Coinbase Unveils ‘Smart’ Gas-Free Wallet

The cryptocurrency exchange Coinbase has launched the ‘smart’ Coinbase Wallet, which supports gas-free transactions.

The wait is over. Smart wallets are here. pic.twitter.com/jtXUNu1dq3

— Coinbase Wallet ?️ (@CoinbaseWallet) June 5, 2024

“Next-generation wallets eliminate the biggest pain points of today’s cryptocurrency — complex registration, network fees, and recovery phrases — making the transition to on-chain smoother,” the company stated.

The solution does not require the installation of an app or browser extension. It is available exclusively as a web version.

Registration does not require recording a secret phrase or setting a password. Access is granted via Face ID, Google profile, fingerprint, or a YubiKey hardware key.

Coinbase Wallet will support eight networks, including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora. This list is expected to expand with other EVM protocols in the future, but currently, only the test network for Base is open.

To transfer coins through the ‘smart’ wallet, there is no need to hold a gas token; instead, it will automatically execute the transfer using the preferred asset. Additionally, using the solution will avoid the ‘zero balance’ glitch.

The security of funds is ensured by access keys stored on the user’s device. Backups are held by providers like Apple, Google, and 1Password or on YubiKey devices. Password signatures are verified on the blockchain using an open-source smart contract. Coinbase itself does not store the keys.

Developers can customize the wallet for corporate and other purposes, with the technology allowing third-party applications to cover user fees.

The exchange’s solution resembles account abstraction, although direct mention of it was not found in the announcements.

In May, Coinbase Derivatives announced an expansion of its futures offerings beyond digital assets, adding oil and gold contracts for retail trading.

In the same month, the crypto exchange experienced a system-wide outage, which reportedly did not affect user funds.