Coinbase Wallet Bolsters Security with Blockaid Integration, Saving Users Millions

Coinbase Wallet, a popular self-custody crypto wallet, has revealed a successful partnership with web3 security firm Blockaid. The five-month integration has yielded impressive results, with Blockaid estimated to have saved Coinbase Wallet users over $75 million from potential theft.

This impressive feat stems from Blockaid’s proactive approach to on-chain security. Through a combination of scanning and analyzing over 114 million transactions and dApp connections, Blockaid successfully thwarted nearly 800,000 wallet connections to malicious decentralized applications (dApps).

“Integrating Blockaid helped evolve and improve on-chain security for our users,” said Chintan Turakhia, Senior Director of Engineering at Coinbase. He further emphasized the importance of a secure user experience, highlighting Blockaid’s support for Ethereum Mainnet and six other EVM chains like Base, Optimism, and Polygon. “Getting security right is critical for bringing one billion people on-chain,” Turakhia concluded, underlining security’s crucial role in mass adoption.

While the $75 million figure represents a conservative estimate, Blockaid’s impact extends beyond Coinbase Wallet. Blockaid co-founder and CTO Raz Niv revealed to The Block that their integration with MetaMask has saved users “hundreds of millions of dollars thus far.” However, specific figures for MetaMask and other clients remain undisclosed.

Blockaid, which emerged from stealth mode last October after securing $33 million in funding, boasts a team with deep security expertise. Co-founders Niv and Ben-Natan previously served in the cybersecurity R&D unit of the Israeli military’s cyber intelligence unit and the Office of the Prime Minister.

Their expertise translates into a suite of security tools that safeguard users against crypto scams, phishing attempts, and malicious hacks.

Coinbase Wallet leverages three core Blockaid APIs to enhance security across various user activities: browsing dApps, interacting with web3 protocols or addresses, and on-chain communication. Backed by prominent players like Sequoia Capital, Ribbit Capital, and Greylock Partners, Blockaid operates from offices in New York and Tel Aviv, positioning itself as a key player in the evolving web3 security landscape.

The success of the Coinbase Wallet and Blockaid partnership underscores the critical role of robust security measures in fostering a safe and trustworthy crypto ecosystem. As user adoption of dApps and DeFi protocols continues to rise, solutions like Blockaid will play a vital role in protecting users’ digital assets and paving the way for a more secure and inclusive future for web3.