When it comes to crypto holdings, self-custody has always been paramount. Coinbase has taken this mantra to another level, announcing that its self-custody wallet will soon double as an encrypted messaging service. Through an integrated service powered by XMTP, a web3-based decentralized communications network, Coinbase is reimagining how users interact with their wallets.
In this new environment, the ability to send messages through human-readable Ethereum addresses, such as ‘.eth’ or ‘.lens’, come to the forefront. The Coinbase Decentralized ID (‘cb.id’) will still be a costless option for users. Wallet owners can look forward to an interoperable messaging system, which would allow them to move chats between Coinbase wallet and any other XMTP application.
Privacy and security remain sacred within the Coinbase domain. In a world rampant with data breaches, Coinbase reassures its users that their chats belong to them alone. With end-to-end encryption stored in XMTP’s decentralized and secure communication network, privacy and security are premium.
However, the merits of this service extend beyond communication. Payments suddenly become more personal and trustworthy, with users being able to identify the recipient before proceeding with the transaction. This simple act could eliminate unnecessary risks and potential losses, often incurred with wallet address confirmations.
The integration doesn’t stop at messaging either. The wallet will support thousands of different cryptocurrencies, facilitating seamless transactions. This extends to the Circle-issued stablecoin USDC, which will be gas-free thanks to Polygon – Ethereum’s layer-2 blockchain.
Simultaneously, traditional messaging services have also recognized the value of integrating crypto into their platforms. Telegram, for example, announced its chat API bot “Wallet” to facilitate Bitcoin and Tether (USDT) payments directly in its interface.
On the face of it, these developments showcase the revolutionary possibilities of blockchain technology. However, they’re not without their fair share of scrutiny. As recently as June, the U.S. Securities and Exchange Commission alleged that Coinbase Wallet had allowed Coinbase to operate as an “unregistered broker”, raising questions about the legality and safety of these practices.
Only time will tell how this interplay between messaging and cryptocurrency evolves, but for now, it’s safe to say that the financial world is in for a radical change.
Source: Cryptonews
