Binance officially announced a built-in Web3 wallet in Binance App, allowing you to switch between CeFi and DeFi with one click

Binance, the world's leading cryptocurrency exchange, recently announced that it has built a Web3 wallet into the Binance App, providing users with the ability to switch between CeFi and DeFi with one click. The launch of this feature means that users can conveniently manage and trade assets without leaving the Binance App.

Binance's Web3 wallet has several main features. First, it supports MPC (multi-party computing) technology. Users no longer need to remember mnemonics. Through MPC, the private key will be divided into three smaller parts, called key shares, of which two of the three key shares will always be controlled by the user to achieve self-custody, and one key share will be managed by Binance. This technical means can improve the security of user assets while also improving the flexibility of transactions.

Secondly, Binance uses 1inch as an aggregated trading service provider, mainly using the classic mode for same-chain transactions. 1inch is an efficient aggregated trading service that can provide more trading options and a better trading experience.

In addition, Binance's Web3 wallet also integrates Binance Bridge, which supports the rapid transfer of assets between different chains for cross-chain transactions. This technical means can avoid the problem of insufficient liquidity on some currency chains, and can also improve the efficiency and flexibility of transactions.

In addition, Binance's Web3 wallet supports 37 public chains, including 24 EVM-compatible chains and 13 Cosmos chains. This means that users can manage multiple types of assets in Binance's Web3 wallet and also conduct multiple types of transactions.

Binance has its own considerations for launching this feature. Referring to the APP Store war in the mobile Internet, the earliest third-party stores such as Wandoujia were very popular, until later the market share was almost occupied by the application stores operated by mobile phone manufacturers, which are closer to users and have a natural advantage in reach. The same is true for Web3 wallets. By building a self-hosted wallet into the exchange APP, users of centralized exchanges can be directly converted, and it has extremely high user stickiness.

Although the competition in the wallet market is fierce, Binance still has traffic advantages, especially the brand and traffic in overseas markets, which other competitors do not have. Therefore, this move by Binance will bring it more users and market share.

For the entire Binance ecosystem, the launch of this feature will greatly benefit BNB Chain and its Dapps. At the peak of the last bull market, BSC had a large amount of trading volume and users. One of the mistakes at that time was that BSC users basically had to use MetaMask on the PC to access and trade, and Binance and users were always separated. Now, the launch of the Web3 wallet has truly realized the internal circulation of the Binance ecosystem. This will bring more activities and users to BNB Chain and its Dapps.

For BNB, the increase in BNB Chain activities brought by the wallet will also boost its demand. However, what is more worth looking forward to is its accelerated promotion and application of opBNB. At the same time, we also need to observe whether Binance will launch some measures in the future to make the Web3 wallet and BNB token more closely integrated.

In general, Binance's built-in Web3 wallet function in the Binance App is an important move. It will bring better trading experience and more opportunities to users. At the same time, it will also bring more opportunities and development space to the entire Binance ecosystem. We look forward to the launch of this feature to bring more vitality and innovation to the cryptocurrency market.

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