Binance unveils Web3 wallet to simplify DeFi access

Binance has unveiled its latest innovation in the form of a Web3 wallet designed to streamline user interaction with the decentralized finance (DeFi) sector.

https://twitter.com/binance/status/1722154485928317010

Announced during the Binance Blockchain Week in Istanbul, the wallet is set to integrate with 30 blockchain networks, marking a significant milestone in the company’s expansion within the Web3 domain.

Changpeng ‘CZ’ Zhao, the CEO of Binance, emphasized the wallet’s role in the evolving digital landscape: “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 move places Binance in direct competition with established Web3 wallets like MetaMask and Trust Wallet, the latter having been acquired by Binance in 2018.

Coinbase and OKX, other prominent players in the centralized exchange market, have also ventured into the Web3 wallet space, signaling a growing trend of platforms aiming to provide a comprehensive crypto experience.

Binance users can look forward to creating their new wallets through the company’s mobile app, which promises to be a one-stop-shop for DeFi activities such as staking, lending, and borrowing.

The requirement for a know-your-customer (KYC) process in setting up a new wallet remains uncertain, which could be a pivotal detail for users concerned about privacy.

Security is a top priority given the vulnerability of Web3 wallets to cyber-attacks. To address these concerns, Binance has implemented a multi-party computation (MPC) security system.

This advanced mechanism divides a private key into separate parts, known as key shares, with the wallet owner controlling the majority. This method aims to eliminate the need for memorizing seed phrases while ensuring the security and self-custody benefits are upheld.