Coinbase Introduces New Features

coinbaseCoinbase is adding new features to its wallet app. With the overall goal to cross into Web3, the product will focus on API-first, DeFi-first, and self-custody first, according to Chief Product Officer Surojit Chatterjee.

To streamline participating in self-custody and Defi, Coinbase is integrating its Pay software development kit (SDK) within its wallet. Consensys’ Metamask, the leading browser-based Web3 wallet will also be adopting Pay, said Chatterjee. Users will be able to purchase cryptoassets with fiat and transfer them to the self-custody wallet of their choice through Pay. A guest checkout option will become available for non-Coinbase users.

As long wallet addresses can become complex for identification purposes, “To reduce complexity, the Coinbase Wallet will allow a user to claim an Ethereum Name Service (ENS) address for free. ENS is just one of several services Coinbase plans to integrate,” a spokesperson told Blockworks.

Coinbase will also be releasing a self-custodial dApp wallet, made possible by multi-party computation (MPC), a cryptographic technique for secure private key management. Users will be able to buy NFTs on marketplaces like Coinbase NFT and OpenSea, trade on Decentralized Exchanges such as Uniswap and Sushiswap, and borrow, lend, or swap through DeFi platforms like Compound and Curve.

Users can access dapps without a recovery phrase. The wallet allows the ‘key’ to be split between the user and Coinbase. This adds a layer of security, if access to your device is lost, the key to your dapp wallet remains safe and Coinbase can assist in recovery through their live support. These assets will first be available to a selective amount of US Android users, with a plan to eventually expand to all users and platforms.

The wallet hopes to also support blockchains that are compatible with the Ethereum Virtual Machine (EVM) as well as a few particular others, including Solana.

ENS Hack: Use Any Web2 Domain as an ENS Domain

web2 into web3As the crypto universe buys up every .eth ENS domain name it can think of, one of the little discussed features of the ENS system is that users don’t even need a .eth address to be a part of it. Any regular old web domain name can become a valid ENS wallet address and in effect become web3. your-name-here.eth may look and sound cool as a wallet address, for example, but there’s no need to have it if you already have any already. Here’s how to do it:

1. First make sure you own the domain you want to use (.com, .org, .net, etc.) and that you have access to update the DNS records

2. Type in the full name of the domain on the ENS app.

3. If your domain name registrar doesn’t have DNSSEC enabled by default, you’ll have to enable it. Some have it enabled by default.

If you use GoDaddy, the option can be found at the very bottom of a domain’s DNS record page. GoDaddy might charge up to $35/year for this service. Once DNSSEC is activated, go to the domain name’s DNS record and click the 3 dots in the top menu of the DNS record and click “DNSSEC” from the dropdown. Click the “on” toggle for enabled and then enter your email address. Then click apply. Wait about 20 minutes for it to propagate.

4. Add a txt record to your DNS.
Host: _ens
Data: “a=0xxxxxxxxxxxxxxxxxxxxxxxxx” [but make sure the 0xxxx is your long eth wallet address. Keep the quotation marks as well]

Wait about 20 minutes for it to propagate.

5. Go back to the ENS app and click the “Refresh” button. If the DNS record is correct and has propagated, it will tell you that it’s ready to register. Click enter and it will prompt you to pay a one-time gas fee. It could be a little expensive but it’s not something you’ll have to pay every year to keep the arrangement in place.

6. That’s it. Set up your ENS record for it like you would any .eth. Put btc, ltc, and dogecoin addresses in it so that your web2 domain can receive any of those cryptos. Have fun.

1. MetaMask picked up on this right away when converted to web3
2. and the coinbase wallet are not yet configured to translate web2 addresses into web3 addresses. It translates my .eth no problem but claims that the .com is an “invalid email, phone or address.” It’s possible that Coinbase will upgrade its system to fix this.

What is the CoinbaseResolver Smart Contract?

coinbaseresolverA contract deployed on the ethereum blockchain this week is going to have a major impact on the ENS ecosystem, according to CroissantEth on twitter. Contract 0x0465719485dB64e24d73d1619E03950830E4A5b3, purportedly created by Coinbase Devs, will allow dApps to issue ENS subdomains off-chain but still have them be accessible through L1.

Croissant writes that this is different than just setting up an ENS subdomain because the entire process can be done without L1 transaction fees but still be recognized on the L1 network. This opens up the possibility of setting up unlimited subdomains on L2.

“A gateway can call to a resolver on an L2 network, & get the address corresponding to the ENS domain,” he wrote.

Such a feature will be further enhanced by a new subdomain registrar contract where owners of ENS domains will be able to delegate out subdomains they can’t control while at the same time retaining control of the top line ENS domain. Though he did not state a specific example, one could imagine that readers of our site could own bob.decashed.eth and sally.decashed.eth with no L1 transaction costs while at the same time we, as decashed.eth proper, could not control those subdomains nor would we lose control of our own top level domain.

A major implication of this is onboarding. With no L1 costs, it would make ENS subdomains, recognized at the L1 level, available to everyone that couldn’t previously afford an L1 ENS domain. And since it would actually sit at the L2 level, developers could then customize users “wallets” to be more user-friendly.

It remains to be seen if the speculation behind CoinbaseResolver actually comes to fruition.