Global cryptocurrency exchange Binance, has unveiled its Web3 wallet during the Binance Blockchain Week conference in Istanbul.
This new product is designed to function across 30 blockchain networks, providing users with access to the decentralised finance (DeFi) ecosystem.
Changpeng ‘CZ’ Zhao, Binance’s CEO, emphasised the significance of Web3 wallets, stating, “Web3 wallets represent more than just storing digital assets; they are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance.”
The Web3 wallet is built within the Binance mobile app, serving as a bridge between Binance’s centralised platform and the expanding DeFi landscape. The integration aims to simplify the user experience by eliminating the need for users to remember seed phrases, a common complexity in self-custody wallets. Users can seamlessly swap tokens across various networks, explore decentralised applications (dApps), and transfer funds between the wallet and the exchange.
Multi-Party Computation (MPC) Technology for Enhanced Security
To address security concerns associated with Web3 wallets, Binance employs Multi-Party Computation (MPC) technology. This advanced security measure splits a user’s private key into three key shares, with two of these shares under the user’s control. The third share remains secure with Binance, reducing the risk of key compromise and enhancing overall system security. Richard Teng, Head of Regional Markets at Binance, emphasised the importance of MPC in ensuring a secure and protected ecosystem for Web3 interactions.
Binance’s Web3 wallet enters a competitive market, directly competing with established players like MetaMask and Trust Wallet, the latter of which Binance acquired in 2018. The move signifies Binance’s commitment to expanding its offerings amid reported challenges in its spot trading business. While spot trading market share declined to 40% in 2023, Binance aims to leverage its vast user base to gain traction in the emerging DeFi space.