Coinbase, one of the world’s first cryptocurrency trading platforms, made two important announcements.
- The Californian company takes over the startup Distributed Systems to develop an “open identity” system.
- They decided to rename their previous Toshi wallet the “Coinbase Wallet“.
Coinbase acquires Distributed Systems
The appetite of Coinbase seems insatiable. The US platform recently announced the acquisition of Distributed Systems Inc., a San Francisco-based startup. The five members of the team join the cryptocurrencies company to help him integrate a decentralized identity verification solution.
Prior to this takeover, Distributed Systems works on the development of “open identity” standards for decentralized application users (dApps).
According to B. Byrne, product manager of the Identity Department at Coinbase, “decentralized identity systems represent a disruption in the relationship we have with technology.” He believes that as the democratization of cryptocurrencies progresses, many issues of anonymity and confidentiality will have to be addressed. He believes that blockchain technology must provide secure access to “experiments that require trust.”
The leader touted the benefits of a decentralized identity, which could circumvent the risks associated with the replication of personal data.
“The systems of decentralized identity will allow you to prove that you are indeed holder of an identity, or that you maintain this or that relation with Social Security, without having to make a copy of this identity”, he declared. “If you have a little imagination, you can think of applications for photos, social networking posts, and maybe even passports one day.”
Goodbye Toshi, Hello Coinbase Wallet
The Californian trading platform has also announced the rebranding of Toshi, which takes the name of Coinbase Wallet (see here other Wallets)
This service, presented as the simplest and most secure crypto-wallet. Moreover it allows you to manage the ERC-20 tokens, to receive airdrops or to store crypto-collectibles (non-fungible tokens).
According to Coinbase, this name change is part of its intention to invest in products that will define the future of the decentralized web. And indeed make this future accessible to all.
For Siddharth Coelho-Prabhu, the manager of the Wallet division at Coinbase, this service will be a gateway to a decentralized financial system. He said the California firm hoped to “accelerate the adoption of crypto-currencies and dApps around the world.”
Coinbase as a crypto-Empire
Brian Armstrong, the CEO and founder of Coinbase, is extremely ambitious.
He had published last summer a Medium article in which he presented the strategy of expansion of his company. In order to propose “an open financial system for the whole world”, the leader had mentioned four main tracks:
- the development of Coinbase Consumer, its service for savers
- the development of Coinbase Pro (formerly GDAX), the platform used by professional traders and institutional investors
- the creation of Toshi, to facilitate the use of digital currencies as payment methods by consumers and help developers elaborating the necessary applications
- exploration of new ideas in the crypto sphere, particularly in the areas of transaction processing, transfers, loans, fundraising, venture capital, receivership and of the credit score
For some observers, Brian Armstrong would be building a “crypto-empire”. His latest initiatives include the installation of new offices in Japan, the hiring of a chief compliance officer. In addition, the purchase of several crypto-startups. And also the addition of new crypto-assets or the obtaining of new crypto-assets. The green light of the authorities to reference the corners considered as genuine financial securities.
A few days ago, Coinbase CEO told Bloomberg that his company had registered 50,000 registrations every single day in 2017. That is more than 18 million customers over the year.