According to Forbes, the cryptocurrency bull market at the end of 2017 made Coinbase a household name. If an encryption novice chooses to buy cryptocurrency last year, it is very likely that he is completing the transaction on the Coinbase platform.
Data confirms this: Coinbase Brian CEO Armstrong said last week that the company in 2017 increasing by day 5 million customers. In addition, according to the Washington Post 2018 Nian 5 report month, Coinbase currently has more than 2000 million accounts, more than Fidelity Investments and Charles Schwab and other long-standing industry giants. This growth rate, coupled with its new focus on institutional hosting and other services, has made Coinbase one of the few “ structured ” companies in the entire encryption industry.
However, while people’s attention is focused on their trading and investment activities, Coinbase has been quietly working on another key initiative that may be more important. 2017 Nian 4 Yue Coinbase announced that the company has developed a browser and mobile wallet Toshi. This wallet includes a powerful identity component program and a reputation system for individual users.
All of these developments follow Brian Armstrong’s ” master plan ” in the blueprint put forward the plan at maturity will be completed and distributed open local financial system. The first step is to create an open protocol layer, such as Bitcoin and Ethereum, and the second step is to set up an exchange so that consumers and institutions can easily access the cryptocurrency. The third step is a browser with a friendly user interface. The final challenge is to create distributed applications that will replicate many of the services currently in use (loans, identity management, remittances, merchant processing, etc.).
In the last week, Coinbase released some important news about their identity program, announced that it acquired the Distributed Systems ( Distributed Systems team behind), the company focused on identity-based blockchain systems and distributed applications integrated. Coinbase will merge the team into its ongoing identity program. Some of them join the Mobile Wallet team, and others will try to build a ” Log in with Coinbase ” feature for their browsers. If successful, it will allow users to easily authenticate on the Ethereum blockchain. ,
This is like a service such as ” Log in to Google” or “Facebook Connect .” But if this service does not exist, users will be forced to maintain different usernames and passwords for each service provider that the individual participates in. While this approach may have some security advantages, overall it limits the usability because the system does not fully understand user attributes, preferences, and data. This information is critical to providing a personally unique and customized experience online.
However, in this case, GAFA (Google, Amazon, Facebook, and Apple) created an oligopoly around the personal data economy, so that once a user registers, it is difficult to leave.
This is where the blockchain can enter. The ” Login using Coinbase ” feature gives users the potential to implement a state called self-sovereign identity. In this case, users can create and manage their own identities, private keys and attributes so they can interact with the application according to their own requirements. In addition, these self-sovereign identities can be used to collect key attributes of a verified provider that can verify whether an individual is of a specific age without disclosing other information.
This situation has the potential to subvert the way we interact with the Internet today. In other words, how Coinbase builds this product and commercializes it will be fun. Whether accidental or intentional, Coinbase has become a ubiquitous centralized encryption service provider, and they are obligated to create value for investors.