Main conclusions
Mass adoption of any innovative technology requires scalable and user-friendly identification systems.
Today, most cryptocurrency wallets suffer from the same fundamental problems that are preventing mass adoption of Web3: complex setup, fragmented wallets for different blockchains, poor seed security, and an awkward user interface.
Our latest product is a DeFi wallet that aims to solve many of the problems with Web3's current identity system.
Find out what the industry is saying about Web3's adoption and identity features, and explore Binance DeFi, a secure MPC-based DeFi wallet built into the Binance app.
The issue of personal identification has remained relevant to the Internet since the very first days of its existence (Web1), when IP addresses were used for identification. Their use only increased after Web1 introduced URLs.
Web2 introduced new problems: each site and application required a separate authentication system, which led to weak passwords, disjointed accounts, and poor usability. Google, Facebook, and Apple have solved this problem with OAuth-based federated identity systems. Thus began a new era of Web2 applications.
Web3 today faces similar identity-related issues, including complex wallet addresses, MEMO and cross-chain issues, and ineffective wallet security protocols. By addressing these issues, we can unlock the full potential of Web3 and provide users with a smooth, secure, and convenient experience.
Current difficulties
Of course, it is easier to talk about what an effective identification system is than to create one. Today, various factors hinder the creation of an “ideal” system:
Centralized exchanges (CEXs) use their own, disparate identity systems. DeFi uses blockchain-based wallets; For users who have just entered the world of cryptocurrencies, it is much more difficult to work with them.
The user interface of Web3 is not user friendly, unlike Web2. Passphrases, hardware keys, and browser plugins tend to be difficult to use, especially for beginners.
Users have to go through different verification procedures if they use multiple centralized financial products. At the moment, DeFi does not require user verification, but this may change as legislation develops.
There are no identification ranges in Web3 yet, only addresses. This is a problem for DApps: they cannot differentiate the users they are targeting from others. How can we keep Web3 private and open while preventing abuse and fraud?
Wallets are the key to Web3
To take advantage of the full potential of Web3, you need a crypto wallet. Multifunctional wallets are also the key to solving many of the challenges facing Web3.
Although there are hundreds of options today, from hot to cold wallets, most of them suffer from the same fundamental problems that are preventing Web3 from taking off:
complex setup;
different wallets for different blockchains;
low security of seed phrases;
inconvenient user interface (you need to manually use MEMO, copy long addresses and select the correct network).
Our industry has made some progress in addressing these issues, such as the development of distributed computing (MPC) wallets and the smart contract-based Ethereum protocol for wallets. But we still need to implement other functions:
Trusted identity provider. Ideally, this would be a provider with hundreds of millions of users, akin to the Google and Apple of Web2.
High-quality customer support: If a user loses a key or device, they can be confident that they can turn to trusted partners to help them recover it.
Intuitive and accessible user interface with one-click registration, funding and transfers.
Cross-chain support instead of linking each wallet to only one specific network.
Software development kits (SDKs) that can be used by anyone in the ecosystem. Wallets are just the beginning.
Increased manageability: Users should be able to assign trusted executors who are responsible for resolving these issues.
Introducing the Binance DeFi Wallet Powered by Binance ID
Binance DeFi Wallet is built directly within the Binance app using the latest distributed computing standard. This type of cryptography allows a group of users to perform an operation without revealing their private keys. In other words, no party to the transaction has access to the full private key or any part of the key other than their own. The private key remains secure even if one of the parties to the transaction is compromised.
The Binance DeFi wallet not only has the most effective security, but also various advanced features: Binance ID, biometric authentication, support for WalletConnect and SoulBound Tokens (SBT), and much more. Let's look at the practical benefits of the Binance DeFi wallet.
One-click setup
Registration is just one click, after which you will have access to a reliable DeFi wallet. Setting up the wallet is quick and takes place on a user-friendly platform, unlike many other Web3 wallets that often have awkward user interface designs and confusing instructions.
Cross-chain support
The Binance DeFi wallet will support Ethereum and BNB Smart Chain (BSC) from launch. Support for other blockchains will be added in the coming weeks.
Wallet recovery
If you lose your device, simply log in with your Binance ID and complete multi-factor authentication to recover your DeFi wallet.
From CeFi to DeFi
Super-simple fund transfer between centralized and decentralized financial systems with biometric authentication: Send and receive funds securely in just a few taps.
One device, all DeFi capabilities
The Binance DeFi wallet fully supports the popular WalletConnect protocol, which allows you to work with any DApps on Ethereum or Binance Smart Chain. This means you will be able to manage your DeFi portfolio and trade assets without switching between wallets or platforms.
Privacy with SoulBound Tokens
Gain access to a wide range of DeFi services while maintaining full control over your data. One of the advanced features of our wallet is Binance SoulBound Tokens (SBT). These are digital identity tokens that allow you to confirm your identity on the blockchain without revealing sensitive information.
Create your Binance DeFi wallet now!
Wallets are one of the most important components of Web3. They will help our industry reach the next billion users. We are pleased to announce that we have created a product that allows users to easily move from CeFi to DeFi and vice versa. Create your wallet today and if you have any suggestions, please leave a product review.
Create a Binance DeFi Wallet →