The new plan is to make cryptocurrencies to work as the Facebook Connect.
Coinbase is a digital currency exchange company that came into limelight with its fiat currency in about 32 countries and bitcoin transactions and storage in around 190 countries. Now, the company is leaving no stone unturned to make the most out of Cryptocurrencies.
In a new initiative, the Coinbase is planning to roll out something of “Login with Coinbase” sort. It will help the user to log in easily into their crypto wallets and going forward on this idea; the company announced its acquisition of Distributed Systems, a company that operates a central hub for all product marketing data. However, the financial terms of the deal weren’t disclosed by either of the companies. This piece of information was first brought up by the TechCrunch.
According to the report, the new idea strikes similar to that of Facebook Connect, in which, a single sign-on allows the user to interact on other websites through their Facebook account. through such an application, the websites gain access to the user’s contact list and show the user’s friends who have also visited it from the same platform.
The Distributed Systems has experience in building dApps or decentralized apps, known as Clear Protocol. The company team is all set to merge with the digital currency exchange company, with three of its members attached to Coinbase’s Toshi decentralized mobile browser team, and its founder and co-founder, Nikhil Srinivasan and Alex Kern working on a decentralized identity team that will directly work on the new product. Apart from being the founder of the Distributed Systems, Nikhil Srinivasan was also the CEO of his company.
Coinbase will connect the new program with its existing “know your customer” anti-money laundering data that includes about 20 million customers. As per Srinivasan, the goal is to figure out. He said, “How can we allow that really rich identity data to enable a new class of applications?”
Led by Floodgate, the Distributed Systems was able to raise $1.7 million seed last year, and the company had planned to raise another $4 million to $8 million round this summer. Srinivasan added, “No one really understood what we’re building,” and it wanted a partner with KYC data. It began talking to Coinbase Ventures about an investment, but after they saw Distributed Systems’ progress and vision, “they quickly tried to move to find a way to acquire us.”
With the idea of going big, Distributed Systems was in talking terms with top players in the Blockchain space like “Facebook, or Robinhood, or Binance, or Coinbase.” initially, it was Facebook, Robinhood, and Binance that were dominating, but later on, it turned out to be Coinbase. Srinivasan said, “they were able to convince us they were making big bets, weaving identity across their products.”
Taking the company’s expertise in the Blockchain domain, the company aims to build a decentralized app that will give more control to the user. “Decentralized identity will let you prove that you own identity, or that you have a relationship with the Social Security Administration, without making a copy of that identity,” writes B. Byrne, PM for Identity at Coinbase. “If you stretch your imagination a little further, you can imagine this applying to your photos, social media posts, and maybe one day your passport too.”
Strikingly, the acquisition has already sparked the consideration of Facebook-type login system, and on learning this, the social media giant will also try to infuse something similar to it. Let’s see, what’s more in the coming days.
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