Renowned cryptocurrency exchange Binance has recently launched its own self-custodial Web3 wallet, providing a secure platform for users to interact with the decentralized finance (DeFi) ecosystem. According to Binance officials, Web3 wallets are not just for storing digital assets; they are an essential component of the Web3 framework, enabling individuals to engage in self-sovereign finance.
The new Web3 wallet will be able to function across 30 blockchain networks and compete with other established platforms like MetaMask and Trust Wallet. Trust Wallet, which was acquired by Binance in 2018, has incorporated its Wallet-as-a-Service (WaaS) technology into the product, allowing swift development for businesses aiming to launch their own Web3 wallet. The Web3 wallet provides various services, such as asset management and cross-chain transfers, streamlining the process for companies entering the Web3 space.
The Web3 wallet can be created through Binance’s mobile app, which also serves as the venue for DeFi activities like staking, lending, and borrowing. It is still unclear whether users must undergo a know-your-customer (KYC) procedure to create an account.
One of the biggest concerns surrounding Web3 wallets is security. Hackers often target these wallets since gaining access to a user’s private key could lead to draining all funds irreversibly. To combat this issue, Binance has integrated multi-party computation (MPC), ensuring that users’ funds remain secure. MPC removes the need for users to memorize seed phrases while maintaining the benefits of security and self-custody. Additionally, MPC involves breaking up a private key into three parts called key shares, with two of the three key shares being controlled by the wallet owner.
Binance officials emphasized that user safety and ease of use are top priorities when exploring the Web3 space. The introduction of this platform comes after Binance stopped accepting new clients in the UK following regulatory decisions that halted its marketing efforts in the country. Nevertheless, Binance continues to innovate and expand its services to provide users with a reliable and secure platform to manage their digital assets.
