September 22, 2022
Cryptocurrency exchange Coinbase’s blockchain infrastructure platform Coinbase Cloud has launched a Web3 platform for developers, Node, which allows users to build new decentralized applications for free.
“The new platform will allow users to build and monitor Web3 applications while accessing the Ethereum blockchain and indexers to speed up responses,” the company said on its official blog.
“Initially, Node will support Ethereum, with more blockchains to follow,” said Luv Kothari, Group Product Manager, Coinbase Cloud, adding that it will use the backend infrastructure of Bison Trails, a blockchain infrastructure company that Coinbase acquired in 2021 .
Node is an overhaul of its earlier Query & Transact (QT) platform, providing a node service that developers can access for free. Founded in 2020, the platform has been servicing dedicated blockchain nodes for enterprise customers, managed on the Coinbase Cloud. The platform is currently used by blockchain companies such as CoinList, Chainalysis and Crypto.com.
For Coinbase, the launch of Node represents a new phase of Coinbase Cloud, a product originally envisioned as Amazon Web Services (AWS) for crypto by providing “crypto computing services.” Coinbase Cloud was also part of the company’s strategy to diversify its revenue streams, which once consisted primarily of transaction fees.
Currently, the platform has been rebranded Node to allow both open-source and enterprise developers to build and monitor their applications from a single platform with up to 120,000 free daily blockchain queries, he said.
While Node also offers a tiered subscription model, the free plan includes access to advanced APIs that allow building decentralized applications and non-fungible token (NFT) applications.
Coinbase Cloud claimed that Node enables faster creation of Web3 applications while reducing both complexity and cost. This feeds into the platform’s broader service offerings, which include all-in-one access to payments, identity, commerce and data infrastructure.
During Coinbase’s Q2 analyst call last month, CEO Brian Armstrong said the company believes “Coinbase Cloud will gain traction among developers.”
Meanwhile, Coinbase reported losses of $1.1 billion following the recent downturn in the crypto market, which has seen shares plunge nearly three-quarters since the start of this year.
The company recently launched a staking service to combat falling trading earnings, with plans for a prime brokerage offering and a self-custodial wallet. Armstrong added that the company hopes its revenue from subscription services, which accounted for 18% of total revenue, will grow to 50%.
Web3 refers to a “blockchain-based decentralized online ecosystem” that has become an all-encompassing buzzword and is often referred to as the “future version of the internet.”
Despite fears from developers, venture capitalists, and investors as it is a nascent concept, according to analyst firm Market Research Future, Web3’s blockchain technology sector is expected to be worth more than $6 trillion by 2023, and Web3 will continue to grow at a CAGR of 44.6% from 2023 to 2030.