Tap and Pay crypto coming to Coinbase Wallet, L2 interoperability in months

As a seasoned analyst with over two decades of experience in finance and technology, I find the recent announcement by Coinbase Wallet about their upcoming “Tap to Pay” crypto solution quite intriguing. Having witnessed the rise and evolution of digital payment systems like Cash App, Venmo, PayPal, and others, I can see the potential impact this move could have on the market.

In the near future, Coinbase Wallet plans to introduce a “Tap to Pay” cryptocurrency option as a competitive move against services like Cash App, Venmo, PayPal, and others who specialize in quick transactions.

In an exclusive conversation with CryptoMoon, Jesse Pollak – the head of the Coinbase Wallet and co-founder of Base – unveiled that the non-custodial cryptocurrency wallet’s new feature is currently being tested internally (in alpha phase). The final release of this feature is expected to be made available to users shortly.

He stated during the DevCon conference in Bangkok on November 13th that ‘Tap to pay’ will likely become very significant, especially for smaller merchants who might currently rely on Cash App, Venmo, or PayPal as their payment methods.

“We can give them a better, faster, more global tap-to-pay experience that will work in every country around the world. I think it’s pretty huge.”

By the year 2025, the architect behind Ethereum Layer 2 Base anticipates that as many as 50 nations will be connected to Coinbase Wallet.

A significant aspect of the integration includes linking personal bank accounts with the Coinbase Wallet, as pointed out by Pollak.

“We want people to be moving their saving, their spending, their investing onchain, because it’s going to give better rates, better interest, better economic outcomes, better outcomes for merchants because it’s a faster, better, cheaper, more global economy that works for everyone.”

Users will have the option to withdraw funds into stablecoins such as USD Coin (USDC) or Tether (USDT), which can then be exchanged for their native currency, according to Pollak’s statement. This process enables users to receive payments in a stable digital format.

As long as circular economies for stablecoins are still relatively modest, Pollak anticipates a swift change when merchants become familiar with utilizing these digital currencies for less expensive transactions.

Base close to solving the layer 2 interoperability problem

According to Pollak’s statement, Base aims to tackle the layer 2 interoperability issue faced by Ethereum within the coming six months.

Although multiple cross-chain solutions link Ethereum’s main network with its layer 2 systems, Base and other Ethereum layer 2 platforms are still divided or segregated.

However, Pollak indicates that the problem is swiftly being addressed by implementing two crucial specifications. Firstly, ERC-7683, a standard for interoperable crosschain transfers across different blockchains, and secondly, RIP-7755, which allows for trustless execution between these chains.

Pollak explained that they are collaborating to create a universal wallet. This means it will function seamlessly on every layer 2 (L2). Instead of dealing with multiple, disjointed L2 systems, you’ll simply use this wallet to transact anywhere.

“I think we’ll get those dialed in in the next six months.”

A workable approach will facilitate the transfer of tokens from Base to other Ethereum layer 2 platforms such as Arbitrum One, Optimistic Mainnet, and Blast, thereby expanding the range of applications within an ecosystem that safeguards over $42 billion in value, according to L2BEAT data.

Afterward, Base is planned to be extended across all other Layer 1 networks, allowing users to store their assets in Base and conduct transactions anywhere, as stated by Pollak.

2024-11-14 03:59

Base close to solving the layer 2 interoperability problem

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