Binance released BAB, a Soulbound Token on the BNB Chain, as a decentralized option to the KYC requirements for the exchange. Soulbound Tokens are NFTs that are non-transferrable in between wallets.
The failure to trade the NFT enables it to be utilized to recognize the wallet holder on the blockchain. Data connected to the NFT can be used to determine tape-recorded actions by the wallet, such as engaging with a dApp or smart contract.
The token is to be called the Binance Account Bound (BAB) token and “will certify the wallet owner’s verified user status on Binance and will be also available for use by third-party protocols.” The ownership of BAB will be optional for Binance clients, who will be able to select whether to finish a KYC check through the Soulbound Token or more standard methods.
Ownership of a BAB token will at first just suggest that a wallet owner has actually passed the Binance KYC check will no extra user information existing within the token. However, in future “Binance may issue other types of BAB tokens” with extra performance and usage cases.
Regarding the launch of BAB, the Binance CEO, Changpeng Zhao, commented,
“Soulbound Tokens will play a significant role in the way web3 credentials will work in a Decentralized Society… We foresee numerous use cases for the BAB token, and we will actively collaborate with the community to develop this revolutionary vision of decentralized society.”
The BAB token is not the very first Souldbound Token to be launched, however it is the very first on the BNB Chain. Phala Network revealed in June that it had actually released Soulbound Tokens that connect characteristics to particular in-game avatars . Idexo likewise just recently revealed assistance for Soulbound Tokens within its web3 SDK enabling designers to include the tokens to tasks “with just 1 line of code.”
The NFT area is one alive with development and forward momentum throughout this bearishness. The requirement to discover the real worth proposal for the non-fungible innovation is at the leading edge of the NFT community with ‘utility’ being the most current buzzword in the area.
Will Soulbound Tokens display a core energy of NFTs within the blockchain market? Binance certaintly thinks they belong as it embeds the innovation into a core regulative requirement for its company design in KYC.
