Changpeng Zhao Advocates Web3 Solutions While Binance Develops Asset Inheritance Tool
Binance founder Changpeng Zhao warned the cryptocurrency community about growing security threats in Web2 applications on September 9, 2025. According to Coinpedia, CZ stated that "Web3 will redefine security for Web2" in a post on X. He emphasized that even trusted and open-source software is no longer safe from attackers.
CZ believes Web3 technologies like smart contracts and decentralized applications can address many Web2 weaknesses. He argued that blockchain can safeguard digital assets and sensitive data by removing vulnerable points that attackers exploit. The former CEO admitted Web3 is still in early stages but views it as a long-term security solution.
Binance is simultaneously testing a crypto inheritance feature that allows families to access deceased users' holdings. CZ acknowledged the current user experience "sucks" and requires significant improvement before launch. The feature functions but needs better usability for bereaved families accessing their loved ones' cryptocurrency assets.
Why This Matters
CZ's security warning comes as supply chain attacks have doubled in recent months, according to Cyble. Their research shows software supply chain attacks averaged 26 incidents monthly since April 2025, twice the rate from early 2024 through March 2025. IT and technology companies face the highest risk as prime targets for threat actors.
The inheritance feature addresses a critical gap in cryptocurrency estate planning. An estimated $280 billion in Bitcoin remains permanently lost due to forgotten passwords and deceased holders. Without proper inheritance mechanisms, families cannot access digital assets when loved ones pass away. Binance's solution could prevent similar losses for millions of exchange users worldwide.
Recent supply chain vulnerabilities validate CZ's concerns about Web2 security. Major attacks targeting npm packages, corporate systems, and open-source libraries demonstrate how trusted software can become attack vectors.
Industry Implications
The cryptocurrency industry increasingly recognizes digital asset inheritance as a mainstream need rather than niche concern. HeirSearch reports that 62% of Millennials now allocate at least one-third of their wealth to cryptocurrencies. A recent US executive order directs regulators to expand cryptocurrency access in 401(k) retirement plans.
Traditional Web2 security models face mounting pressure as cybercriminals become more sophisticated. U.Today confirms CZ's position that Web3 technologies could strengthen overall internet security. Smart contracts and blockchain-based identity systems offer alternatives to centralized authentication methods that frequently suffer breaches.
However, Web3 adoption remains limited by technical complexity and regulatory uncertainty. Integration challenges prevent immediate migration from existing Web2 infrastructure. The transition requires standardized protocols and user-friendly interfaces before widespread implementation becomes feasible.
Further Reading
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