Binance has launched BAB, a soul-bound token on the BNB chain, as a decentralized solution to exchange KYC requirements. Soulbound tokens are NFTs that are not transferable between wallets.
Since NFTs cannot be traded, they can be used to identify wallet owners on the blockchain. Data linked to NFTs can be used to identify actions recorded by wallets, such as interactions with dApps and smart contracts.
This token, known as the Binance Account Bound (BAB) token, “provides proof of the wallet holder’s verified user status on Binance and allows it to be used in third-party protocols as well.” Ownership of BAB is optional for Binance customers, who can choose to complete her KYC checks via Soulbound Token or more traditional means.
Ownership of BAB tokens initially only indicates that the wallet owner has passed Binance’s KYC checks, and no additional user data exists within the token. However, in the future “Binance may issue other types of his BAB tokens”.
Commenting on the launch of BAB, Binance CEO Changpeng Zhao said:
“Soulbound Tokens will play a key role in the way web3 credentials work in a decentralized society…We foresee many use cases for BAB tokens and are committed to developing this revolutionary vision of a decentralized society.” , we will actively work with the community.”
The BAB token is not the first Souldbound token to be released, but it is the first on the BNB chain. Phala Network announced in June that he launched Soulbound Tokens, which associate attributes with specific in-game avatars. Idexo also recently announced Soulbound Tokens support within the web3 SDK allows developers to add tokens to their projects “with just one line of code”.
The NFT space is booming with innovation and forward momentum during this bear market. The need to find the true value proposition of non-fungible technologies is at the forefront of the NFT community, with ‘utility’ being the latest buzzword in the field.
Will Soulbound Tokens demonstrate the core utility of NFTs within the blockchain industry? Binance believes they have a place as they incorporate the technology into key regulatory requirements for their KYC business model.
