By Nathan Ferguson
The crypto exchange giant, Binance, is stepping in the direction of decentralized identity instruments by introducing its earliest token structure to validate the consumers’ position on the venue. On Monday, Binance declared to launch Binance Account Bound (BAB) token, focusing on coping with the identity-related matters in the decentralized society (DeSoc).
BAB Token of Binance to Accomplish KYC Consumer Credentials
As compared with conventional crypto assets such as Bitcoin (BTC), the launch of the BAB token is exclusively being carried out to deal with online identification. The respective token is linked to a form of Soulbound Tokens (SBTs). SBTs, which are proposed on the behalf of Vitalik Buterin (the co-founder of Ethereum), are non-financialized and non-transferable tokens structured for DeSoc.
As per the declaration of Binance, the status of the BAB token is that of the initial SBT that is being released on the BNB Smart Chain. The target of the token is the diverse utilities related to DeSoc however it will just fulfill the purpose of Know Your Customer (KYC) consumer credentials at Binance. The respective token will particularly be presented on the wallets for the indication that the KYC verification has been approved by their owners on Binance.
The role of the token is that of a Binance identity while the 3rd-party protocols will be capable of utilizing it to validate BAB tokens to fulfill several purposes, taking into account preventing bots from airdropping NFTs, voting as well as the rest of such things, as mentioned by Binance. The platform discloses that as evolution is taking place in the use cases of DeSoc, Binance may release the rest of the BAB token forms in the coming times, as noted by the declaration.
SBTs Are Crucial in Web3 Functionality, Says CZ
The launch of the BAB token is at the moment in its pilot phase and it will just be available through the mobile application of Binance, permitting the consumers to mint BAB straightly on the Binance wallets in their possession. Changpeng Zhao – the CEO of Binance – revealed that a crucial role will be played by SBTs in the working of the Web3 credentials in a DeSoc.
He added that the respective will evolve the connections done by the consumers, as an enhanced authority will be provided to the society by the blockchain technology to control the interaction of the communities based on the affiliations or credentials thereof.