Binance launches Web3 wallet for its 150M registered users
Crypto exchange Binance announced the launch of its new Web3 wallet at the Binance Blockchain Week conference in Istanbul, to be made available to all users via the Binance mobile app.
During the launch, Changpeng “CZ” Zhao, CEO of Binance, revealed the intent behind launching the service:
For the purpose of simplicity, Binance’s Web3 wallet launches within the primary Binance app, which is predominantly used for trading cryptocurrencies. The wallet uses multiparty computation (MPC), which is used to break a user’s private keys into three smaller parts known as key shares.
Two of the three key shares will be controlled by the user at all times, allowing for self-custody. Binance spokesperson confirmed with Cointelegraph that the Binance Web3 Wallet is not available to users in the US as Binance.com is not available in the US. CZ added:
According to Richard Teng, head of regional markets at Binance, the MPC technology removes the fear of losing one’s seed phrase. “We want our users to be assured that they are interacting with Web3 within a secure and protected ecosystem. That is why we have incorporated MPC technology as well as Binance’s trusted security infrastructure within the Web3 Wallet,” he added.
Speaking to Cointelegraph, a Binance spokesperson clarified that users should still safeguard their wallet’s assets and access.
The three shares of the keys will be held in three places — the first part will be with Binance, the second part will get stored locally on the user's mobile phone and the third part will get encrypted by the user's recovery password and backed up to their personal cloud storage such as iCloud or Google Drive.
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