‘Bybit’s Keyless Wallet aims to bolster the security of wallet services’

In the past year, competition within the centralized exchange (CEX) track has witnessed a new trend.

With the emergence of various narratives such as Inscription, BRC-20, and Re-Staking, wallet-centered asset management services have become a new battleground among CEXs.

Major CEXs have successively entered the fray, engaging in fierce competition.

Emily Bao, Head of Partnerships and Marketing at Bybit Web3, shared insights with Invezz ranging from Bybit’s strategy in the Web3 arena to CEX competition within this realm, as well as market trends and future prospects for Web3 development.

Bybit recently launched Keyless Wallet. What sets it apart from Web3 Wallet?

Bybit’s Keyless Wallet has now been officially launched, aiming to bolster the security of wallet services through multi-party computation (MPC) technology.

Presently, all users can utilize Bybit’s private keyless wallet to store private keys across various locations, thereby enhancing security while retaining full control over their assets and private keys.

Furthermore, Bybit’s private keyless wallet streamlines interaction with decentralized networks, to provide a new, convenient, and user-friendly experience for individuals of all proficiency levels.

From a user’s standpoint, opting for Bybit’s private keyless wallet confers immediate advantages, including convenience and ease of use – obviating the need for mnemonic words, thereby simplifying operations; enhanced safety and peace of mind – as private keys are distributed across different locations to bolster security; self-hosted.

This ensures the user retains complete control over their private keys and assets; audit assurance – having undergone independent audit verification by CertiK.

The top exchanges will directly become wallets in what seems to be the trend for the past two years. Why is it so?

Generally speaking, there are three primary reasons why exchanges are prioritizing the development of wallets.

Firstly, it’s about seizing the gateway to Web3.0: In the era of Web3.0, users are expected to have greater control over their own data.

Wallets, as essential infrastructure for Web3.0, will serve as the entry point for users to access the Web3.0 world.

By establishing leading wallet solutions, exchanges can strategically position themselves at the forefront of Web3.0 and pave the way for future growth.

Secondly, there’s a focus on enhancing user retention and fostering exchange ecosystems: Wallets serve as crucial tools for users to manage their crypto assets, acting as a vital link between exchanges and users.

By integrating wallet functionalities, exchanges can offer more streamlined asset management services, thereby enhancing user engagement and attracting more participants into their exchange ecosystems.

Lastly, there’s the imperative to bolster security: As centralized repositories of digital assets, exchanges have long been targets for cyberattacks.

By integrating wallet features, exchanges can adopt decentralized storage mechanisms for users’ assets, thereby enhancing security measures and mitigating risks associated with centralized storage.

It has been suggested that “for exchanges, the business volume of the wallet side will surpass that of the trading side.” Do you agree wallets will exceed trading volume for exchanges in future?

In Bybit’s perspective, with the evolution of Web3.0, the wallet business is poised for substantial growth in the future, although surpassing trading volume will require time and favourable conditions.

In the long run, competition within the wallet and Web3 sectors is set to intensify, potentially emerging as a new growth catalyst for exchanges.

On one hand, trading business competition is fierce, with profit margins constrained. As the number of exchanges proliferates, competition in the trading realm intensifies, fees dwindle, and profit margins shrink.

Conversely, Web3.0 represents the future trajectory of the cryptocurrency industry. Wallet and Web3 sectors epitomize new growth avenues.

Establishing a presence in these sectors enables exchanges to capitalize on Web3.0 opportunities and formulate new profit models.

Bybit remains committed to bolstering investment in the wallet and Web3 sectors, furnishing users with superior services, and fostering the advancement and mainstream adoption of Web3.0.

Can you provide a brief overview of Bybit’s current accomplishments in the Web3 domain from a statistical standpoint? For instance, the ecosystems covered, user accumulation figures, etc.

Bybit’s hosted wallet user base has surpassed 1 million.

Additionally, we have launched a comprehensive Bitcoin and EVM inscription market, instituted innovative gamified reward mechanisms such as Airdrop Arcade, and actively collaborated with the Solana ecosystem.

Our NFT initiative has also yielded commendable outcomes, elevating artist earnings and broadening fan bases.

The two NFT collectibles launched in partnership with Jack Butcher and Snowfro have performed admirably in the secondary market.

Notably, Jack Butcher’s jointly issued Trademark, initially priced at 0.069 ETH, has witnessed secondary prices soar to 0.35 ETH, with transaction volumes exceeding 3,000 ETH.

It appears Bybit excels in cross-border cooperation traffic strategies, exemplified by collaborations with Oracle Red Bull Racing. How effective are these cross-border collaborations?

Bybit has actively explored cross-border collaboration possibilities, with the aim of reaching a broader user base, enhancing brand visibility, and delivering diverse experiences by partnering with renowned brands and figures across different domains.

Our collaboration with Oracle Red Bull Racing has yielded remarkable outcomes.

This partnership has augmented Bybit’s global brand awareness, particularly within the F1 enthusiast community.

Beyond associating Bybit’s brand with positive attributes such as high performance and competitive spirit through physical advertising and social media engagement, it has also provided exclusive F1 viewing experiences and perks to Bybit users, augmenting user loyalty.

Looking ahead, Bybit will continue to explore diverse cross-border collaboration opportunities, promising more surprises for users.

The development of Web3 is still in an early stage, and there are still many shortcomings compared to the mature Web2 system. What factors limit the further breakthrough of Web3?

Web3 is still in its early development stage. Compared to the mature Web2 system, three primary limiting factors exist.

Firstly, there is a high technical threshold. Underlying technologies like blockchain and smart contracts entail steep learning curves, hindering widespread adoption among average users.

Secondly, user experience remains subpar. Most existing Web3 applications are still in their infancy, with cumbersome operations and poor user-friendliness, thereby impacting user retention.

Thirdly, security concerns loom large. The decentralized nature of blockchain technology has brought security issues to the forefront, necessitating concerted efforts to address issues like hacker attacks and wallet security.

As a terminal service provider, Bybit remains committed to the ethos of Web3 openness, fostering collaboration to deliver the most comprehensive and convenient product services and an engaging Web3 experience.

On one hand, we furnish straightforward and user-friendly Web3 products and services to lower entry barriers.

Concurrently, we actively collaborate with regulatory bodies to promote the healthy development of the Web3 industry, instituting compliance mechanisms and formulating industry self-regulatory standards.

Bybit is confident that with technological advancements, optimized user experiences, resolution of security concerns, and a clear regulatory framework, Web3 will witness broader applications and evolution.

Bybit will continue to serve as a terminal service provider, offering users secure, convenient, and dependable Web3 products and services, contributing to the proliferation and mainstream adoption of Web3.

CEXs have endeavored to align with the more open and decentralized Web3 mission. How does Bybit strike a balance between its core centralized trading business and the relatively decentralized DeFi business?

Bybit actively advocates unity and open collaboration within the industry, transcending traditional barriers to competition.

Together, we foster a strong sense of community and continue to drive innovation. Openness and co-building form the bedrock of Bybit Web3.

Through code openness, we aim to welcome more enthusiasts to collectively shape the future of Web3. This collaboration transcends mere strategic maneuvering; it underscores our commitment to advancing the entire Web3 ecosystem.

The post 'Bybit’s Keyless Wallet aims to bolster the security of wallet services' appeared first on Invezz