According to Changpeng Zhao, better known as CZ and former Binance CEO, crypto wallets should function as the primary boundary for blockchain interactions.
The crypto exchange model should prioritize its core functions for professional market participants and liquidity providers instead of typical users.
CZ encourages users to rely on wallets instead of exchanges
Users commonly confuse Binance and comparable exchanges with wallet storage systems according to remarks made by Binance CEO CZ during his discussion with Trust Wallet CEO Eowyn Chen. Users need Trust Wallet and other cryptocurrency wallets such as Coinbase and Binance to utilize blockchain functionality and administer their funds. CZ states that deep liquidity traders are the primary long-term market segment that exchanges can target because exchanges are evolving to serve more purposes than storage.
These cryptocurrency wallets provide users with four essential functions, including wealth management solutions, remittance services, DeFi capabilities, and digital identity management solutions. Chen observed wallet popularity growth through her comments at the event when she announced 200 million Trust Wallet downloads. She revealed that finance registration users prefer wallets over other options since seventy-seven percent of them selected this decentralized solution.
The growing role of crypto wallets in digital identity
According to CZ, crypto wallets possess the potential to act as a means of storing digital identity. Governments implementing blockchain identity solutions require decentralized identification systems, making wallets necessary foundation components for achieving this goal. According to CZ he viewed crypto wallets like web browsers so users should access and control all digital credentials through a single platform.
Chen developed this concept by designing digital certificates and identity authentication systems that wallets would integrate in the coming years. The direction of wallets will transform their importance in educational and public service settings along with secure online activities.
Wallets and Exchanges Serve Different Purposes in a Maturing Industry
The distinction between wallets and exchanges is becoming more evident as the crypto industry continues to evolve. Exchanges will likely remain essential for professional traders and liquidity providers, while wallets will transform into multifunctional tools for financial management and identity verification.
Although CZ no longer leads Binance, he remains involved in blockchain initiatives through YZI Labs, formerly known as Binance Labs, and the Giggle Academy. His views highlight a significant movement in the industry, emphasizing the growing importance of crypto wallets in everyday blockchain interactions.