On November 8, Binance finally officially announced that it would build a Web3 wallet into the Binance App, allowing users to switch between CeFi and DeFi with one click.
There are several main features:
(1) Support for MPC (Multi-Party Computation): There is no need to remember mnemonics anymore. 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, while one key share will be managed by Binance;
(2) 1inch becomes the winner: Binance uses 1inch as an aggregated trading service provider, mainly using the classic mode for same-chain transactions;
(3) Integrated Binance Bridge: supports fast transfer of assets between different chains for cross-chain transactions. It makes full use of
Binance's liquidity advantage is to first recharge back to the main site, complete the transaction, and then withdraw cash back to the wallet. This is simple but effective, and avoids the problem of insufficient liquidity on some currency chains.
(4) Supports 37 public chains: including 24 EVM-compatible chains and 13 Cosmos chains;
Referring to the APP Store war in the mobile Internet, various third-party stores such as Wandoujia were very popular at first, until later the market share was almost occupied by the application stores operated by mobile phone manufacturers themselves, which are closer to users and have a natural reach advantage. The same is true for Web3 wallets. Through the built-in self-hosted wallet in the exchange APP, it can directly convert users of centralized exchanges and has extremely high user stickiness.
Despite the fierce competition in the wallet market, Binance still has traffic advantages, especially brand and traffic in overseas markets, which other competitors do not have.
Who will benefit from this?
First of all, of course, it is the entire Binance ecosystem. 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 might be that BSC users basically had to access and trade through MetaMask on the PC. Binance and users were always separated. The launch of the Web3 wallet truly realized the internal circulation of the Binance ecosystem.
This will be of great benefit to BNBChain and Dapps within its ecosystem, such as Pancake, ApolloX, etc. The market response is extremely quick, and these projects have had obvious price feedback in the secondary market recently.
For BNB, the increase in BNB Chain activities brought by wallets will also boost its demand, but we still look forward to its acceleration
We will continue to promote the application of opBNB and observe whether Binance will launch some initiatives in the future to more closely integrate Web3 wallets with BNB tokens.
Secondly, there are various DeFi applications. The Binance Web3 wallet is equivalent to adding a new user pool to the entire DeFi world, especially directly integrated DeFi services such as 1inch. Some new Dapps can also be distributed using the Binance Web3 wallet to achieve more user conversions.
Finally, it is worth looking forward to how the Binance Web3 wallet will play with the Bitcoin ecosystem in the future, especially the recently popular Brc20 inscription. With the participation of Binance, this track will also usher in new vitality.
Looking back at the DeFi Summer and NFT craze of the last bull market, they all came from the chain. The engine of the next bull market will undoubtedly (perhaps 99%) also come from on-chain innovation. The wallet is always the entrance. Let more people enter Web3. This is not an empty slogan. Only in this way can we have the bull market that everyone expects.
