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Custody Services Are Becoming Increasingly Important In the Crypto And Blockchain Sector This is due to a number of reasons, but the biggest one could very well be the seemingly overwhelming number of attacks, hacks and exploits

By Anirban Roy

Opinions expressed by Entrepreneur contributors are their own.

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As the crypto and blockchain industry continues to expand at an unprecedented rate, many believe that there is an increasingly critical need for a reliable and effective custody service. This is due to a number of reasons, but the biggest one could very well be the seemingly overwhelming number of attacks, hacks and exploits which have unfortunately become commonplace in this sector and have resulted in the loss of hundreds of millions of dollars. As such, LABEL Foundation has announced a brand new integration with Binance Custody so as to provide customers with a safe and dependable way of storing their crypto assets. LABEL Foundation's $LBL tokens will now be supported with Binance Custody's top-quality cold storage solution, which is widely considered to be very secure and is utilized by countless individuals as well as corporate investors worldwide.

What is LABEL Foundation?

LABEL Foundation is an NFT infrastructure constructed atop the Ethereum Network, powered through the $LBL utility and governance token with a unified purpose to set up an honest profit-sharing environment with the permissionless integration of IP rights. Both OPENTRACK and Clesson (the operating company behind the initiative) have also joined LABEL and hope to assist it in transforming the music industry and bring it to the Web 3.0 era.

In a nutshell, LABEL offers a decentralized P2P incubating platform to spend money on world-caliber entertainment education content material via the DAO voting system so as to permit participants to obtain earnings via the NFT shareholding mechanism.

Understanding Binance Custody

Before going any further, it is also important to understand Binance Custody is. Binance Custody is the world's biggest crypto exchange's institutional-level custody solution. With support for nearly 500 digital assets, institutional users can take advantage of bank-grade security when managing their digital assets with Binance Custody.

Moreover, Binance Custody is among the top custody services in the world for digital assets. This is because the service adheres to all of the various regulations (which is something that Binance CEO continues to prioritize for all aspects of the exchange), has insurance from Arch Syndicate 2012 at Lloyd's of London that is also mediated via the world's biggest independent insurance brokerage, LEAP (Lockton's Emerging Asset Protection), and has been integrated with Binance's ecosystem in a seamless and efficient fashion. Binance Custody is also fully compatible with both Android and iOS devices.

What do LABEL's customers get out of the new partnership?

Now that we know what both LABEL Foundation and Binance Custody are, let's discuss the different benefits of the partnership. Firstly, Binance Custody grants completely customizable solutions and a multi-permission scheme which improves user experience and simplifies the entire process, thereby bolstering security and putting firmly investors in control of their assets.

Secondly, Binance Custody utilizes safe multi party computing (MPC), in addition to offline key-sharing storage and threshold signing schemes in order to truly "decentralize' the process of fund management. All of this may seem a bit complicated, but it is nevertheless vital to ensure that users' digital assets are kept safe at all times.

Also, Binance Custody is not just restricted to preventing hacks or stopping fraudulent activities from occurring, as the service also features delegation of authority. What this means is that huge losses can be avoided by sharing access with the custodian which greatly enhances security and prevents losses from happening even if an investor forgets a password or their account gets hacked.

What made LABEL pick Binance Custody?

As previously mentioned, custody services are becoming increasingly important in this industry, and there is certainly no shortage of options available to choose from in this day and age. Still, LABEL went with Binance Custody due to the aforementioned features and services provided by it and because there is seemingly no other service which comes close to the level of asset and investor protection and overall security as Binance Custody, at least in LABEL Foundation's opinion.

In the words of CSO Hyung Soon Choi, we could hence very well be witnessing a budding relationship being formed between LABEL and Binance Custody and the overall exchange itself. Changpeng Zhao, the CEO of Binance, has stated on multiple occasions that safety and adherence to regulations should be the top priority of the industry going forward as the crypto sector cannot survive otherwise. With such a mindset, it became very easy for LABEL Foundation to pick Binance Custody in order to provide customers with the abovementioned secure cold storage solution.

Note: Investment in cryptocurrency and crypto assets is subject to financial risk and readers should do their own due diligence. Entrepreneur Media does not endorse any such investment.

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