Binance is launching a new self-custody wallet. They are calling it Binance Web3 Wallet. I am not surprised to see Binance building a self-custody wallet. As much as exchange would like to have people's crypto assets in their wallets, self-custody is an essential part of crypto world. While some may choose to keep their funds in exchanges, some see great benefit in self-custody. After all, that is what decentralization is about, that is what revolutionary about bitcoin and other decentralized network. They provide true and complete ownership of property which is achieved by self-custody wallets that only the owners have access to. While Binance has been an successful company by offering exchange platform, they fully understand the space they are in. Supporting self-custody is a good for the brand.
Coinbase, another successful crypto exchange has self-custody wallet with the same name. Coinbase not too long ago acquired one of my favorite self-custody wallets, BRD. After acquiring it they didn't anything with it, and discontinued its use. Those who used BRD were forced to transition to Coinbase self-custody wallet. BRD app just stopped working, and funds were available via Coinbase self-custody wallet. I didn't really like that Coinbase stopped BRD and that they acquired it. Binance too acquired a self-custody wallet in 2018. It was long before Coinbase did. The wallet Binance acquired was the Trust wallet. It seems Binance is taking a little different approach with the new self-custody wallet.
With what both Coinbase and Binance trying to do, it seems this has to do with branding. Because chose to use the company name for the wallet. I find it confusing, but probably this is good for business. I don't mind seeing multiple self-custody wallet options. If successful exchanges choose to develop and maintain few, why not? They have the resources to contribute to the crypto eco-system.
One of the main difference of Binance Web3 Wallet is that it doesn't require seed phrase. They are utilizing three part key-share. There will be three keys. All three will be encrypted. One is held by Binance, second is on user's device, and third in a personal cloud storage. Two key-shares are required to access the wallet. What they are trying to solve is the problem when people lose their private keys and/or seed phrases. Since all three parts are encrypted and stored in three separate places, Binance will not have access to the wallets but users will always have two parts of key-share which is needed for accessing. If for some reason a user loses their key-share, they will be able to obtain the key-share Binance hold from Binance and gain access to their funds.
I do not dislike the idea. I am sure there will be many who will prefer normal self-custody with full ownership and responsibility of access to the wallets. But there will also be those who will find Binance's solutions useful. It seems it would still be a better option than holding assets on an exchange. With FTX and other failed exchanges we have seen how funds can easily disappear or be misused by the exchanges, with Binance's Web3 wallet it looks like assets will remain in the wallets and not misused. Binance Web3 Wallet will not be a separate mobile app. It will be part of Binance mobile app. I personally would prefer a separate app. But I can how this could be useful for those who use Binance frequently.
Among the feature of the wallet is an "airdrop zone" for exclusive airdrops. It will also provide access to staking, lending. They will also present curated selection of dapps. Now it looks like with this product, Binance will be more involved in various "decentralized" projects and play role in promoting some. While many projects and app utilize "decentralized", "web3", and similar terminologies to present themselves to be pioneers in decentralized solutions, unfortunately many misuse and mislabel them. Having a centralized entity having more influence on which projects and apps are promoted might create some conflict of interest. I am not sure I would trust Binance's curated selection. I just don't know enough yet.
When it comes to wallets, of course my preference is Hive wallet. It is such a great wallet. So easy to use, complete ownership, so many awesome features. I have written extensively about Hive wallet. But it is only for Hive and HBD. What I would really want to see is ability to store other coins like bitcoin, litecoin, ethereum, etc with Hive wallet. Now, that would be something really impressive.
Binance is a biggest exchange and this wallet will be a good addition.
I agree with you that Binance is showing its support for the crypto ecosystem and that self-custody is an essential part of it. I also hope that Hive's wallet will accept other cryptocurrencies, that would be amazing.
Yup! Hive is still the best, others just seem complicated to me.
I don't think it's a bad idea but if binance holds one and another in a cloud (that is probably under their control), then it doesn't sound that great. Or is it your own personal cloud? Either way, I also prefer the Hive wallet.
It would be personal cloud storage like icloud, onedrive, or google drive.
They send me e-email about it everyday. Thanks for the explanations. Binance is good, but too much complicated and slow platform.
Coin base did to BRD. What Binance is about to do to trust wallet.
This large established companies are grabbing market share by buying off competitors and adopting there users.
They are all after creating monopolies or monster crypto companies.
With all this going on one thing is for sure, crypto is here to stay and they are preparing for,when the market expands. The question remains with us users are we doing the same for the growth that’s ahead.
I also think it's a good idea with the three key part share, especially for users who are new to the web3 world. But it's always better to have a fully decentralized self-custody wallet. Better safe than sorry.
Binance wallets looks so innovative. But it requires the kyc. I have others that i use that dont need to !
This is a great development and this will increase optimistic among Binance user to use the app
so this wallet will be centralized or decentralized?
Considering it requires using Binance app, probably centralized. I wonder if wallet could be accessed without binance app, don’t know.
I just see this as a way of Binance switching or trying to adopt to the Web3 world
Web3 owns the world now do the earlier, the better
Not too bad, but I am going to stick with full self-custody and as decentralized as possible.
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That is what technological awakening is all about. A lot of users will welcome the coinbase safe custody wallets with both hands while others will not. At any rate, I believe hive is not sleeping, the team of engineers and experts have seen something to work on and I believe they will come up with a far more better option that may incorporate other crypto.
The crypto market is growing and as mentioned in my publication, January will be an avalanche of new investors, that is why I believe that all wallets are being updated to hold the user responsible for the custody of their crypto, for me Binance is complicated and expensive I prefer to keep my HBD in the HIVE wallet and change with Orinoco a wallet that operates in Venezuela and so far has not had problems, like Binance has had regarding its security.
Es necesario el camino a las DeFi y Binance obviamente intenta modernizar tecnológicamente su plataforma y estar a la par de la web 3.0.
Yes , no fat disput about Hive is the best in terms of wallet built in security . Only wallet security prompt on Hive here should likely reminding about your personal active key , of which once inputted no stress at all. But Binance never yet so. Might be the proposed new project on wallet is going to come with more inbuilt security check , in close relations to said three projected keys.
I found the article on Binance Web3 Wallet embracing self-custody interesting! It's great to see platforms recognizing the importance of empowering users with self-custody options.
The move towards decentralized solutions is definitely promising for the crypto community.
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