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Category: Fintech and Blockchain
Fintech and Blockchain is where Truer Vine News updates information related to Fintech that affects Blockchain in general and certain digital currencies in particular.
Fintech is currently working for all companies using the Internet, mobile phones, open source software, cloud computing technology or cryptocurrencies like Bitcoin, with the aim of making transactions simple, Convenience and improve the efficiency of banking and investment activities.
A traditional financial market will include 2 subjects: Financial institutions (banks, investments, insurance, securities, financial companies) and customers.
For fintech, the subjects will include three parties, maintaining an interactive relationship: Fintech companies, financial institutions and customers.
In the financial sector
Thanks to the application of Fintech technology, customers today can borrow money on applications such as Doctor Dong, One Click Money, Cash 24, Money Cat, Senmo… without meeting. The process from document preparation to disbursement is done 100% online. Customers who want to borrow just need to submit an application via the website or application, the lending organization will base on that information to approve the loan without having to meet in person for appraisal. The loan amount will be transferred directly to the bank account provided by the customer. The debt repayment process is also done 100% online, helping borrowers save a lot of time and travel costs.
In the banking sector
Mobile banking applications (also known as Mobile banking) are the most typical examples of Fintech in the banking sector. These applications are managed by banks and linked with Fintech companies to deploy. When using the banking application, customers can manage their personal accounts, perform transactions such as bill payments, internal and interbank transfers quickly without having to go directly to the offices. transactions for procedures. It can be seen that Fintech technology is the bank’s extended arm that helps banks easily connect with customers across all regions of the country.
Fintech in securities
In recent years, instead of opening many trading floors, brokerage companies can now switch to online forms. At that time, stock players do not need to go directly to the exchange but can still place buy and sell orders with stocks listed on the exchange. This can help investors be proactive in their buying and selling time, and help players continuously update stock information daily. Some typical stock trading applications include: Olymptrade, Mitrade.
Blockchain is a public accounting ledger. In it, all information is stored and transmitted transparently, completely, and cannot be changed or fraudulent. This is a new technology that helps to greatly improve the limitations of traditional ways of storing and exchanging information. For this reason, blockchain is increasingly widely applied in many fields: financial economy, education, agriculture, industry, entertainment, health or education and many other fields.
More technically, Blockchain is a distributed (decentralized) database in which data is stored in the form of blocks. The body of a block carries transactions on data (like a state machine). Blocks are connected together in the form of a linked list (linked list) in SHA256 encryption. The encryption of a block includes both the address of the previous block and its own body, so once a block is added, it cannot be changed or rearranged.
If you still don’t understand, you can imagine blockchain as the history you often see in Git. Each commit is a block. We can easily view old commits, as well as track who did what on our source code, the blockchain is the same.
The difference and also the quintessence of blockchain is that it is not located in one place like Git (git servers), but is distributed into many places (many nodes), and all are peer-to-peer. Therefore, each change on a node must be approved by the whole network (all nodes).
Friend.tech, a blockchain-based application on Ethereum L2 Base that allows cryptocurrency users to benefit from the social influence of their online friends, has generated more fees than the Ethereum (ETH) and Bitcoin networks (BTC) in the last 24 hours.
Data shows that the Friend.tech team earns $1 million per day
Yesterday, September 15, 2023, the Friend.tech app team on Base earned over $1 million in revenue. During this time, the net income of all Ethereum (ETH) validators only totaled $406,000.
Additionally, according to data from analytics platform Token Terminal, the much-hyped SocialFi app has surpassed the Tron (TRX) blockchain, which is the core technological base for USDT remittances.
According to another tracker, CryptoFees.info, Bitcoin (BTC) generated $866,000 in fees, while BNB Smart Chain (BSC) generated around $300,000.
As a result, a group of applications collected more fees in 24 hours than each main blockchain, both programmable and non-programmable. Meanwhile, three weeks ago, at the end of August 2023, some experts said Friend.tech was finished after a 95% drop in activity.
The social network has been joined by a number of crypto influencers, including Sean Ono Lennon, son of John Lennon, and Coinbase CEO Brian Armstrong.
In this application, people can trade “keys” or “shares” at very fluctuating prices related to the popularity of this or that individual in the Web3 sector. At the same time, Ethereum (ETH) fees continue to decrease.
Currently, gas on the Ethereum (ETH) network is at 10 Gwei, allowing users to transfer USDT onchain for sub-dollar fees. Over the past seven days, Ethereum (ETH) has not even kept deflation in check: Its token burning mechanism has become too weak to “overcome” new token issuance.
According to statistics shared by the Friendzy team, the app has generated a cumulative volume of $920,000 since its launch on September 19.
Like Friend.tech, Friendzy allows users to tokenize their Twitter accounts, creating the opportunity for other users to buy and sell these tokens to participate in private conversations.
The spokesperson added that “we will surpass $1 million in volume” by the end of the day.
By comparison, weekly volume on Friend.tech has hovered above $2 million over the past two weeks, according to data from CryptoKoryo’s Dune dashboard.
Launched in August 2023, Friend.tech’s activity returned this month as total deposits and activity on the platform spiked after a brief slowdown at the end of August.
Friendzy takes on the leadership role
The Solana app will differentiate itself from the incumbent on Base by offering additional features alongside premium chat and rolling out a smoother pricing curve, the spokesperson said.
Similar to Friend.tech on the Base blockchain incubated by Coinbase, Friendzy encrypts Twitter accounts into “Keys”.
These Keys unlock certain benefits for the Key holder “the nature and extent of these benefits are determined by the Creator themselves,” the Friendzy app’s FAQ page says.
The price of a Key account on Friendzy depends on its demand and the number of holders.
In these applications, money is not exchanged between traders. Instead, these are more like decentralized exchanges, where traders buy and sell Keys according to smart contracts, locking assets during the purchase process and determining the Key price based on a predetermined formula.
A Friendzy spokesperson added that Friendzy’s prices are gradually increasing compared to Friend.tech. In the past, Friend.tech has been criticized for having too high a pricing mechanism.
Friendzy’s top accounts stock costs around $10 or about $0.50 SOL. Meanwhile, top Friend.tech accounts are selling for $7.22 Ethereum or $11,350.
Platform account holders earn royalties on both platforms when their tokens are traded on the market.
Having a steeper price curve on Friend.tech results in higher royalties for Key holders compared to Friendzy, which further motivates users to increase the value of Key Friend.tech.
According to CoinGecko research, the top 3 accounts on Friend.tech have earned up to $100,000 in royalties since inception.
The world of decentralized finance (DeFi) and blockchain technology continues to push boundaries, and Friend.tech Protocol is at the forefront of this innovation. Recently, the platform achieved a major milestone by surpassing 10,000 ETH in revenue, reaching an impressive total of 10,644.8 ETH.
At the same time, the platform’s Total Value Locked (TVL) exceeded 30,000 ETH, reaching 30,165 ETH. But Friend.tech is more than just a DeFi success story; It’s a decentralized social network with a unique twist.
Friend.tech: DeFi combines social networks
Friend.tech Protocol is redefining the concept of social networks by integrating DeFi elements. At its core, the platform allows users to buy and sell “keys,” formerly known as “shares,” linked to Twitter accounts (now X). Keys grant access to private in-app chat rooms and exclusive content from the respective X users. In essence, Friend.tech markets itself as “a marketplace for your friends,” offering a new approach to social interaction.
Each user on the platform has a dedicated chat group, similar to those found on platforms like Telegram. However, it is worth noting that users must key to enter other people’s private chats. This model encourages users to invest in keys to access exclusive content and conversations, driving unique social dynamics.
Friend.tech Protocol’s meteoric rise is not only due to its innovative social network model. A significant contribution to its success has been the deployment of more than 450 “sniper bots,” automated trading tools that have earned a total of more than $5.9 million. Incredibly, these bots account for 34% of creator revenue on the platform, showing the potential of such tools in the DeFi space.
While the platform has received praise for its innovative approach to social media, its DeFi aspect cannot be overlooked. Achieving a turnover of over 10,000 ETH and a TVL exceeding 30,000 ETH is a testament to its popularity and the growing demand for DeFi solutions.
A new model in social networks
Friend.tech Protocol’s unique combination of DeFi and social networks is attracting attention from both crypto enthusiasts and social media users. It represents a paradigm shift in the way we interact with our digital communities. By encrypting access to exclusive content and chat rooms, Friend.tech is tapping into the growing trend in digital experience measurement.
The platform’s success underscores the evolving landscape of blockchain technology, where innovation knows no bounds. Friend.tech is leading the way and its journey is far from over. As it continues to grow, it could pave the way for more DeFi-infused social networks and redefine the way we connect and interact online.
In summary, Friend.tech Protocol’s remarkable achievement of surpassing 10,000 ETH in revenue and surpassing 30,000 ETH in TVL is a testament to its unique approach to social networks and its success in the DeFi space.
Bitcoin (BTC) price closed September on a bullish note, ending the month up nearly 5%. The beginning of October brought a significant price increase and this is still ongoing.
Bitcoin price closed the weekly candlestick in green
Technical analysis from the weekly timeframe shows that BTC price has increased since the week starting September 11. This increase confirms the horizontal zone of $25,300 as support.
The increase continued to accelerate last week, leading to the creation of a bullish engulfing candle.
This is a type of candle in which the entire loss of the previous period has been erased. This is considered a positive sign for the future trend. However, despite the recovery, Bitcoin has not been able to erase the losses of the August 17 drop (red symbol), where BTC created a bearish engulfing candle.
The candle started at $29,200, slightly below the $30,500 horizontal resistance area.
The weekly RSI is rising. RSI is a popular indicator used by traders to measure momentum and make decisions to buy or sell their assets.
A reading above 50 and sloping upward is considered bullish, while a reading below 50 is considered bearish.
The indicator is currently above 50 and rising, both of which are signs of an uptrend. The continued increase shows that the previous drop below 50 (red circle) was just a deviation, another sign regarding the bullish trend.
BTC Price Prediction: Clear the resistance trendline and regain upward momentum
Technical analysis from the daily timeframe also provides a bullish outlook. Bitcoin price has broken above the descending resistance line, indicating that the previous correction is complete.
BTC is trading inside the 0.5 and 0.618 Fib retracement resistance zones at $28,350-$29,150.
Whether it can overcome or be rejected will be a key factor in determining future trends.
Like the weekly timeframe, the daily RSI supports a bullish continuation above 50 and is moving up.
If the price closes above the 0.618 Fib retracement level, it could rally another 10% to the yearly high near $31,500.
Despite this bullish prediction, a rejection by the 0.5-0.618 Fib zone would likely result in a 7% decline. This would take Bitcoin price down to the previous descending resistance line at $26,500.
The introduction of EIP-7503 introduces an advanced private ETH transaction model that includes Burn and Remint processes.
The Ethereum community is focused on discussing the Dencun testnets, along with the evaluation and implementation of Holesky.
The event covers a diverse range of topics, from the Dencun testnet, detailed reviews, the anticipated launch of Holesky, to groundbreaking proposals for private ETH transactions and notable changes in EIP regulations -6780.
Explore Your Guide to Trading ETH Privately
One of the highlights of Ethereum ACDE 171 is the introduction of EIP-7503, a proposal that aims to revolutionize private transaction processing on the Ethereum blockchain. This model proposes a unique approach: allowing private transactions through burning and recreating ETH. This concept has attracted great interest in the Ethereum community, because of its potential to improve privacy and security for Ethereum users.
The event agenda, available on GitHub, provides a comprehensive summary of the topics discussed throughout Ethereum ACDE 171. This gives participants and fans a clear view of the discussions. arguments and decisions are made. The Ethereum community has come together to research these important issues, emphasizing transparency and a spirit of collaboration.
Dencun Testnet, Review and Impact of Holesky on Ethereum
Furthermore, Ethereum ACDE 171 was streamed live on the YouTube platform, opening up opportunities for global viewers to participate and stay informed about the latest developments in real time. Live streaming provides a unique opportunity for viewers to follow the discussions, presentations and interactions that take place throughout this important event.
Ethereum continues to evolve and adapt, and events like Ethereum ACDE 171 play an important role in shaping its future. With groundbreaking proposals, important regulatory changes, and strong community engagement, Ethereum is becoming more powerful and user-friendly. The Ethereum community is eagerly awaiting the outcome of these discussions and the potential impact they could have on the blockchain ecosystem.
Polkaswap is a decentralized exchange (DEX) designed for the interoperable future of decentralized finance (DeFi). So the platform’s plan has always been to pool as many assets from as many chains as possible. Polkadot will greatly simplify this process by providing a Host Relay Chain, a cross-chain message passing protocol, also known as XCMP, and timed execution zones. protected shareable (SPREE). However, to take full advantage of the above technologies, it is necessary to connect to the relay chain in the form of a parachain.
Parachain can be considered a fertile ground for independent economies to operate and complete with their own native tokens if desired. These specialized chains run in parallel and are fully interoperable with the rest of the Polkadot network through secure message passing with relay chains. Therefore, it is important that any player who wants to perform custom calculations, store data, or run their own economy in the Polkadot ecosystem without paying exorbitant fees gets a position. parachain location.
Kusama Network is designed to be faster than Polkadot for testing purposes. Although they have many similarities, they are separate networks. Having a parachain position on one network will not mean having access on the other.
What is Polkaswap?
Polkaswap is a non-custodial cross-chain AMM-DEX protocol for token swaps based on the Polkadot (and Kusama) network, parachain and blockchain connected via bridge. The Polkaswap protocol effectively eliminates intermediaries that require trust and provides faster trading opportunities. Polkaswap is open source software licensed under Apache V2.
How does Polkaswap work?
Polkaswap is a DEX capable of establishing multiple liquidity sources according to a liquidity aggregation algorithm. When traders request the swap function, the liquidity aggregation algorithm will execute the order using the best offers from liquidity sources. Liquidity sources can be AMMs, order books or other algorithms. Since Polkaswap is an open source project, it is possible to add more sources of liquidity by developing within the Polkaswap module.
Does Polkaswap have tokens?
Yes, Polkaswap has a token called PSWAP. Polkaswap allows users to create liquidity pools for token trading pairs in Polkaswap and receive PSWAP rewards. Transaction fees are used to redeem and burn PSWAP. New PSWAP is minted to reward liquidity providers, but is done in a deflationary manner as more PSWAP is burned than the amount of new mint. The PSWAP token issuer will be a smart contract that distributes PSWAP according to programmed logic to incentivize Polkaswap growth. Additionally, the XOR token will be used to pay network transaction fees.
What is the utility of the PSWAP token?
The PSWAP token also incentivizes liquidity providers, using a deflationary model relative to the token supply. 0.3% of the fee of each transaction in the Polkaswap DEX is used to redeem PSWAP. Part of these PSWAPs are allocated to liquidity providers and part is burned to reduce supply. Initially, 100% of PSWAP buybacks are allocated to liquidity providers, but over time this percentage gradually decreases with tokens being burned.
How is Sora (XOR) used in the Polkaswap protocol?
Polkaswap will be built on SORA Network and SORA token (XOR) will be used to pay gas/fees and provide liquidity on Polkaswap. XOR is a utility token for providing liquidity on Polkaswap because it is stable (minimizes temporary losses), has high liquidity (thanks to the market maker using a token bonding curve model), and is neutral with other projects in the Polkadot ecosystem but using DOT and KSM as reserves.
How is price determined on Polkaswap?
The design of the Polkaswap protocol allows for multiple sources of liquidity per token pair. Each liquidity source will have its own algorithm to determine the price. When users request swap functionality, Polkaswap’s liquidity aggregation algorithm will execute the order using the best offers from liquidity sources.
Is Polkaswap completely permissionless?
Correct! The Polkaswap protocol and traders are uncensored and permissionless. Technically, developers cannot stop or edit smart contracts in any way once they have been deployed. Deployment of developed code will be decided by the community and is not a decision of the developers.
What is Polkaswap Pool?
There will be many different pools in Polkaswap. The platform will start with the classic 50/50 XYK pool, then add more pool technologies to provide a better trading experience for users. Polkaswap will have a liquidity aggregation pipeline algorithm that executes transactions according to the best supply using multiple pools simultaneously.
Are there risks in using Polkaswap?
The Polkaswap protocol’s smart contracts will be audited and it is designed with security as a top priority. The code will be audited by a professional company; however, it cannot be guaranteed to be error-free in the future. Do your own research and always use caution.
Compare DEXs on Polkaswap and DEXs on Ethereum
Multiple assets exist on multiple chains: Polkaswap has the ability to go beyond the limits of the current Ethereum DEX with the opportunity to add tokens from the Polkadot ecosystem as well as from other blockchains to the exchange. In doing so, trading pairs on Polkaswap are not limited to ERC20 tokens like other DEXs, but to any blockchain that is being connected to Polkadot. It has some outstanding features such as:
Reduced gas fees: On the current Ethereum DEX, gas prices for transactions are unreasonably high and not suitable for retail traders. Transaction gas fees will be lower using SORA Network because the network has a core infrastructure using Substrate which is more scalable than Ethereum because it does not use the costly PoW algorithm. Finally, the Polkadot architecture as a whole allows for almost limitless composability between blockchains, so the economics of transaction volume scaling can make costs lower on the platform. Modern and scalable architecture.
On-Time Transactions: If you are currently using a DEX on the Ethereum blockchain, you will find that these DEXs are too slow because there is a delay between the time a transaction is sent and validated. Polkaswap solves this by using Substrate, which is much more performant than Ethereum. Going forward, the multithreaded and scalable architecture of Hyperledger Iroha v2 (written in the high-performance Rust language and Sumeragi voting-based consensus algorithm) will provide fault tolerance and capable of validating tens of thousands of transactions within seconds, providing Polkaswap users with an experience more similar to trading on a CEX (centralized exchange) than current DEXs.
Experienced team: Decentralized exchange protocols are often built by new, inexperienced developers. As we saw with bZx, Balancer, dFund, where hacks arose from smart contract logic errors. Developed by Japanese blockchain company Soramitsu, with experience developing the digital currency of Cambodia’s central bank, the company’s ambition is to create a framework that meets the needs of interoperable DeFi applications. Collaborate on multiple public blockchains.
Percentage of tokens burned to reward liquidity providers on Polkaswap
Like Uniswap, Polkaswap will charge 0.3% trading fees for each transaction. Transaction fees are used to buy back and burn PSWAP tokens. New PSWAP tokens are minted to reward liquidity providers. Rewards for liquidity providers start at 100% of burned transaction fees and gradually decrease to a fixed 35% of daily token burn after 5 years.
Polkaswap and Sora
Polkaswap operates on SORA Network, has its own network and technology, and is intimately integrated with Polkadot. The aim of this hybrid solution is to have the best parts of the Polkadot technology and network, while focusing exclusively on the specific framework in DeFi.
Since Polkadot’s relay chain does not handle smart contracts, Polkaswap must be built on a scalable and robust platform that allows smart contracts to connect to Polkadot’s relay chain.
What is SORA?
SORA is both a new economic system and a network that implements a new way to build blockchain in the form of a parachain connected to the relay chain and Polkadot ecosystem, with integration tools focused on DeFi. SORA Network provides tools for decentralized applications (DApps) that use digital assets, such as atomic token swaps, token bridges to other blockchains, and asset-related programmatic rule creation digital. In addition to Polkaswap, one of the main applications running on SORA Network is the SORA decentralized economic system.
SORA NEO: New economic order
SORA operates as an autonomous virtual state, governed by XOR holders through a multi-authority partition, where token holders can vote to create and allocate new tokens for productive uses in its ecosystem. The project develops based on macro research and the latest DeFi features.
SORA Network uses Substrate and includes bridges to many other blockchains, such as Ethereum and Bitcoin. SORA Network will have its own set of validators and is planned to have its own parachains on Polkadot and Kusama.
SORA Network’s parachains are like a compatible bridging plank for any Substrate-based network. This framework will standardize direct, secure interaction between Polkadot parachains deployed on Substrate, Polkaswap, and SORA Network. Such design allows bridging with full security of the connected parachain. On the other hand, while this parachain uses relay chain security, the level of bridge security is designed to be on par with Polkadot relay chain security.
The SORA parachain bridge is an innovation for the Polkadot ecosystem, providing a new framework for building bridges and parachains connected to the relay chain that could become a new standard. Additionally, any user of Hyperledger Iroha v2 (like some enterprise use cases) will also be able to leverage the parachain bridge at launch and communicate with any Substrate chain. This makes the process of moving assets between many existing use cases and the overall Polkadot/Kusama ecosystem much simpler.
At the start, SORA Network will be completely built using Substrate. However, going forward, SORA and Polkaswap will leverage the Hyperledger Iroha 2 framework using Iroha Special Instructions. This is a set of tools for creating powerful and composable applications for digital assets. Functions such as asset creation based on certain event triggers, atomic token swaps, and many more useful functions for DeFi applications are integrated into HL Iroha 2. Sumeragi consensus algorithm achieves consensus The consensus is Byzantine fault-tolerant without using a PoW algorithm, instead adopting a vote-based block proposal and transaction completion method that can achieve results within seconds. This means a transaction throughput capacity of up to 20,000 TPS is possible.
This faster type of consensus will provide a better user experience, close to the speed of CEX, for Polkaswap users, while the overall Polkadot architecture allows for almost limitless composability between chains.
Parachain SORA auction participation rewards for Polkaswap
While the exact amount of KSM or DOT required to gain parachain placement is unknown, without community support, the ability to gain parachain placement on Kusama and Polkadot will be extremely difficult . The role of the community is therefore crucial in the search for parachain placement and is reflected in the generous incentives provided in the auction.
Polkaswap is setting aside up to 30% of the total PSWAP supply (30 million PSWAP) to reward the community for helping the SORA network win and maintain parachain auctions on Kusama and Polkadot for the first 6 years. After 6 years, SORA Parliament will fund future parachain leases.
While the specifics may change as Polkaswap learns more, in general they want to use up to 10% of PSWAP (10 million tokens) for proportional distribution to community members who agree Support their tokens for 2 years throughout the upcoming parachain auctions on Kusama and Polkadot.
If the winning bid in the auction is not successful, the contributor’s tokens will be refunded. In this case, Polkaswap will repeat the process at the next scheduled auction until it successfully wins the parachain.
The National Bank of Cambodia has officially launched a new payment system based on distributed ledger technology (DLT), according to Reuters.
Together with Japan-based blockchain company Soramitsu, the Bank is developing an initiative called Project Bakong. Accordingly, the Central Bank of Cambodia has launched a payment system built on Hyperledger Iroha.
At a conference earlier this year, Chea Serey, director general of the National Bank of Cambodia, described the platform as a “payments backbone” rather than a central bank digital currency. She also said the two goals of the project are to provide Cambodian migrant workers with a better solution to send money back home and to encourage more use of the local currency riel. In Cambodia, more than 90% of the economy is based on the US dollar.
To use the system, people will have to register with one of the institutions in a network of about 20 banks in Cambodia. Registration will require submitting a government ID and phone number.
Speaking on Wednesday at an official launch event, Serey also said she hopes Bakong will “promote social welfare and prevent the spread of epidemics by facilitating electronic payments easily.” seamless way without the need for cash,” The Bangkok Post reported.
Coinbase introduced a product called Wallet-as-a-Service (WaaS), which allows companies to create fully customizable Web3 wallets in their own applications with the participation of User participation is as simple as in Web2 applications.
In a published blog post, Coinbase argued that wallet complexity remains a major challenge due to memorization requirements (restore seed phrase backups) and a counterintuitive user interface regardless. There are many opportunities for brands in Web3 to create new revenue streams and increase user engagement.
Why is this product important?
Using Coinbase WaaS, companies can build native wallets directly into their own applications to create a more seamless experience without redirecting users to any external applications or spending time, resources significant resources and expertise to develop their own solutions.
Without the need to set up and secure a complex 24-word recovery cluster, WaaS provides users access to Web3 using Multi-Party Computing (MPC). MPC is a cryptographic technology that can improve on existing multi-signature techniques, allowing wallet keys to be effectively “split” between users and Coinbase.
Patrick McGregor, head of product for Web3 developer platforms at Coinbase, said that because the full private key never exists in a single location, stealing the key is extremely difficult, even even if the device is compromised.
The design of WaaS means that if a user loses access to their device, the Web3 wallet’s keys remain safe and can be safely recovered. Coinbase can lock the wallet if notified by the user, preventing the wallet from being used to sign transactions. McGregor added that the design of MPC wallets means they are also cross-chain, offer cheaper transaction fees, more privacy for users, avoid smart contract risks and are interoperable with other platforms. ecosystem standards.
While current web3 wallets have functionality for advanced and experienced users, the user experience is inconsistent due to lack of strong wallet integration with applications, portability across devices, and lack of functionality. Safe wallet storage and recovery are pointed out by McGregor as the main challenges that WaaS can overcome.
Companies such as Floor, Moonray, Thirdweb, and Tokenproof have begun using WaaS to onboard Web3 users to token-input games, events, and digital marketplaces.
How it works
WaaS is a set of secure and scalable APIs designed to remove the complexity of blockchain infrastructure, providing access to Web3 wallets with the ease of use of Web2, while Coinbase handle everything below.
The newbie-friendly approach allows users to create, access, and restore wallets with simple authentication such as username and password. MPC technology helps keep user assets safe by splitting, encrypting, and distributing keys among multiple parties. McGregor explains that the keys used for signing are encrypted, requiring hardware-secured biometrics for decryption and multi-factor authentication (like Google Authenticator and YubiKey), which verifies before restoring the wallet.
While both multi-signature and MPC solutions allow multiple parties to secure assets, instead of using multiple individual signatures validated by a multi-signature smart contract, MPC introduces a “delegate structure multiple users,” meaning “it takes multiple people to create a single signature,” McGregor added.
Compared to most Web3 wallets, this means users don’t have to manage keys alone. While there may be a trade-off between convenience and complete self-custody, users retain control of their assets and can export keys to other software platforms at any time.
Coinbase’s WaaS initiative, aimed at helping scale the Web3 ecosystem, comes two weeks after launching its own Ethereum layer 2 Base network in February.