When Emilie Choi By joining Coinbase, a seasoned strategist with a background in acquiring companies for LinkedIn brings expertise to bolster Coinbase's growth through strategic mergers and acquisitions. Coinbase just picked up The five-member team from Distributed Systems has ambitions for their 'Login' platform to become a significant player in the online payments industry.
A glimpse of the Distributed Systems Team as documented in an image gallery. TechCrunch
As per CEO Nikhil Srinivasan, Distributed Systems had conversations with major players like Facebook, Robinhood, and Binance before eventually aligning with Coinbase to build the new Login platform.
Still in fledgling stages, the Login initiative, as reported by TechCrunch, aims to facilitate easier access to decentralized applications by simplifying users' crypto wallet connections. Nikhil Srinivasan hints at a larger potential, rhetorically questioning how rich identity data could unlock groundbreaking applications.
Coinbase is Going Big
Coinbase is clearly gearing up for a significant stake in the digital arena. Senior members, Srinivasan and co-founder Alex Kern, are set to lead a 'decentralized identity team,' using Coinbase's vast KYC database from its 20 million customers as a building block for the Login platform.
Coinbase is likely aiming to build a revolutionary online payments solution that could integrate with current banking systems, leveraging reliable KYC data to break down regulatory barriers that separate crypto from traditional banking. If successful, it could rival Visa’s grip on the market.
A KYC Nexus?
Utilization of robust KYC data is critical for cryptocurrency users to connect seamlessly with the banking world. However, KYC information is highly sensitive, making any leading platform for online identity verification a potential cybersecurity target.
Coinbase will face fierce competition from much larger corporations in their quest to dominate online payments, including giants like Facebook. David Marcus just left A Coinbase board member decided to step back to prevent conflicts of interest, highlighting an impending race to establish a viable online payment solution—where only a singular victor might emerge.
Despite recent data privacy controversies, Facebook remains a robust global entity with name recognition, which can repel challenges through existing services that could be adapted for micropayments, though their data privacy handling remains a stumbling block.
Social Crypto Could go Global, or Not
Amidst the buzz, it's crucial to remember that cryptocurrencies like Bitcoin have been thriving for years as a decentralized exchange medium without the need for ID checks or intermediaries.
A messaging platform could play a pivotal role in boosting crypto adoption, offering an alternative to major corporate-led commercial ventures currently dominating the space.
The platform that Facebook could be developing This envisioned platform might take on aspects of Amazon Prime integrated with PayPal, though whether it lures current crypto users remains speculative. Moreover, Visa users may not switch suddenly just because tech giants like Coinbase and Facebook are investing heavily in a new platform.
Cryptocurrencies' allure lies largely in their independence from big corporates and established financial systems. If a new payment solution is corralled into the conventional finance landscape under a corporate giant's control, it may not resonate as anticipated by its developers.
