The latest buzzword in the crypto world is XMTP or Extensible Message Transport Protocol, making its mark with a new feature launched by Coinbase Wallet. This feature enables instant messaging, a seeming godsend to the crypto community, which can often be blighted by issues of fraud and impersonation.
Essentially, XMTP is a messaging system that utilises blockchain addresses to communicate, thus, increasing integration of blockchain technology into commonplace activities. Messaging via XMTP is end-to-end encrypted, promoting user privacy while reducing the degree of anonymity that often facilitates fraudulent activities. Users can now simply send messages to a wallet address owner, alleviating the need to hinge communications on other platforms where Web3 identities can’t be verified.
For Coinbase Wallet, the motive for this feature was the fight against scams in the crypto world, aiming for “an elimination of unnecessary risk and potential losses.” Decentralization, a foundational philosophy of blockchain technology, is another factor promoting the use of XMTP for messaging. In a hypothetical scenario where the wallet provider or company ceases operations, users can retain their XMTP chat histories and use other XMTP-compatible applications.
But surely, it’s not all sunshine and rainbows? Indeed, the new feature comes with its questions and potential issues. While Coinbase Wallet promises privacy through end-to-end encryption, there’s room to ponder over the absolute security of these messages. Ill-intent hackers have continuously proved their prowess in infiltrating secure systems, thus leaving users at potential security risks.
Moreover, XMTP’s functionality currently runs on a network completely owned by its developer. So, how decentralized is it, truly? While the developer, XMTP Labs, has stated a phased plan towards decentralization, users are left to watch this space, hoping the much-touted ideals of freedoms, privacy, and security in a blockchain-focused world continue to hold true.
The rapid evolution of blockchain and related technologies like XMTP doesn’t seem to be decelerating. As schemes to reduce risk and fraud, improve communication, and add a sense of community to the digital space like XMTP show up, vigilance comes hand-in-hand with progress, nested amidst this dynamic environment. You must remain updated and critical, as we edge closer to a future heavily reliant on blockchain technology.
Source: Cointelegraph
