Recently, at the Binance Blockchain Week conference in Istanbul, Binance introduced a new Web3 wallet that allows interaction with the decentralized finance (DeFi) financial ecosystem. Initially, this Web3 wallet will operate on 30 different blockchain networks and later expand to all existing networks.
Binance’s Web3 wallet will compete directly with other products like MetaMask and Trust Wallet, with Trust Wallet having been acquired by Binance in 2018.
Currently, users can easily create a wallet through the Binance mobile app and use it to perform DeFi activities such as staking, borrowing, and lending.
Here’s a guide on how to create a wallet:
1. Open the Binance app.
2. Select the “Wallets” tab.
3. Choose “Web3.”
4. Click “Create Wallet” to get started with your wallet.
Notably, not just Binance, but other centralized exchanges like Coinbase and OKX have also swiftly launched their own Web3 wallets.
Changpeng Zhao, the CEO of Binance, stated about the new Web3 wallet, “The Web3 wallet is not just for storing digital assets but is also an essential part of the Web3 space, enabling users to have control and manage their assets.”
Furthermore, due to the fact that Web3 wallets are often targeted by hackers, Binance hopes to address this issue through multi-party computation (MPC) methods. MPC eliminates the need to remember a passphrase while not compromising security and self-custody. MPC involves splitting the private key into three parts called “key shares,” with two out of the three key shares being controlled by the wallet owner.
Lastly, the CEO emphasized, “Our priority is to ensure that users can explore the Web3 space in a user-friendly and secure environment.”
Following Binance’s announcement, the price of the Trust Wallet token (TWT) dropped by nearly 15% from its yearly high of $1.81. At the time of writing, TWT is trading around $1.4 USD.