Binance Introduces Soulbound Token (SBT) KYC on BNB Chain

Cryptocurrency exchange Binance has revealed that it will soon roll out KYC in the form of soulbound token (SBT) on the BNB chain. This non-transferable NFT can be used on the applications of this blockchain by investors who have completed their identity verification.

Binance will implement KYC linked to a soul-bound token

In a blog post, Binance revealed on Monday that the exchange was set to issue the first soulbound token (STB) on the BNB chain. This one called Binance Account Bound (BAB)will be issued to users of the mobile application once their Know Your Customer (KYC) verification has been completed.

The concept of SBTs emerged this year under the direction of Vitalik Buterin. It is a special form of non-fungible token (NFT), i.e associated with an address and an SBT cannot therefore be transferred. This technology is therefore perfectly suited to the field of decentralized digital identity (dID).

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An SBT to browse the BNB chain

With this soul-bound token, Binance is part pioneers to use this innovation on a large scale. The whole point of this initiative is that it will be applicable to the various applications in the BNB chain.

Indeed, regular customers of decentralized finance (DeFi) protocols know how tedious it is to constantly redo your KYC. For example, the latter is special imposed launch pads, namely project launch platforms. And with good reason, the latter is prohibited, among other things, for residents of certain countries such as the United States. A KYC then makes it possible to prove it does not reside in one of these countries.

Binance Account Bound will thus allow this verification to be bypassed. In fact, all information will be represented in this SBT, which saves considerable time. To configure his BAB, the user will have the choice between linking it to an existing address or creating a new one especially for the occasion.

Through this experiment, Binance offers just one of the many application cases that will be found for soul-bound tokens. It is certain that this technology will tend to it develop in the coming yearsto cover a multitude of fields.

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Source: BNB Chain Blog

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