Coinbase Cloud rolls out new Web3 platform for developers

Cryptocurrency exchange Coinbase’s blockchain infrastructure platform Coinbase Cloud has rolled out a Web3 platform for developers, Node, allowing users to build new decentralised applications free of charge.  

"The new platform will allow users to create and monitor Web3 applications while accessing the Ethereum blockchain and indexers to speed up responses," the company said in its official blog. 

"Initially, Node will support Ethereum, with other blockchains set to follow," Luv Kothari, Group Product Manager, Coinbase Cloud said, adding that it will use backend infrastructure from Bison Trails, a blockchain infrastructure company that Coinbase acquired in 2021. 

Node is a revamp of its previous Query & Transact (QT) platform that offers a node service accessible free of cost to developers. Founded in 2020, the platform has serviced enterprise customers dedicated blockchain nodes that are managed on 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 Coinbase initially intended to be the 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 that once consisted primarily of transaction fees.  

Currently, the platform has been rebranded to Node to let both open source and enterprise developers 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 for the creation of decentralised 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, trading and data infrastructure. 

During Coinbase’s Q2 analyst call last month, CEO Brian Armstrong said that the company believes that "Coinbase Cloud will gain traction with developers". 

Meanwhile, Coinbase reported losses of $1.1 billion following the recent crypto market downturn that saw its stock plummet almost three quarters since the beginning of this year.  

The company recently launched a staking service to combat declining trading revenue, with plans for a prime brokerage offering and a self-custodial wallet. Armstrong added that the company hopes its subscription services revenue, which accounted for 18% of its overall revenue, will grow to 50%. 

Web3 refers to a "decentralised online ecosystem based on blockchain” that has become an all-encompassing buzzword and is often described as the ‘future version of the internet’. 

Despite apprehensions from developers, venture capitalists and investors, being a nascent concept, in 2023, the Web 3 blockchain technology sector is predicted to be worth more than six trillion dollars, according to analyst firm Market Research Future, and Web3 will continue to grow at a CAGR of 44.6% from 2023 to 2030.