Coinbase Wallet Introduces Instant Messaging Feature via XMTP
Coinbase Wallet is upping its user experience game with a recent release of an instant messaging feature that harnesses the Extensible Message Transport Protocol (XMTP). With this novel offering, Coinbase Wallet users can now communicate using their Ethereum identities, a development that aims to strengthen privacy and reduce fraud in the crypto space.
The feature allows users to send messages to each other’s cb.id, .eth, or Lens usernames, providing a direct communication channel to the owner of a wallet address. This update is likely to decrease dependence on third-party platforms, subsequently minimizing risk and potential losses due to unverifiable Web3 identities. Notably, messages exchanged through this system are end-to-end encrypted, enhancing user privacy.
Current popular chat apps like Twitter, Discord, and Telegram do not offer Web3 identity verification. Hence, the inclusion of XMTP in Coinbase’s messaging protocol brings added value to users. It also reduces centralization; in case Coinbase discontinues its wallet or the company ceases to exist, users can still retain their XMTP chat histories and view them using other XMTP apps such as Lenster or OrbApp.
The introduction of this feature is a significant step towards the decentralization of communication within the crypto community. The use of XMTP protocol, developed by XMTP Labs, promises a future where the messaging network is gradually decentralized, giving more control and freedom to its users.
According to XMTP co-founder Shane Mac, XMTP is not an app but a protocol that other applications like Coinbase Wallet and Lens can leverage. This capability allows users to switch between apps without losing their identities or chat histories.
Coinbase Wallet has been pushing for increased adoption of Web3 usernames, offering free cb.id usernames to all users last September. The launch of the instant messaging feature furthers Coinbase’s commitment to facilitating human-centric crypto communication, making interactions easier and more intuitive for users.
The messaging service, built in partnership with Texas-based startup XMTP, uses the latter’s open-source Web3 messaging network. Initially available to a limited number of users, this feature marks a new way for people to engage with crypto.
By aligning with XMTP, Coinbase also highlights its dedication to building on top of existing protocols and fostering decentralization. This approach is mirrored in Coinbase’s efforts with its Ethereum layer-2 scaling network Base with Optimism. Instead of building their own stack, they’ve become committed partners to ecosystems they’re a part of.
Coinbase launched its self-custody wallet as a mobile application in 2017. Over time, the exchange has continued to improve its product with additional features focused on safety and usability. The recent introduction of the XMTP-based messaging feature solidifies Coinbase’s ongoing efforts to innovate and extend the functionality of self-custodial wallets. Despite recent regulatory challenges from the SEC, Coinbase maintains its commitment to pushing the boundaries of what self-custodial wallets can achieve, proving that it is indeed business as usual.
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