Coinbase has announced that it will support cryptocurrency hardware wallets, starting with Ledger. The two companies announced this during the ‘Ledger Open Conference, which took place from 9 to 10 December 2021.
Ledger is a company that supplies cryptocurrency hardware wallets like Ledger Nano S and Ledger Nano X. The wallet allows users to store private keys offline. Therefore, users with the Coinbase Wallet browser extension will be able to connect to the Ledger wallets, thus maintaining complete control over assets stored while at the same time retaining custody.
Hardware wallets are more secure than online hot wallets; therefore, the partnership will roll out in phases during the first quarter of 2022. Later on, Coinbase mobile application will also support Ledger’s hardware wallets.
The Vice President of Coinbase, Max Branzburg, said the crypto platform is excited to share more announcements on making Coinbase Wallet the safest and most secure wallet to use for Web3 applications.
Alesa Haas, Coinbase’s Chief Financial Officer, stated that nearly 50% of Coinbase users use cryptocurrency for many reasons other than trading. Coinbase users also store more than 12% of 150 types of each cryptocurrency. Therefore, the platform shifts from a simple coin swap to a utility phase.
Within the past year, Coinbase began expanding its product line by capturing users who want to do more with their crypto coins other than simply staking them. In November this year, 2021, Coinabase released a browser extension wallet. Adding a hardware wallet is another step up.
The Ledger Open Conference
The Ledger Open Conference is a conference for web3 innovators for the digital asset ecosystem. The event hosts developers from every area of the cryptocurrency field with a focus on User-Experience (UX). The conference helps developers examine the current set of products and services, positives, the most innovative, possible solutions, and even encourage or initiate partnerships to fix the solutions. The conference helped to initiate the Ledger and Coinbase partnership in making the cryptocurrency platforms more secure.
Importance of Hardware Wallets
Hardware Wallets are the most secure form of cryptocurrency wallets. The wallets store private keys offline, and users can access cryptocurrency accounts on platforms only when there is a need, unlike hot wallets that are always online.
It is difficult to compromise a hardware wallet. The benefit of a hardware wallet is that it gives an extra layer of protection against malware, cyber attacks, and phishing sites. Viruses do not affect the wallet either.
Coinbase choosing to partner with Ledger and adopt hardware wallets is a big move for the cryptocurrency industry. Recently, there has been a lot of compromise of online hot wallets; therefore, it is wise for cryptocurrency platforms and exchanges to encourage users to use more secure forms of storing cryptocurrency.