Binance is getting ready for an upcoming upgrade of its wallet infrastructure. The exchange announced that it will retire selected deposit addresses and memos in batches based on the networks involved.
This retirement of addresses is part of a planned network address migration scheduled to take place in the third quarter of 2023. The migration involves transitioning to new addresses as Binance seeks to enhance its network infrastructure.
The recent wallet upgrade will impact a total of 40 cryptocurrencies This includes notable cryptocurrencies such as Bitcoin, Bitcoin Cash, Cardano, Polkadot, Dogecoin, Solana, Monero, and Litecoin, among others.
Binance Upgrades Wallet Infrastructure For Enhanced Security And Efficiency
Binance’s wallet infrastructure upgrade aims to offer users improved efficiency and enhanced fund security. By implementing these upgrades, Binance seeks to optimize the performance of its wallet system, ensuring smoother and more secure transactions for its users.
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In addition to wallet addresses, the platform will also deactivate memos, which are also referred to as destination tags. Memos, or destination tags, are additional address features used to identify the recipient of a transaction beyond just the wallet address.
In the case of centralized exchanges like Binance, where a single wallet address is used for multiple traders, the memo serves to distinguish and allocate funds to individual accounts.
Binance Set To Notify Users About The Changes
According to the announcement, Binance will send notifications to users who will be affected by the changes. The platform strongly encourages all account holders who are impacted to obtain a new wallet address and memo once they receive the notification.
Binance stated:
Only impacted users who receive notifications from Binance are required to obtain a new deposit address and memo — if applicable — before the expiry date. […] Old deposit addresses will expire upon obtaining a new address.
The exchange has emphasized that users who have not received an official notification from Binance should continue using their current deposit addresses.
However, the announcement clarifies that funds deposited into an expired address will not be lost. The only downside is that if users mistakenly deposit funds into an address that is no longer active or has expired, deposits made into expired addresses will not be automatically credited. In such cases, users will need to manually credit those deposits by accessing the transaction history page.
This means that users who have mistakenly deposited funds into an expired address will need to take additional steps to manually initiate the crediting process by using the transaction history page on the exchange’s platform.
Featured image from UnSplash, chart from TradingView.com
