The Binance Web3 Wallet strives to simplify users’ experience and convenience as they transition between CeFi and DeFi with extra options on the DeFi side.
DeFi (Decentralized Finance) users within the Binance ecosystem are set for more options and convenience after Binance integrated more dApps for its Binance Web 3 Wallet. Previously, the wallet only supported Ethereum, BNB Chain, Avalanche, Polygon, and Fantom. It will now support 24 new dApps, including 48 Club, Avascriptions, BakerySwap, Ethscriptions, and zk Bridge.
Users can access the Web3 wallet and the extra supported dApps from the Binance app. Although associated with a centralized exchange, the Binance Web3 Wallet aims to simplify the users’ experience as they transition between CeFi and DeFi. Accessing Web3 can be daunting to new users, from mastering various cross-chain bridges to seed phrases as access control. Users can permanently lose access to their digital assets if they forget their seed phrases in other Web3 wallets.
The Binance Web3 Wallet eliminates this. For instance, users don’t need tricky seed phrases to access their wallets. Instead, it uses a new technique, MPC (Multi-Party Computation), to split the passkey in three ways to eliminate a single point of failure when you forget the “seed phrase”.
Binance Web3 Wallet was first launched in November 2023 to simplify some of the mentioned Web3 access and security hurdles. Additionally, it is a self-custody wallet, which means users have control of their keys despite the wallet being linked to Binance. Other features include optimal swap rates and customer support. However, the Binance Web3 wallet was initially limited to specific chains and dApps. The newly added 24 dApps will offer more choice and convenience for seasoned and new DeFi users.
Binance Web3 Wallet Competitors
The Web3 wallet space is getting crowded as several products strive to satisfy the increasing demand for DeFi access. Binance has joined Coinbase, another centralized exchange (CEX), which also offers a similar product, Coinbase Wallet. Although the two Web3 wallets are self-custodial and linked to centralized exchanges, they still have to battle for market share from big contenders like MetaMask and Trust Wallet.
Metamask and Trust Wallet are decentralized and can be perceived as carrying fewer centralization risks by users compared to products from Binance and Coinbase.
However, the simplicity, security, and all-in-one convenience of CEX-linked wallets like the Binance Web3 wallet could be game changers for new Web3 users. It could help drive mass adoption of Web 3 despite the blurring line between centralization and decentralization.
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