June 24, 2024
Binance Introduces Web3 Wallet for 150 Million Users
Latest Cryptocurrency News

Binance Introduces Web3 Wallet for 150 Million Users

Binance, the prominent cryptocurrency exchange, unveiled its latest innovation—a Web3 wallet—during the Binance Blockchain Week held in Istanbul. This new feature is set to be accessible through the Binance mobile application, which is already widely used for crypto trading.

Changpeng Zhao, the CEO of Binance, emphasized the significance of Web3 wallets, stating that they extend beyond merely storing digital assets to being a crucial component of the Web3 infrastructure, enabling users to manage their finances independently.

The new wallet incorporates multiparty computation (MPC) to enhance security. This method divides a user’s private keys into three separate key shares, enhancing the security against potential compromises. Users will maintain control over two of these key shares, thereby ensuring self-custody of their assets.

However, this wallet will not be available to users in the United States due to the unavailability of Binance.com in the region. Zhao highlighted the wallet’s role in simplifying entry into self-custody and acting as a bridge to decentralized finance (DeFi), reiterating the company’s commitment to providing a secure and user-friendly Web3 experience.

Richard Teng, head of regional markets at Binance, pointed out that the adoption of MPC technology alleviates the anxiety associated with losing one’s seed phrase, reassuring users of a secure interaction with Web3.

It’s crucial for users to secure their wallet’s assets and access, as the company will not be able to restore access if they forget their recovery password and lose their device or delete the app. The key shares are distributed across Binance, the user’s mobile device, and their personal cloud storage, which is encrypted by their recovery password.

This strategic move into Web3 services comes at a time when Binance is reportedly experiencing a decline in its spot trading market share, which has dropped to 40% in 2023 according to 0xScope. This decline is attributed to the performance of coins after being listed on the exchange. Meanwhile, rival exchange Upbit has seen a notable increase in its market share. Amidst these market shifts, Zhao’s personal net worth has also reportedly decreased by 38%, as per the Bloomberg Billionaires Index.

Image By vecstock

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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