Coinbase Takes Telegram & Venmo Head-on
Wallet to Wallet Messaging
GM DOers! 😎
Get ready to start GMing onchain. ⛓️
Coinbase Wallet just integrated with XMTP to allow for wallet-to-wallet messaging, allowing any two Ethereum addresses to chat with each other onchain. 🗣️
We all talk about the need for better UX in web3. Well, this might just be the biggest UX improvement of 2023! 🥳
Don’t worry! XMTP isn’t just another useless crypto acronym. 🙄 It’s actually a big deal – and something we needed for a long time.
Context: XMTP is a messaging protocol that enables chats to be interoperable between any app or wallet in the world. This gives the ability to have the same DMs across all apps, rather than separate.🌐
To better visualize it, take Telegram and WhatsApp as an example. These are 2 different messaging services that are closed. 🔒
That means that your chats from Telegram can’t be transferred to WhatsApp and vice versa. That’s something that XMTP solves – if both Telegram and WhatsApp are connected to it.
Imagine only having one inbox for all your conversations?! 🤯
But why would Coinbase Wallet integrate something like this? Why does a wallet need messaging? And how does this make Coinbase become a direct competitor with both Venmo and Telegram? 🤔
I know, it might sound very confusing 🥴 but we’re here to help you stay ahead of the curve and participate confidently in web3.
Let’s get it 👇
👉 Lens Protocol: The Future of Social Media
Decentralized social media finally allows creators to own their content, data and followers. That’s why we choose to build part of our media platform on Lens Protocol.
The Benefits of XMTP
There are several benefits that XMTP brings to the web3 table. Some of these are:
Chat portability across apps 🌐
Ownership of your chat data 🔐
Direct notifications to wallets 🔔
Payments in chat 🤑
Let’s go through them one by one & see how they tie into Coinbase Wallet’s vision. 👀
Chat Portability Across Apps 🌐
Today’s story isn’t really about Coinbase launching a new product – it’s about them integrating into an existing protocol.
And they’re not the only ones who did this. Lens Protocol integrated with XMTP this week too.
Why does this matter?
Because both Lens and Coinbase Wallet now use the same underlying messaging protocol, which allows users to use either app to chat with their friends.
No more talking to another person, simultaneously, on different apps, which happens to me all the time. 😅
With XMTP, you can continue your conversation with your frens regardless of the app you’re using. Your conversations will be synchronized across all apps. ♻️
Our community gets it already. 😉
Ownership of Your Chat Data 🔐
Currently, when you use chat apps like WhatsApp, Instagram, or Twitter, your data is stored and controlled by these platforms.
This poses risks like potential data sale, hacking, or data deletion if you stop using the service. 🚩🚩🚩
However, with XMTP, you're the boss of your data. Your chat history is directly linked to your wallet, putting you in the driver's seat.
Only when you give permission can an app access your chat history. 🔑
And you can revoke this permission at any time, leaving the app with no access to your data – remember the portability feature we talked about above. 👆
Lastly, add in the future usage of zk proofs, and we’re looking at a setup where an app can interact with your data while being blind to your identity – true privacy. 🤩
The web3 features of ownership and interoperability embedded into a messaging app puts Coinbase head-to-head with Telegram, WhatsApp and all other messaging apps.
But this is only scratching the surface, so let’s dig deeper. ⏬
Get The Lowdown on XMTP
Keep reading as we explain the benefits that XMTP provides.
However, if you still don’t get it, we recommend you go back & listen to our conversation with XMTP’s Co-Founder, Matt Galligan.
It’s an eye-opener. Watch/listen on your favorite podcast platform 👇
Onchain Notifications 📲
Apps linked to XMTP can deliver wallet notifications (subject to your approval).
OpenSea could alert you when your favored NFT hits a specific floor price
Aave could inform you when your DeFi loan is nearing expiration
Paragraph could notify you when your favorite newsletter has a fresh post
Note that these examples are hypothetical as they would require these apps to integrate XMTP.
With Coinbase Wallet integrating this, all of the notifications above could be received in a single app.
But won't that open the floodgates to spam? 🌊
To manage potential spam, Coinbase Wallet gives you control over your inbox, allowing you to approve or block messages.
Plus, you can peek at other users' wallet profiles for a quick info-check before engaging.
It’s a safety measure not possible in web2, creating a more seamless web3 UX. 👍🔒
Now, the biggest unlock… payments!
Payments in Chat 💱
Just like Venmo or Revolut (or other neo-banks) where you can exchange messages and money within the app, Coinbase wallet now offers the same functionality.
Users can now communicate via their onchain identities (their wallet or .ens or .lens) and instantly send money (like USDC) without incurring any gas fees.
The gas fees are $0 because all of this takes place on Polygon, with Coinbase covering the gas as it's incredibly cheap. ⛽
So, what sets this apart from Revolut or Venmo?
For starters, you own your funds! No more relying on a bank to keep your funds safe.
You take your own custody of your money by keeping your Coinbase Wallet seed phrase safe. 🔐
Second of all, safer transactions. For the first time ever, you can say goodbye to sending a small sum of money to confirm someone’s phone number, Revolut handle, or wallet address.
Now, there's no room for errors as a person's social profile is aligned with their wallet, thus eliminating unnecessary risks and potential losses. 👥
Imagine sending money to a friend using their Instagram handle. 🤯 HUGE! 🚀
It’s time to start saying goodbye to splitting dinners using Venmo. We now have an app that’s much better for that. 😉
But how can you start using it? Read on! 👇
🤝 Thanks to our trusted partner, Whag.
Web3 users lose billions of dollars every year due to phishing attacks. Luckily, Whag uses verifiable links so you can rest easy, knowing that every link you click on is safe.
Just click below to see for yourself. The first 1000 users that sign up and use the code “free1000” get free access FOR LIFE.
Getting Started With Coinbase Wallet
Currently, this exciting feature is available to a limited group – those with a .lens account (including most of our PROs) and those who've scanned a private QR code.
If you fall into one of these categories, follow these steps to get started:
Grab Coinbase Wallet from the App Store 📲
Set up your wallet by importing an existing one or creating a new one 🏦
Ensure that your .lens handle is held in the wallet you've set up
Notice the new inbox icon at the top right 📥
Tap on it & start enjoying the benefits of onchain chats in Coinbase Wallet! 🗨️
How Can You Capitalize? 💰 PRO Advice For Investors And Builders ⚒️
Before I go into the PRO Advice, I must say that as part of the web3 community, it's our job to drive adoption.
There's no better time to do that than now when we have a web3 feature that outclasses its web2 counterparts. 🔥
I'm personally going all-in on this feature and nudging my friends to do the same. 👫 If they're hooked, we know Coinbase nailed it. If not, it's back to the drawing board for us.
Only by showcasing the benefits can we onboard the masses. Reply with a YES/NO to this email and let me know if you’ll show this feature to your friends.
Now, how can builders and investors capitalize on this opportunity? The following alpha is for PROs only. Enjoy.