1.1 What problem does Coinbase Wallet solve?

In Web3, users must:

• Prove their identity without usernames or passwords.

• Securely store their private keys — the only way to control their blockchain assets.

• Interact directly with Decentralized Application (dApps), like Uniswap, OpenSea, or DeFi protocols.

• Sign transactions to interact with smart contracts.

• Do all of the above across multiple blockchains, without relying on centralized custody.

1.1.1 Without a wallet

1.1.2 With Coinbase Wallet

1.1.3 Summary of Need

Coinbase Wallet provides a secure, user-friendly, and decentralized way to manage crypto identities, sign transactions, and connect to the Web3 ecosystem across multiple chains — without relying on central servers or custodians.

2. Requirements

2.1 Functional Requirements

• Connect to and authenticate with dApps

• View and manage assets

• Sign and send transactions

• Interact with smart contracts (e.g., Uniswap, OpenSea)

• Support token standards (ERC-20, 721, 1155)

2.2 Security Requirements

• Private keys must never leave the device

• Signing operations must be explicit and user-approved

• Secure enclave or keystore usage on mobile

2.3 Interface Requirements

• Intuitive UI for wallet management

• Web3 provider injection or WalletConnect support

• Responsive design (mobile + desktop)

2.4 Constraints

• Must support multiple chains

• Must remain compatible with major dApps

• Performance should not degrade with large NFT/token portfolios

3. Architecture & Design

3.1 High-Level Diagram

graph TD
    User["User Interface (Browser/Mobile)"]
    Wallet["Coinbase Wallet"]
    KeyStore["Local Key Storage"]
    Signer["Transaction Signer"]
    dApp["Web3 dApp (e.g., Uniswap)"]
    WalletConnect["WalletConnect / Injected Provider"]
    Chain["Blockchain Network (Ethereum/Base)"]
    Contract["Smart Contract"]
    API["Coinbase APIs (optional)"]

    User --> Wallet
    Wallet --> KeyStore
    Wallet --> Signer
    Wallet --> WalletConnect
    Wallet --> API
    WalletConnect --> dApp
    dApp --> Chain
    Signer --> Chain
    Chain --> Contract

3.2 Components

• UI: React web app / native mobile UI

• Key Management: LocalStorage (desktop), Secure Enclave (iOS), Android Keystore

• Signing: User approves tx; wallet signs with private key

• dApp Connection: via Injected Web3 provider or WalletConnect

• Blockchain Communication: JSON-RPC over HTTPS

• Optional APIs: Price data, token info, fiat onramps

4. Implementation

4.1 Technologies

4.2 Smart Contract Interaction

• ABI defines contract functions

• Wallet builds tx → signs locally → sends via provider

• Blockchain executes and stores results immutably

5. Integration

5.1 Flows

6. Verification & Validation

6.1 What We Test

7. Deployment & Operations

7.1 Channels

• Mobile app via App Store / Google Play

• Browser extension via Chrome Web Store

• APIs hosted by Coinbase (optional)

7.2 On-Chain Deployment

• Contracts are public

• Users broadcast signed tx to interact

8. Key Takeaways

8.1 Identity

• Your wallet address is your identity

• Login = signature, not password

8.2 Control

• You hold the keys

• No Coinbase employee can access your wallet

8.3 Web3-Ready

• Plug in to DeFi, NFT, DAOs, etc.

• All actions require user approval

9. Authentication Flow (Explained)

9.1 Diagram

sequenceDiagram
    participant You as You
    participant Wallet as Coinbase Wallet
    participant dApp as dApp (e.g. Uniswap)
    participant SmartContract as Smart Contract on Blockchain

    You->>Wallet: Open wallet and connect to dApp
    dApp->>Wallet: Request your public address
    Wallet->>dApp: Send public address (e.g., 0xABC123)
    dApp->>Wallet: "Please sign this message to verify you"
    Wallet->>You: Ask permission to sign (no private key exposed)
    You->>Wallet: Approve signing
    Wallet->>dApp: Send signed message
    dApp->>dApp: Verify signature using public key
    dApp->>You: You're authenticated 🎉
    You->>SmartContract: Interact with the contract (e.g., swap tokens)
    SmartContract->>You: Complete transaction

9.2 Table Breakdown

10. Security Reminders

• Private key stays only in the wallet (not exposed)

• Every action requires explicit approval

• dApps never see your private key