Binance Launches Soulbound Tokens for Verified Users
Binance, the world’s largest crypto exchange, has launched its first-ever Soulbound Tokens (SBT) dubbed Binance Account Bound (BAB).
What Are Soulbound Tokens (SBT)?
Soulbound Tokens are unique tokens that represent an individual’s credentials such as birth, educational, or marriage certificates.
These blockchain-based tokens are accessible to the public and may also prove the owner’s involvement in any activity or commitment to an organisation. Unlike other digital assets, SBT cannot be transferred to another person.
The idea of SBTs was first mentioned by Ethereum founder Vitalik Buterin after which he co-wrote a whitepaper with E. Glen Weyl and Puja Ohlhaver, fully explaining the concept.
Binance Rolls Out SBTs for User Certification
According to a press release, Binance’s Soulbound tokens would serve as credentials for users who have passed the Know Your Customer (KYC) on the exchange.
Binance Account Bound (BAB) is still in its trial phase and is currently available to Binance mobile app users. The tokens can be minted on old or new wallets and will also be accessible to third-party protocols.
Commenting on the development, Changpeng Zhao (CZ), founder and CEO of Binance, said:
“Soulbound Tokens will play a significant role in the way web3 credentials will work in a Decentralised Society. This will transform how we connect, as blockchain technology will give society greater authority to determine how communities interact based on their credentials or affiliations.”
Other Use Cases for BAB
Although BAB’s primary use case would be to serve as a certification to verified Binance users, the exchange outlined other utilities for its Soulbound tokens.
Decentralised applications (dApps) and NFT protocols may use BABs for different purposes like airdropping to addresses with BAB tokens or allowing minting from BAB addresses to prevent bot manipulations, among others.
The release also noted that third-party protocols could verify BAB tokens for use cases such as airdropping NFTs, finding and averting bots, and quadratic voting in Decentralised Autonomous Organizations (DAOs).
Furthermore, Binance plans to introduce other types of BAB Tokens as Decentralised Society (DeSoc) use cases emerge.
“We foresee numerous use cases for the BAB token, and we will actively collaborate with the community to develop this revolutionary vision of decentralised society,” CZ said.
~ By William A. Frederick ~
