Binance, the world’s largest cryptocurrency exchange by trading volume, announced at its annual blockchain conference that it is rolling out a self-custody Web3 wallet with a twist: The wallet will come with multi-party computation technology, meaning that users will not need to remember a seed phrase.
The innovation was done to prevent hackers and scammers from accessing the wallets, a well-known problem in the Web3 industry. According to a press release, each wallet’s private key will be broken down into three parts called “key shares,” all stored in different locations. Wallet holders will control two of three key shares, with Binance controlling one.
The Web3 wallet will be available through the main Binance app, allowing for easy access that will likely appeal to mainstream audiences. It will work with 30 blockchains and allow for common decentralized finance operations, including staking, lending, and borrowing. In addition, there is an “airdrop zone” in the wallet for those that receive those kinds of rewards.
Chanpeng “CZ” Zhao, CEO and Founder of Binance, said in a statement that ultimately the goal in launching the wallet was to ensure users could explore Web3 in a friendly and protected environment. He added that it is important to identify gaps between centralized and decentralized systems in order to drive Web3 adoption.
Binance’s new Web3 wallet will use Trust Wallet’s layer technology services and was developed in partnership with the Trust Wallet team. The cryptocurrency exchange acquired Trust Wallet, another self-custody wallet, in 2018. Price on the Trust Wallet Token dropped 7% after the announcement.
Binance Makes News in 2023
Binance, founded in 2017, is no stranger to bear markets, and this year it has been building. From launching a Web3 reality show to experimenting with the link between artificial intelligence and NFTs, the company has been busy. Here are three stories involving it, all from the past six months.
First, three months ago, Binance debuted its AI-powered non-fungible token generator called “Bixel.” The tool allows users who have completed Binance’s KYC process to mint NFTs on the BNB Smart Chain using artificial intelligence. This wasn’t the exchange’s first experimentation between the technologies, having released “Bicasso” earlier.
Next, six months ago, Binance unveiled a lending program for Ethereum non-fungible tokens. Within the program, users are able to borrow ether by putting up their NFTs as collateral. The system is peer-to-peer with no expiration date on the loans, although they can be liquidated based on a “health score.”
Lastly, also six months ago, Binance revealed it was planning to launch a Web3 reality show called “Build the Block.” In the show, 12 startups were set to battle one another in front of a panel of judges and a live audience, with the winner receiving an investment from Binance Labs. It was said to be the first Web3 reality show in existence.
As these stories show, Binance has been busy building in the space, even as the market has remained largely in a crab walk. But with prices spiking now, there is a possibility that the exchange will be able to reap the rewards of its hard work. Rarity Sniper will look out for any developments in this story and update this article if needed.