Binance launches BAB Soulbound tokens in order to handle wallet holders’ KYC, on the BNB chain.
As a decentralized response to the KYC requirements for the exchange, Binance introduced BAB, a Soulbound Token on the BNB Chain. NFTs, or Soulbound tokens, are not transferable across wallets.
The NFT can be used to identify the owner of the wallet on the blockchain even though it cannot be traded. To identify recorded actions by the wallet, such as engaging with a dApp or smart contract, data connected to the NFT can be used.
The Binance Account Bound (BAB) token, which “will confirm the wallet owner’s verified user status on Binance and will also be available for usage by third-party protocols,” is the name of the cryptocurrency. Customers of Binance will be able to opt-out of owning BAB by deciding whether to complete a KYC check using the Soulbound Token or more conventional methods.
Owning a BAB token will initially only signify that a wallet holders has passed the Binance KYC process, and the token will not include any more User information. But in the future, “Binance may issue new sorts of BAB tokens” with more features and applications.
Changpeng Zhao, CEO of Binance, made the following remarks about the introduction of BAB:
“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.”
Binance launches Soulbound tokens for the first time on the BNB Vhain, while it is not the first to be released. In June, Phala Network said that it had introduced Soulbound Tokens, which link characteristics to certain in-game avatars. Additionally, Idexo has disclosed support for Soulbound Tokens within its web3 SDK, enabling developers to incorporate the tokens into projects “with just 1 line of code.”
During this weak market, the NFT sector is one that is thriving with innovation and forward momentum. The NFT community is focused on identifying the genuine value proposition for the non-fungible technology, with “utility” being the most current buzzword in the industry.
Will Soulbound Tokens demonstrate an essential NFT function in the blockchain sector? The fact that Binance has integrated the technology into a crucial regulatory need for its business model, KYC, indicates that it firmly believes it has a place in the market.
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