Key points
Binance Web3 Wallet is a non-custodial wallet where users have full ownership of their assets and private keys. It differs from custodial wallets, where a third party is in control and the user must trust a centralized service.
Binance's Web3 wallet uses MPC technology, splitting access into three keys stored in different locations and providing robust security without the traditional use of passphrases. The wallet cannot be accessed with only one key. Two are always with the user.
To emphasize the user's exclusive control and commitment to non-custodial storage, the Binance Web3 wallet also offers an "Emergency Export" feature that allows users to export their private keys.
Binance's web3 wallet offers a revolutionary approach to non-custodial storage, combining multiparty computing technology with user empowerment, providing true ownership of cryptoassets.
When it comes to managing your crypto assets, the type of wallet you choose plays a crucial role in keeping your funds safe. Among the various options available, the concept of non-custodial wallets stands out because they give users complete control over their assets. Still having a hard time getting your head around it all? First, let's break down the difference between non-custodial and custodial storage.
Learn more about cryptocurrency wallets and private keys
Non-custodial wallet. In a non-custodial wallet, the user owns the private keys and therefore has full control over their funds. The user is fully responsible for the management and storage of his keys. If the keys are lost or stolen, they cannot be retrieved by anyone else and the funds will be irretrievably lost.
Custodial wallet. In a custodial wallet, private keys are controlled by a third party (such as a cryptocurrency exchange or managed wallet service). This means that they control the funds stored in the wallet. Users rely on the service provider to protect funds and can recover funds if access data, such as a password, is lost. However, the downside is that their funds can be frozen or stolen if the third party is hacked, goes out of business, or decides to freeze your assets for some reason.
Private keys. In cryptocurrency, a private key is a secret password consisting of letters and numbers that is used to transfer your digital assets to another address. It is this unique and secret key that gives you access to your cryptocurrency, just like a physical key gives you access to your house.
Having a private key is essentially what determines your ownership of your digital coins. If someone else has your private key, they can easily transfer your coins without your consent. Therefore, it is very important to keep your private keys safe and confidential.
Private keys are long, complex, and difficult to remember, and if you lose them, you'll lose access to your digital assets forever. Wallets usually do not provide direct access to private keys for security reasons. Instead, they provide you with a "passphrase" - a list of 12-24 words that act as a recoverable and understandable backup to restore and protect your private keys to access your cryptocurrencies.
Binance Web3 wallet: the benefits of non-custodial storage
With the Binance Web3 wallet, you are the full owner of your assets. With this wallet, you have the option of using a non-custodial storage model with the guarantee that only you have exclusive access to your funds and full control over your assets. One of the most important things to know about the Binance Web3 wallet is that it uses multiparty computing (MPC) technology. Simply put, this means you can use a non-custodial wallet without having to remember a passphrase, but still have full, unlimited control over your assets.
How does this technology work? Read our blog article on MPC to learn more. And if we talk about non-custodial storage, you should remember that the Binance Web3 wallet is protected by three keys and a recovery password known only to the user. These keys are generated during wallet creation and are stored in different locations for added security:
First Key: Stored in Binance;
Second key: stored on your device;
Third key: Encrypted with the recovery password you entered and stored in your personal cloud storage (iCloud or Google Drive).
You must have at least two keys to access your Web3 wallet. Binance owns only one key. Binance will not be able to access your wallet without you. But this means that if you lose your device (and the key on it), you can recover your Web3 wallet and its assets thanks to a backup of the keys in your personal cloud storage and the key stored on Binance's servers.
However, please note that you and only you have access to two of the three keys and are therefore solely responsible for protecting the assets of your wallet s access to it. If you forget your recovery password/lose access to your cloud storage AND lose your device/delete the Binance app, you will not be able to access your Web3 wallet and Binance will not be able to recover it. There is no centralized service that can reset your password or recover the keys you have stored. This is a non-custodial wallet!
Export your keys: proof of non-custodial storage
A typical feature of non-custodial storage is the ability to export your private keys. With the Binance Web3 wallet, users not only have full control over their assets, but can also export their private keys if they want to move their assets elsewhere.
Traditional wallets often rely on passphrases – mnemonic phrases designed to restore access to all of a user's keys. Binance's web3 wallet uses multiparty computing (MPC) technology to increase security. In this configuration, private keys are separated and stored in different locations, eliminating the need for a passphrase.
Go to the "Emergency Export" feature. This feature is designed to allow users to immediately export their private keys. This shows Binance's commitment to keeping the Web3 wallet user in control at all times.
However, please note that after activating the "Emergency Export" feature and exporting private keys, the Web3 wallet becomes inaccessible. This is the final step - confirmation of the wallet's unwavering commitment to the principle of non-custodial storage.
Troubleshoot app access issues
We understand that since the Web3 wallet is linked to the user interface (UI) of the Binance app, some users may be concerned that in unprecedented scenarios where access to the Binance app may be blocked, the user interface cannot be interacted with, and accordingly , their Web3 wallet, can effectively invalidate their non-custodial holding.
Therefore, we are currently working to ensure that the "Emergency Export" feature is always available regardless of the status of the Binance app. At the heart of non-custodial storage is one indisputable truth: ownership of private keys, and this is what we strive to always provide for our Binance Web3 wallet users.
Result
The concept of non-custodial storage, exemplified by Binance's Web3 wallet, represents the very essence of the idea of blockchain and cryptocurrency – absolute control and ownership of your own assets. Recognizing the importance of private keys and the critical role they play in protecting digital assets, Binance Web3 wallet offers a unique and innovative approach to non-custodial storage through the use of multiparty computing (MPC) technology.
At the heart of Binance's commitment to autonomy and user control is the introduction of features such as the "Emergency Export" feature. While it is important to be aware of the inherent responsibilities involved in managing your own assets, Binance is taking steps to address potential issues and optimize the user experience.
This combination of innovation, security and user empowerment marks a significant step forward in the evolution of cryptocurrency wallets. With Binance, using Web3 is even easier.
Related articles
What is the Binance Web3 wallet and how does it work?
How to manage Binance Web3 wallethttps://www.binance.com/en/support/faq/how-to-manage-my-binance-web3-wallet-52fce2e54ea64891aa6fecb305d67f85
Why do I need a backup of my Binance Web3 wallet and how do I do it?
Disclaimer: Binance Web3 Wallet is an add-on product. You should determine if this product is right for you. Binance is not responsible for your access to or use of third-party applications (including features built into the Binance Web3 Wallet) and assumes no liability in connection with your use of such third-party applications, including transactions that you believe are inconsistent with your use. Please review the Binance Web3 Wallet Terms of Service carefully and always do your own research.
