Coinbase Launches Base Super App Aiming to Integrate Payments, AI, and Social Network

Coinbase, a prominent player in the cryptocurrency industry, has unveiled a new super app called Base. This app, introduced at a well-orchestrated event in Los Angeles, aims to integrate a variety of services, including payments, AI agents, and a social network, all within a single platform. Unlike previous blockchain-based alternatives that were often cumbersome and limited to crypto enthusiasts, Base is designed to be user-friendly and accessible to a broader audience. The app features a familiar interface and allows users to add funds, including the popular USDC stablecoin, using Apple Pay, eliminating the need for a traditional crypto wallet.

Base is essentially a rebrand of Coinbase’s existing Coinbase Wallet, but with significant improvements in usability and branding. The new app addresses the confusion users previously faced between the core Coinbase app, used for buying and selling crypto, and the Coinbase Wallet. This streamlined approach is expected to enhance user experience and attract a wider user base.

While the app is currently available only to those on a waitlist, its features suggest that it could bring the promise of Web3 into everyday reality. Web3, often touted as an alternative to traditional web services, aims to give users control over their personal data through decentralized blockchain technology. Base’s portable identity feature allows users to log in across various platforms, similar to how Facebook or Google IDs are used, but with the added benefit of data control.

Coinbase’s executive Jesse Pollak acknowledges that the crypto industry has yet to provide a compelling reason for the public to adopt blockchain-based IDs. However, he believes that by making Base a valuable part of consumers’ daily online lives, the app can offer the same utility as Big Tech identity tools. Pollak also notes that advancements in government-issued IDs, such as smart driver’s licenses and passports with NFC chips, could pave the way for more mainstream use of blockchain-based identities.

The launch of Base is a significant investment for Coinbase, both in terms of development and marketing. The company hopes that the app will achieve viral growth, potentially becoming a new revenue stream. One opportunity lies in increasing exposure to Bitcoin and other cryptocurrencies, driving more trading revenue. Another, more substantial opportunity is the promotion of the USDC stablecoin as a peer-to-peer payment vehicle and a currency for online shopping. Coinbase’s partnership with Shopify, whose CEO sits on Coinbase’s board, indicates a strong push in this direction.

Coinbase is offering incentives for users of Base Pay, including 1% cashback for USDC purchases. If Base Pay and other USDC uses gain traction, it will directly benefit Coinbase’s earnings, as the company earns a share of the interest from USDC reserves. This interest has already contributed significantly to Coinbase’s quarterly earnings, and increased adoption of USDC could further boost this income stream.

Despite the potential, the success of Base remains uncertain. Coinbase must convince users to adopt the app and ensure that it remains a level playing field for developers. The company’s decentralized blockchain architecture is designed to prevent favoritism, but there are concerns about whether Coinbase can maintain this neutrality. Nevertheless, Coinbase’s ability to innovate, even as a large public company, is evident in the launch of Base. CEO Brian Armstrong’s efforts to preserve a frontier-style mentality and elevate other founders to the C-suite suggest that the company is committed to continued innovation.

If Base achieves its ambitious goals, Coinbase could become a significant force in the tech and financial landscape, not just in the crypto industry. The app’s potential to integrate various services and offer a user-friendly experience positions it as a game-changer, with the possibility of becoming a serious money maker for Coinbase.