At first, the Binance Account Bound token will be used as a KYC verification credential.
Binance Account Bound will also be available for third party protocols.
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Bitcoin (BTC) and cryptocurrency exchange Binance announced the launch of its first Soulbound (SBT) token, Binance Account Bound (BAB), built on the BNB Smart Chain blockchain. The inclusion of the token is part of the exchange’s efforts to offer effective solutions for the decentralized society, this time in terms of KYC.
Binance Account Bound will have several features in the future, but initially will be used to prove the KYC verification (Know Your Customer) of the users of a decentralized society (DeSoc).
Soulbound are a new concept, promoted by Vitalik Buterin, the creator of Ethereum. SBTs are non-transferable and non-fundable tokens designed for the decentralized society. They have no value per se, rather, they are tokenized representations of characteristics or traits of a person or entity.
Binance Account Bound: SoulBound token to prove KYC verification
BAB is a pilot project, and at first the token will only be accessible through the exchange’s mobile app. This will be an optional feature for those users who have completed KYC verification and who wish to mint BAB on Binance wallets.
Changpeng Zhao, Founder and CEO of Binance, commented:
Soulbound tokens will play a significant role in how Web3 credentials will function in a decentralized society. This will transform the way we connect, as blockchain technology will give society greater authority to determine how communities interact based on their credentials or affiliations. We foresee numerous use cases for the BAB token and will actively collaborate with the community to develop this revolutionary vision of decentralized society.
Changpeng Zhao, Founder and CEO of Binance.
Binance Account Bound tokens will serve as credentials. Although at the beginning the BABs will indicate if the user has performed the KYC verification, Binance plans to expand the functions of this Soulbound. Decentralized applications can use BAB as a security tool.
BAB will be a type of Binance ID that will be available to third-party protocols, and which they can use for multiple purposes, such as NFT airdrops, voting, or bot prevention.
Soulbound is in its infancy, so there are many possibilities for this type of token, and it is only a matter of time before more useful features are discovered that will contribute to the development and expansion of Web3.
About SoulBound Tokens
Soulbound tokens (SBT) were a proposal presented in early 2022 by Vitalik Buterin together with E. Glen Weyl and Puja Ohlhaver. It is a new type of credential or tokenized identity that is non-transferable.
Soulbound are not designed to have value, and cannot be transferred to other wallets like bitcoin or ether. SBTs are issued and stored in special wallets known as souls. In turn, the souls can be associated with individuals or institutions. A single person or institution can have several souls, each for a different purpose.
These tokens may change the way members of metaverses relate and communicate with each other, and could represent a significant advance for Web3. But it is a recent and underdeveloped concept, which means that there is still a long way to go.