Coinbase Wallet, a popular mobile wallet for Ethereum, has unveiled a new feature that allows users to engage in instant messaging using their Ethereum identities. The feature leverages the Extensible Message Transport Protocol (XMTP), a blockchain-based messaging system also utilized by the decentralized social media network Lens.
Initially, select Coinbase Wallet users can send messages to others using their cb.id, .eth, or Lens usernames. While the feature is being gradually rolled out, eventual access will be granted to all users. To ensure privacy, the messages are encrypted end-to-end, and users have the flexibility to block unwanted addresses from sending them messages.
Coinbase’s motivation behind this feature release is to combat fraud within the crypto community. By enabling direct messaging between wallet address owners, users no longer need to rely on external platforms where Web3 identity verification may be lacking. This move aims to eliminate unnecessary risks and potential losses.
Currently, popular chat applications used by crypto enthusiasts, such as Twitter, Discord, and Telegram, do not provide options for verifying Web3 identities. Coinbase argues that utilizing XMTP for messaging fosters decentralization. Even if Coinbase discontinues its wallet service in the future, users can retain their XMTP chat histories and seamlessly transfer them to other XMTP apps like Lenster or OrbApp.
According to XMTP documents, the protocol operates on a network exclusively owned by its developer, XMTP Labs. However, the company intends to progressively decentralize the network. XMTP co-founder Shane Mac emphasized that XMTP is not an independent social media or messaging app but rather a protocol that developers can integrate into their respective applications. This approach enables users to retain control over their identities and chat histories while choosing the app that suits them best.
Coinbase Wallet has been actively promoting the adoption of Web3 usernames. In September, the platform offered free cb.id usernames to all users, resulting in a surge of registrations. Web3 usernames enable users to send cryptocurrencies to easily readable names instead of complex alphanumeric addresses.
By introducing this feature and supporting XMTP-based messaging, Coinbase Wallet aims to enhance user experience, privacy, and decentralization within the crypto ecosystem. This move aligns with the growing trend of Web3 username adoption and reinforces Coinbase’s commitment to fostering innovation in the blockchain space.