By
Mayowa Adebajo
May 9th, 2024
Binance web3 wallet possesses advanced security features like wrong address protection and malicious contract detection.
Global crypto exchange Binance has announced the launch of a self-custody Web3 wallet. The product, which can accessed through the Binance app, was revealed on Wednesday, November 8, during the company’s flagship Binance Blockchain Week conference in Istanbul. It was designed to provide millions of Binance users with a “simple, convenient and secure way” to explore the world of Web3.
Binance’s Web3 Wallet seeks to eliminate the risk of users losing their seed phrase or going through complicated onboarding processes. Users will be able to securely swap thousands of tokens across 30 blockchain networks, explore an array of decentralized applications (dApps), transfer suns between exchange and wallet and earn yield on their digital assets among other uses. It will compete with MetaMask and Binance-owned Trust Wallet.
“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,” said Binance Founder and CEO Changpeng ‘CZ’ Zhao.
He noted that bridging the gaps between centralized and decentralized systems was one way to drive adoption, adding: “Binance’s Web3 Wallet lowers the barriers of entry for users to achieve full self-custody of their assets and it is an important, convenient bridge towards DeFi empowerment. Ultimately, our priority is to ensure users can explore Web3 with us within a user-friendly and protected environment.”
Simplicity, Convenience and Security
Because the Web3 Wallet is built into the Binance mobile application, users can access dApps and decentralized finance (DeFi ) services within the app’s interface – eliminating the need to switch between platforms.
The Wallet also enables users to earn yields on their crypto from a suite of Earn and DeFi services. Crypto purchases can be made through the Swap function while cross-chain trades across various networks can be made at the tap of a button.
Seeking to eliminate the risk of users losing their seed phrase but maintaining the benefits of security and self-custody, the wallet uses an advanced security technique known as Multi-Party Computation (MPC). It breaks down a user’s private keys into three portions called key-shares which are split across three different locations to reduce the risk of the keys being compromised. In the spirit of self-custody, two of the three key shares are controlled by the user and the funds in the wallet are solely owned and accessible by the user.
“We want our users to be assured that they are interacting with Web3 within a secure and protected ecosystem. That is why we have incorporated MPC technology as well as Binance’s trusted security infrastructure within the Web3 Wallet. The common stress of worrying about losing one’s seed phrase is removed, so that we can introduce a secure and smooth entry point for millions of users to safely and easily explore the Web3 universe,” said Richard Teng, Head of Regional Markets at Binance.
The wallet also possesses advanced security features like wrong address protection and malicious contract detection which notify users if an asset or blockchain address carries a risk at the time of the transaction. It is still unclear if users will be required to complete a know-your-customer (KYC) procedure before they start using the service.