Binance Takes On MetaMask And Its Own Trust Wallet With New Web3 Wallet

Updated: 08 November 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Binance has launched its own Web3 wallet that will compete with MetaMask and Trust Wallet, the latter of which it acquired only in 2018.

TrustWallet’s native cryptocurrency, Trust Wallet Token (TWT), plunged almost 14% in 24 hours after news of the development broke. It traded at $1.45 at 11:08 a.m. EST.

The launch comes just a few days after the world’s biggest crypto exchange listed a futures market for TWT.

“Web3 wallets represent more than just storing digital assets,” said Binance CEO Changpeng Zhao at the Binance Blockchain Week conference held in Istanbul. “They are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance.”

Binance Wallet Gives Users Access to Multiple Chains

The new product will work across 30 blockchain networks and can be used to interact with the decentralized finance (DeFi) ecosystem.

Users are now able to create a wallet through Binance’s mobile app. They will also be able to engage in other DeFi activities such as staking, lending and borrowing.

Web3 wallets are renowned for attracting cyber criminals That’s because hackers can gain full control of, and perform irreversible transactions with, any wallet that they are able to retrieve the private key for.

To defend its users from exploits, the Binance wallet implements multi-party computation (MPC). Through MPC, private keys linked to Binance wallets are split into three parts that are referred to as key shares.

Two of the three key shares are controlled by the wallet owner, while the remaining share is encrypted and housed within the wallet provider’s database.

“Ultimately, our priority is to ensure users can explore Web3 with us within a user-friendly and protected environment,” Zhao added.