Today, the largest cryptocurrency platform in the world, Binance, is releasing the Binance Account Bound (BAB) token, which is a soul-bound token that will be used as evidence of identification for Binance users who have passed KYC verification, as stated in the most recent blog post published by the company.
On BNB Chain, users will have the ability to mint BAB tokens as identification credentials, engage in the construction of different projects, and receive incentives for their efforts.
The BAB token, in comparison to typical crypto assets such as Bitcoin (BTC), is used only for the purpose of online identity and is classified as a form of Soulbound Tokens (SBT). SBTs are non-transferable, non-financialized tokens that were intended for the Decentralized Society, often known as DeSoc platform and were proposed by Vitalik Buterin, the founder of Ethereum.
The innovative concept of a decentralized society will be developed by Binance in conjunction with the community, according to the company’s CEO, Changpeng Zhao a.k.a “CZ” who said that the company would work together with the community to devise new applications for the BAB coin.
In his words:
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.
In his report, Buterin outlined a number of other applications for SBTs, including university degrees, education certificates, and web3 credit ratings, among other potential uses.
“As we begin to explore how credentials will function in Web3, whether it be in the form of a verifiable skillset or an earned title, further use cases for the BAB token will arise. This sense of accountability paves the way for a more efficient decentralized community and space.”
