8-11-2023 (NEW YORK) Leading cryptocurrency exchange Binance has introduced a new Web3 wallet designed to facilitate seamless engagement with the decentralized finance (DeFi) ecosystem. The announcement came during the Binance Blockchain Week conference held in Istanbul. This innovative product is compatible with 30 different blockchain networks, offering users a wide range of options.
According to Binance CEO Changpeng ‘CZ’ Zhao, Web3 wallets offer much more than just a means of storing digital assets. They serve as a fundamental component of the Web3 framework, empowering individuals with self-sovereign financial capabilities. By leveraging this new wallet, users can actively participate in the evolving landscape of DeFi.
Binance’s Web3 wallet will enter a competitive market, directly challenging established players such as MetaMask and Trust Wallet. Notably, Binance acquired Trust Wallet back in 2018. In a recent move, Binance listed a futures market for TrustWallet’s native token (TWT), causing a 7% drop in its price within 24 hours.
Centralized exchanges like Coinbase and OKX have also introduced their own Web3 wallets, highlighting the growing demand for seamless DeFi interactions within the cryptocurrency community.
Creating a wallet through Binance’s mobile app will not only enable users to store their digital assets securely but will also serve as a platform for engaging in various DeFi activities such as staking, lending, and borrowing. However, it remains unclear whether users will need to undergo a know-your-customer (KYC) procedure to create a wallet.
Web3 wallets have historically been attractive targets for hackers and malicious actors due to the potential to access private keys and drain funds irreversibly. In an effort to enhance security without compromising user experience, Binance aims to implement multi-party computation (MPC) technology. This approach eliminates the need for users to memorize seed phrases while maintaining the benefits of robust security and self-custody. MPC involves splitting a private key into three parts, known as key shares, with the wallet owner retaining control over two of these key shares.
CZ emphasized that Binance’s primary objective is to provide users with a user-friendly and protected environment for exploring the potential of Web3. By prioritizing security measures and offering seamless integration with the DeFi ecosystem, Binance aims to empower users and foster wider adoption of decentralized finance.
