Coinbase: An Overview

Coinbase: An Overview

June 19, 2024

Overview

Coinbase is a cryptocurrency exchange platform, and a smart wallet is a secure digital wallet for managing cryptocurrencies, useful for onboarding new users.

3 min. read

3 min. read

3 min. read

What is Coinbase?

Coinbase is a cryptocurrency exchange platform that allows users to buy, sell, and store various digital currencies, including Bitcoin, Ethereum, Solana, and other crypto coins. It operates as a cryptocurrency broker, providing a user-friendly interface for individuals and businesses to engage with the cryptocurrency market.

What is a Smart Wallet?

A smart wallet, also known as a cryptocurrency wallet, is a digital wallet that securely stores and manages your cryptocurrency holdings. Coinbase offers a smart wallet feature, which allows users to store their digital assets in a secure, online environment. 

Unlike traditional wallets, which are established off-chain and managed by private keys, smart wallets use smart contracts, which are lines of code that a third party cannot remove or modify.

Smart wallets work directly within your web browser, removing the need for plugins or application installations. They use passkeys for signature verification, which provides high-level security without the complexity of seed phrases. Passkeys can be a touch or face ID or other similar means of authentication.  With a single wallet and a universal address, these wallets work smoothly with various blockchain networks and on-chain applications.

Are Smart Wallets Helpful for Onboarding New Users?

Coinbase's smart wallet is beneficial for onboarding new users into the cryptocurrency ecosystem. It simplifies the process of buying, storing, and managing digital assets through an easy-to-understand interface. This feature eliminates the need for users to navigate complex technical aspects, making it easier for beginners to understand and participate in the cryptocurrency market, even without deep knowledge of how crypto and blockchains work.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024