Binance presented the new Web3 wallet, i.e. a hybrid custodial wallet, in which the traditional seed phrase is divided and shared into multiple parts through Multi Parties Computation.
It will be accessible from the exchange's mobile app and will take an integral part of the Web3 framework.
Therefore, it is not a classic non-custodial wallet, as the private keys are "shared", thus leaving BINANCE itself to protect the wallet with 3 shares divided between the CeX, user device and a recovery key on a personal cloud (for access the wallet, only the last two will be used).
The advantage is the presence of integrated systems such as Binance Bridge which allows you to transfer tokens easily between the various chains and also an "airdrop area", for exclusive launches of coins that exploit a direct channel, to which the various services we already know are added such as staking, swap tokens cross-chain, earn and others.
CZ had announced that this wallet was an important step forward towards "financial freedom" but, in my opinion, it should be read with great awareness.
Yes, the problem of losing the seed phrase is eliminated (similar matter with the new Ledger "Recover" subscription that I talked about in another article ), but in any case you are not really the owner of the wallet as the funds inside it can obviously also being suspended in extreme cases, therefore in the control of another (Binance).
https://www.publish0x.com/blogging-crypto/ledger-recover-are-your-crypto-at-risk-xyqkxlx
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