Coinbase Wallet users now have the ability to send instant messages to each other using their Ethereum identities, as announced in a Coinbase blog post on July 12. This new feature utilizes the Extensible Message Transfer Protocol (XMTP), which is an instant message ing system built on blockchain addresses. XMTP is also utilized by the decentralized social media network Lens.
According to Coinbase, some wallet users can already send messages to others using their cb.id, .eth, or Lens usernames. Initially, the feature will be available to those who scan a QR code in a blog post or possess a Lens profile, with access expanding to all users in the future. The messages are end-to-end encrypted to ensure privacy, and users have the ability to block addresses they do not wish to receive messages from.
Coinbase stated that one of the motivations behind introducing this feature is to combat fraud within the cryptocurrency community. By enabling direct messaging between wallet address owners, users no longer need to rely on separate platforms where the recipient's Web3 identity may not be verified. This can mitigate unnecessary risk and potential loss.
Currently, popular chat applications for cryptocurrency users include Twitter, Discord, and Telegram, which do not provide options to verify Web3 identities. Coinbase believes that utilizing XMTP for messaging helps to reduce centralization. If Coinbase discontinues its wallet services or ceases to exist, users will still be able to maintain their XMTP chat histories and access them through other XMTP apps like Luster or OrbApp. Coinbase aims to ensure seamless connectivity by automatically transferring chats.
According to XMTP's documentation, the messaging protocol operates on a network fully owned by its developer, XMTP Labs. However, the company is working towards gradually decentralizing the network. XMTP co-founder Shane Mac emphasized the value of decentralization, clarifying that XMTP is not a social media or instant messaging application itself but rather a protocol that can be utilized by apps like Coinbase Wallet and Lens. This approach allows users to choose the apps they prefer without sacrificing their identity or chat history when switching.
Coinbase Wallet's integration of Web3 usernames aligns with the growing movement towards their adoption. The company offered free cb.id usernames to all users, leading to a surge in sign-ups. Web3 usernames enable users to send cryptocurrencies to human-readable names instead of relying on long strings of encrypted addresses.
