can be used for hundreds of applications that are integrated with the Coinbase Wallet SDK and are compatible with EVM.
Gas-free transactions
Developers can choose to provide a gas-free experience and integrate sponsored transactions for customers by paying the gas fees through a proxy. In other words, developers or other parties can cover the user’s gas fees, providing free products or services. This undoubtedly greatly helps some free mint projects, as users do not need to pay gas fees for mint operations, truly achieving free mint on-chain.
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