Binance officially announced the launch of Binance Account Bound (BAB) Token, which aims to address identity verification in the Decentralized Society (DeSoc). BAB was initially designed only to certify verified user status on the platform, but will later be added more functions, according to the exchange.
Users can mint BAB directly on their Binance wallets. In a nutshell, BAB token will only be available to users who have completed their KYC on Binance. Users who have not completed their KYC and are not on Binance will not be able to mint tokens. Since each individual is unique, BAB is non-transferable.
In addition, BAB is also considered a Binance identity and can be verified by third-party protocols. This feature helps to create safer as well as eliminate popular problems related to bots, airdrops, voting, etc. Unlike traditional cryptocurrencies like Bitcoin, BAB is solely for online identification purposes. Overall, BAB is similar in nature to Soulbound Token (SBT), which was proposed by Ethereum founder Vitalik Buterin. However, Binance is the first exchange that allows users to mint tokens representing users’ identities.
BAB was introduced as an experimental project and is only accessible via the mobile app. “As DeSoc use cases evolve, Binance may issue other types of BAB tokens in the future”, the announcement noted. Binance CEO Changpeng Zhao indicated that SBT will play a key role in the way Web3 credentials work in DeSoc: “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”.
He also added that Binance will join the community to discuss new use cases for BAB to develop this revolutionary vision of decentralized society. BAB launched in the context of Binance losing up to 90% of customers and billions of USD after the exchange adopted obligatory KYC verification in August 2021. But Binance declined to comment on this.
BAB actually is not the first Soulbound Token to be launched, but the pioneer on BNB Chain. Phala Network previously released SBT that tied to specific game avatars. Idexo also recently announced support for Soulbound Token, allowing developers to add the token to projects with a simple line of code.
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