Cryptocurrency exchange Binance has unveiled that it will soon be rolling out KYC in the form of a soulbound token (SBT) on the NBB Chain. This non-transferable NFT, will be available for use on applications on this blockchain by investors who have completed their identity verification.
Binance to roll out KYC linked to soulbound token
In a blog post on Monday, Binance revealed that the exchange is about to issue the first soulbound token (STB) on the BNB Chain. The STB, dubbed the Binance Account Bound (BAB), will be issued to users of the mobile app once they have completed their Know Your Customer (KYC) verification.
The first-ever Soulbound Token, Binance Account Bound (BAB), will be built on BNBChain
The innovation could pave the way for a flourishing Decentralized Society on BNB Chain.
Find out more about the exciting development here ⤵️https://t.co/gS4CmExrOp
– BNB Chain (@BNBCHAIN) August 1, 2022
The concept of SBTs was introduced this year by Vitalik Buterin. It is a special form of non-fungible token (NFT) that is linked to an address and therefore an SBT cannot be transferred. This technology is therefore perfectly suited to the field of decentralised digital identity (dID).
An SBT to navigate the NBB chain
With this soulbound token, Binance is one of the first to use this innovation on a large scale. The interest of this initiative lies in the fact that it can be used on the various applications of the BNB Chain.
Indeed, those who are used to decentralised finance protocols (DeFi) know how tedious it is to constantly redo one’s KYC. For example, the latter is imposed on launchpads, i.e. project launch platforms. This is because these platforms are, among other things, forbidden to residents of certain countries such as the United States. A KYC can be used to prove that you are not a resident of one of these countries.
The Binance Account Bound will allow this verification to be bypassed. Indeed, all the information will be represented in this SBT, which saves considerable time. To set up his BAB, the user will have the choice to link it to an existing address, or to create a new one especially for the occasion.
Through this experiment, Binance is offering just one of the many applications that will be found for soulbound tokens. It is certain that this technology will tend to develop in the years to come, to cover a multitude of domains.
