New Self-Custody Wallet Announced By Binance

Binance, the largest cryptocurrency exchange worldwide in terms of trading volume, has introduced a self-custody wallet integrated into its native app. The announcement was made during the Binance Blockchain Week conference held in Istanbul during which the exchange highlighted that millions of its users now have the opportunity to explore and engage with Web3 without the associated risks of seed phrase loss or complicated onboarding procedures.

Bridging the gap

One of the main objectives that Binance has is to encourage its clientele to utilize the aforementioned wallet for activities such as trading thousands of tokens across more than 30 networks, exploring decentralized applications (dApps), transferring funds between the exchange and the wallet, and generating yield via digital assets.

Binance founder Changpeng Zhao emphasized the importance of bridging the gap between centralized and decentralized systems to efficiently foster Web3 adoption. The wallet therefore simplifies the process for users to achieve full self-custody of their assets while also actively engaging with Web3.

Safety is key

While blockchain technology includes numerous inherent safety features that make hacking difficult, it is not infallible. Although a hacker can take over a blockchain, they are more likely to steal tokens through wallets or cryptocurrency exchanges directly. This is why trustworthy security measures are critical, especially as the world becomes more technologically advanced.

By employing Multi-Party Computation (MPC) technology, the new wallet reportedly ensures robust security and protects users against malicious entities. Private keys are divided into three smaller components known as key-shares, strategically located in separate locations, which enhances key security and mitigates the risk of compromise, making the system less vulnerable. The funds held in the wallet are the sole property of the user and can only be accessed by them.

Despite the recent uptick in cryptocurrency prices, primarily led by Bitcoin (BTC), Binance saw its market share experience a gradual decline, dropping to 50% last month comparative to being around 75% last December. BNB, the native token of the crypto exchange, is currently ranked fourth worldwide in terms of market capitalization.