Digital asset exchange Binance has recently unveiled its new web3 wallet, providing its users with a convenient gateway to self-custody. The announcement was made during the Binance Blockchain Week Conference in Istanbul, where the company emphasized the wallet’s versatility by integrating it across 30 different blockchain networks. This integration allows users to effortlessly connect with various decentralized applications (dApps).
Enhanced User Experience
During the conference, Binance CEO Changpeng Zhao expressed the importance of empowering users to explore different methods of storing their digital assets. The web3 wallet will be accessible to all Binance App users and will compete directly with popular wallets like MetaMask and Trust Wallet, which is currently owned by Binance.
Although the roles of both wallets remain unclear, reports suggest that the new web3 wallet will be easily accessible through the Binance exchange. Notably, it emphasizes a user-friendly and protected environment for interacting with the Web3.
While the convenience of the new web3 wallet is highlighted, the company has not disclosed whether a know-your-customer (KYC) process will be mandatory for its usage. However, Binance’s ultimate goal is to ensure that users can explore Web3 technologies within a secure and user-friendly environment.
Enhanced Security Measures
“In recent years, web3 wallets have been susceptible to the activities of bad actors leading to losses, but Binance has implemented measures to prevent any infamous incidents,” said a Binance spokesperson.
The web3 wallet incorporates a multi-party computation (MPC) system, which divides private keys into three parts. This approach reduces the risks associated with storing digital assets. With this system, users hold two out of the three key shares, while Binance retains the other. One of the user-held key shares is stored on the user’s mobile device, while the other is encrypted through the password recovery process and backed up using cloud storage.
Although this method aims to provide a secure storage solution, Binance advises users to protect their account details at all times. Richard Teng, the Head of Regional Markets at Binance, highlights that this system eliminates the fear of losing seed phrases, thus boosting user confidence as they interact within the safe Web3 environment.
Availability and Competition
The web3 wallet can currently only be accessed on Binance.com globally. However, it is not available to users in the United States. As the country conducts transactions through the US entity, Binance.US, American users will have to wait until the wallet is available on their platform.
With the launch of the web3 wallet, Binance enters the competition with major players like Coinbase and OKX, both of which have already introduced their respective web3 wallets. This move by Binance comes at a time when the exchange is facing a decline in spot trading volumes, resulting in a loss of market share.
