Coinbasehas stepped up its user experience with the introduction of an encrypted messaging feature in its wallet. This move marks a significant advancement in the company’s pledge to leverage the potential of decentralization to serve its growing community.
A leap towards interactive communication via XMTP
Capitalizing on the capabilities of the Extensible Message Transport Protocol (XMTP) – an innovative communication system designed for blockchain addresses – Coinbase Wallet is set to revolutionize the way its users connect. All users, whether they possess cb.id, .eth, or Web3 platform Lens usernames, can now interact directly through the new feature.
Siddharth Coelho-Prabhu, Director of Product Management, shared, “Coinbase gives users the advantage of transferring their dialogues from approximately 450 XMTP applications directly to the Coinbase Wallet.” Notably, the implementation of XMTP ensures not just seamless communication but also gives users complete control over their conversations and transactions through their distinct on-chain identity.
Interestingly, although the messages leverage crypto wallet infrastructure for exchange, they do not leave traces on the blockchain, differing from traditional asset transfers. Messages travel via a network of nodes that XMTP Labs controls, a firm that is striving to achieve full network decentralization.
A decentralized strategy to mitigate fraud
This encrypted messaging feature is a key milestone in Coinbase’s efforts to address fraud. The feature, initially accessible to users scanning a QR code from a blog post or those owning Lens profiles, enables wallet owners to communicate directly, thereby eliminating dependence on other unverifiable messaging platforms.
Coinbase’s move signifies a significant enhancement compared to widely used chat applications like Twitter, Discord, and Telegram, which currently do not facilitate verification of users’ Web3 identities. The step not only ensures an added layer of security but also minimizes potential losses.
Further, Coinbase’s usage of XMTP paves the way for increased decentralization. Even if Coinbase discontinues its wallet services or ceases to exist, users can maintain and view their chat histories using other XMTP-enabled apps such as Lenster or OrbApp.
By integrating XMTP into its wallet, Coinbase fuels the broader acceptance of Web3 usernames. This move is in line with the firm’s previous initiative to provide free cb.id usernames to all users, an effort that culminated in a surge of registrations. The adoption of user-friendly names, in place of intricate crypto addresses echoes Coinbase’s mission to make the crypto environment more navigable and user-centric.