tl;dr
Changpeng Zhao, founder and former CEO of Binance, warns of Web2's security vulnerabilities, advocating for Web3 as a more secure future. He highlights risks in open-source software and past hacks, such as FTX and Meta's Horizon Wallet. While praising Web3's potential for enhanced security through...
**CZ Sounds Alarm on Web2 Security, Praises Web3 as the Future—But Binance’s New Inheritance Feature Leaves Him Unimpressed**
Changpeng Zhao, the founder and former CEO of Binance, has once again taken to Twitter to deliver a stark warning to the crypto world—and it’s not about market crashes or regulatory crackdowns. This time, CZ is sounding the alarm about the fragility of even the most secure Web2 applications, while hinting at a potential solution that could reshape the internet’s future.
**“Even Open-Source Software Is Not Safe These Days”**
CZ’s recent tweet struck a nerve: *“Even open-source software is not safe these days. Web3 will redefine security for Web2.”* The message is clear. Despite the reputation of open-source platforms for transparency and robustness, CZ argues that they’re increasingly vulnerable to cyber threats. He points to the growing sophistication of hacking techniques, from supply chain attacks to zero-day exploits, which can exploit even the smallest oversight in code.
His warning isn’t just theoretical. In 2022, the infamous **FTX collapse** exposed how centralized systems—despite their apparent security—can crumble under pressure. Similarly, **Meta’s Horizon Wallet** was hacked in 2023, leading to the theft of $1.5 million in crypto. CZ’s message is a call to action: the current model of Web2, which relies on centralized servers and opaque data management, is fundamentally flawed.
**Web3 as the Answer?**
CZ’s solution? A shift to **Web3**, the decentralized internet powered by blockchain, smart contracts, and crypto. He argues that Web3’s inherent transparency and immutability could eliminate many of the vulnerabilities plaguing Web2. For example, **decentralized apps (dApps)** on blockchains like Ethereum or Solana store data across thousands of nodes, making them far harder to hack. Smart contracts, which execute automatically based on predefined rules, also reduce the risk of human error or manipulation.
But CZ isn’t claiming Web3 is a panacea. *“We are still early,”* he admitted, acknowledging that the technology is in its infancy. Challenges like scalability, user adoption, and regulatory uncertainty remain. Yet, he’s confident that as Web3 matures, it could revolutionize how we interact with the internet—and how we protect our digital assets.
**Binance’s New Inheritance Feature: “UX Sucks”**
While CZ’s warnings are sobering, his recent comments on Binance’s latest feature reveal a more personal side. Earlier this week, he paid tribute to a member of the Chinese crypto community who had passed away, highlighting a new Binance service designed to help families access a deceased user’s crypto holdings.
The feature, which allows heirs to claim digital assets through a verified process, is a significant step for the industry. CZ confirmed he had tested it firsthand, but his feedback was blunt: *“Direct feedback (as a user), it (the UX) sucks. Needs improving.”*
The criticism underscores a growing tension in the crypto space: **innovation vs. usability**. While Binance’s initiative addresses a critical need—ensuring crypto isn’t lost forever—it’s clear that the execution falls short. Users have raised concerns about the complexity of the verification process, the lack of clear instructions, and the risk of fraud.
**What’s Next?**
CZ’s dual focus on security and user experience highlights the industry’s crossroads. On one hand, Web3 promises a more secure, transparent future. On the other, even the most well-intentioned innovations can fail if they’re not user-friendly.
For now, Binance’s inheritance feature is a work in progress. CZ’s candor—calling it a “suck” UX—may be uncomfortable, but it’s also a necessary step toward improvement. As for Web3, it’s a gamble: the technology could either become the internet’s next frontier or fade into obscurity.
One thing is certain: CZ’s warnings and experiments are shaping the crypto world, for better or worse. Whether you’re a developer, investor, or just curious, the stakes have never been higher.