Coinbase Exchange Adds Support For Ledger Hardware Wallets

Time Stamp: February 23, 2022 10:39 AM
Source Node: 1184803

Coinbase exchange adds support for the Ledger hardware wallets which means it is enhancing its security through an integration with the wallets so let’s read more in today’s latest Coinbase news.

Coinbase is the largest exchange in the US in terms of tradign volume and it announced that it will support Ledger as a popular crypto hardware wallet. The new integration is available via the coinbase wallet browser extension and will provide users with an additional layer of security.

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The move came at a time when the adoption of NFTs and DEFI is gaining momentum. The vice-president of Ledger Charles Hamel said:

“There’s no future in Web3 without security at the start of the consumer journey. With billions of transactions happening every month, no matter what or why you trade and hold, we believe every user deserves world-leading security and ease-of-use. Coinbase and Ledger partnering enhances this for crypto and NFT communities.”

Hardware wallets are physical devices designed to store the users’ private keys offline rather than keeping them online in hot wallets like the ones offered by centralized exchanges. The private keys are a critical piece of information required to authorize transactions on the blockchain network like BTC or ETH but when stored online, they can become susceptible to theft and hacks. Back in 2016 with the Bitfinex hack, we saw exactly that which was a notorious security incident in the history of the crypto industry that resulted in losing 120,000 BTC and it happened via a vulnerability in the exchange’s hot wallets. Coinbase said:

“We want to empower everyone to use dapps and access Web3, and that requires building the easiest-to-use and most accessible self-custody wallet in the ecosystem.”

Now, Coinbase exchange adds support for Ledger and it said that every transaction on the blockchain requires both the users’ public and private keys while the hardware wallet will ensure that only the user that holds the device is able to complete the transaction, as Adam Zadikoff who is a senior product manager at the exchange said:

“Using a hardware wallet is a lot like using two-factor authentication to secure a website login, but instead of a six-digit code that is sent as an SMS or generated in an authenticator app, your hardware wallet is used to physically confirm transactions with the press of a button.”

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Coinbase announced the new partnership with Ledger back in December as it launched a co-branded crypto debit card and the initiative was a part of the push by the Paris-based company to become a physical device maker and a crypto platform that will revolve around the software known as Ledger Live:

“In the same way as the iPhone is a platform for Web2, Ledger is for Web3.”

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