Coinbase Takes Web3 by Storm

In a bold move that has crypto enthusiasts buzzing, Coinbase has rolled out Web3 application functionality for select users of its mobile app. This update, announced on May 17, allows fortunate users to delve into decentralized applications (DApps) within the Ethereum network. Here’s how it goes down: users can now trade on NFT marketplaces, make swaps on decentralized exchanges (DEXs), and even play around with decentralized finance (DeFi) lending protocols—all within their Coinbase app.

A Warm Welcome to Hot Wallets

This new mobile browser isn’t just an empty promise; it comes with a hot wallet for exchanging funds. Unlike its rival MetaMask, Coinbase has introduced a co-custodial setup for its hot wallet. In layman’s terms, this means that while the company keeps one half of your wallet’s key, you get to hold the other half. It’s kind of like splitting the very last piece of pizza—you still share it, but you at least have a say in the toppings!

Safeguarding Your Crypto Assets

With the introduction of multi-party computation (MPC) technology, Coinbase aims to bolster user security. This tech ensures that the privacy of both senders and receivers is respected while guaranteeing transaction accuracy. Imagine a really complicated lockbox that requires both your combination and Coinbase’s to open—sounds fancy, right? Rishi Dean, Coinbase’s director of product management, explained that if you lose your device, the wallet key would still be secure, thanks to this clever setup.

Good News for Developers

This expansion is also a silver lining for Web3 developers, who often face hurdles in onboarding new users. With about 90 million registered users on its platform, Coinbase is a gold mine for developers looking to showcase their DApps. This newfound accessibility is like finally getting your parents to understand how to FaceTime!

The Financial Rollercoaster

Of course, Coinbase isn’t without its challenges. The platform recently launched its much-anticipated NFT marketplace, only to see a rather unimpressive first-day sales volume of just $75,000. When your baby (a.k.a. product) flops like that, it stings! Coinbase’s Q1 earnings report showed the first net loss since going public, with revenue dropping by 27% from the previous year. Talk about a rollercoaster ride—up one minute, down the next!