Binance has unveiled its latest offering, the Web3 wallet, during the Binance Blockchain Week conference held in Istanbul. This new wallet is set to be accessible to all users through the Binance mobile app, marking a pivotal moment for the crypto community.
Changpeng “CZ” Zhao, the CEO expressed the profound purpose behind launching this service. He emphasized that Web3 wallets are not merely tools for storing digital assets; they play a crucial role in the Web3 framework. These wallets empower individuals by granting them self-sovereignty over their finances, reflecting a broader trend in the crypto space.
The Web3 wallet utilizes multiparty computation (MPC) technology, breaking down a user’s private keys into three smaller parts called key shares. This innovative approach enhances security by mitigating the risk of key compromise. Two out of the three key shares remain under the user’s control, ensuring self-custody and reducing system vulnerability.
Binance Bridging the Gap to DeFi Empowerment
CZ highlighted that the Web3 Wallet integrated within the primary app simplifies the process for users to attain full self-custody of their assets. Moreover, it serves as a convenient bridge to decentralized finance (DeFi) empowerment. Binance’s focus remains on providing users with a user-friendly and secure environment to explore the Web3 landscape.
Richard Teng, head of regional markets at Binance, emphasized the importance of security in the Web3 Wallet. He highlighted the incorporation of MPC technology and trusted security infrastructure, assuring users of a secure ecosystem. However, users are reminded of their responsibility to safeguard their wallet assets and access. Losing recovery passwords or devices could lead to permanent loss of access, as the exchange cannot restore Web3 Wallets under such circumstances.
Decentralized Key Management
The Web3 Wallet’s key shares are strategically distributed across different locations. Binance holds one part, the user’s mobile phone stores another locally, and the third part is encrypted by the user’s recovery password and backed up to their personal cloud storage, such as iCloud or Google Drive. This decentralized key management approach further enhances security and user control.