The New Binance Web3 Wallet
During the Binance Blockchain Week conference in Istanbul, the world’s largest crypto exchange, Binance unveiled its innovative Web3 wallet. According to the platform, all users will soon be able to access this new service via the Binance mobile app.
The purpose of introducing the Web3 wallet, according to Changpeng Zhao, Binance’s CEO, is to simplify cryptocurrency transactions and make them more seamless for users. The Web3 wallet is directly integrated into the main Binance app, primarily used for buying and selling digital currencies.
In addition, multiparty computation (MPC) technology is the foundation of this wallet. By dividing a user’s private keys into three smaller portions, or key shares, MPC aids their protection. The added security precaution helps protect users’ digital assets further.
Binance hopes its Web3 wallet gives customers a simple and safe method to manage their cryptocurrency holdings straight from their mobile devices.
What To Expect
Binance’s Web3 wallet gives users a great deal of security and control. Users will always have control over two of the three key shares, enabling self-custody of their funds.
Furthermore, the Binance CEO highlighted that the Web3 Wallet is a vital link towards DeFi (Decentralized Finance) empowerment by facilitating users’ ability to control their assets. Zhao added that Binance is dedicated to providing a safe and easy environment for users to explore the Web3 space.
The use of MPC technology in the Web3 Wallet allays worries about holders losing their seed phrase, according to Binance’s Richard Teng, who oversees the firm’s regional markets.
Teng maintains that users can interact with Web3 in a secure and protected ecosystem thanks to the MPC and Binance’s reliable security infrastructure.
Responsibility For Wallet Security
In the meantime, a Binance representative has stressed the importance of users being accountable for the security and access of their wallet assets. The firm clarified that Binance would not help any user with access recovery to their wallets if they lost their device, forgot their recovery password, or deleted the Binance app.
For enhanced security, the wallet’s keys will be split into three pieces for added security. Binance will keep the first portion, the second will be stored on the user’s phone, and the third will be encrypted and backed up on the user’s cloud storage, such as Google Drive or iCloud, using their recovery password.
In response to challenges in its spot trading division, Binance is diversifying into other crypto service offerings. According to a blockchain analytics platform 0xScope report, the exchange’s market share in spot trading fell to 40% in 2023.
Similarly, Upbit, the South Korean-based crypto exchange, saw a notable surge in its spot market share over the same timeframe, going from 5% to 15.3%. In addition, the Bloomberg Billionaires Index shows a drop in the exchange’s transaction volumes, which also resulted in a 38% reduction in the net worth of the Binance founder.
This commendable innovation is among the many that crypto firms regularly introduce.