Cryptocurrency exchange Binance has introduced a Web3 wallet that provides users with the means to engage with the decentralized finance (DeFi) landscape.
This novel offering, compatible with 30 different blockchain networks, was unveiled during the Binance Blockchain Week conference held in Istanbul.
Binance’s CEO, Changpeng ‘CZ’ Zhao, emphasized the significance of Web3 wallets, describing them as more than just storage for digital assets. They represent a crucial facet of the Web3 framework, granting individuals the power of self-sovereign finance.
Binance’s Web3 wallet now enters the competitive arena alongside counterparts like MetaMask and Trust Wallet, the latter of which Binance acquired in 2018.
Binance has also introduced a futures market for TrustWallet’s native token (TWT), which experienced a 7% decline in price following the announcement. Notably, other centralized exchanges like Coinbase and OKX have also ventured into the realm of Web3 wallets.
To access this functionality, users can create a wallet via Binance’s mobile app, which will serve as the hub for various DeFi activities, including staking, lending, and borrowing. The requirement for users to complete a know-your-customer (KYC) procedure to create a wallet remains uncertain.
Given the susceptibility of Web3 wallets to hacking and exploitation, Binance aims to enhance security through multi-party computation (MPC). This approach eliminates the need for users to memorize seed phrases while preserving the advantages of security and self-custody. In fact, in MPC, a private key is divided into three segments called key shares, with two of these segments controlled by the wallet owner.
CZ reiterated his commitment to ensuring that users can now explore the Web3 landscape within a user-friendly and secure environment.
