Coinbase Wallet Embraces Blockaid Security Tool

Coinbase Wallet, a cryptocurrency wallet operated by Coinbase, has recently integrated the Blockaid security tool to enhance security measures for its users. The integration took place five months ago and has already helped prevent the theft of over $75 million worth of funds, according to a joint report by Coinbase Wallet and Blockaid. The security tool has been successful in detecting and stopping nearly 800,000 connections to malicious decentralized apps (DApps) by analyzing millions of transactions and DApp connections. By examining the proposed transactions at the wallet level, Blockaid was able to calculate the value of the blocked funds, resulting in the estimated $75 million figure.

Blockaid’s CEO, Ido Ben Natan, explained that the $75 million is just the minimum amount of funds saved and that it represents the lower band of detected scams for Coinbase Wallet users. Through the integration, Coinbase Wallet was able to provide a better transaction simulation feature, which allows users to predict the outcome of a transaction before it is broadcasted to the blockchain. This simulation feature helps prevent crypto scams and thefts by anticipating potential consequences of cryptocurrency transactions.

Coinbase uses three Blockaid APIs to enhance security for its users while browsing DApps, transacting with Web3 protocols, or engaging in on-chain messaging. The integration has improved transaction simulations on various chains, including the Ethereum network and six other Ethereum Virtual Machine (EVM) chains. The supported EVM-compatible networks include Base, Optimism, and Polygon.

The joint report highlights that transaction simulations alone are not sufficient to protect users. Validation, the process of determining whether a transaction is malicious, plays a crucial role in providing additional transaction security. Coinbase Wallet users will receive a warning in their confirmation screen if a transaction is deemed malicious.

Coinbase Wallet is not the only wallet implementing Blockaid’s security technology. MetaMask, a major EVM wallet, introduced security alerts with Blockaid in November 2023. In February 2024, MetaMask extended these security alerts to multiple blockchains, including Linea, BNB Smart Chain, Polygon, Arbitrum, Optimism, and Avalanche. The collaboration between Blockaid and these wallets demonstrates the growing focus on enhancing security measures within the cryptocurrency industry.