Binance Introduces Soulbound Token (SBT) KYC on BNB Chain

Cryptocurrency exchange Binance has revealed that it will soon be rolling 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 eliminate KYC linked to a soulbound 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, named the Linked Binance Account (BAB)will be issued to users of the mobile application, once their Know Your Customer (KYC) verification has been completed.

The concept of SBTs made its appearance this year under the leadership of 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 decentralized digital identity (dID).

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An SBT to browse the BNB Chain

With this soulbound token, Binance is part of pioneers to use this innovation on a large scale. The whole point of this initiative lies in the fact that it will be usable on the various applications of the BNB Chain.

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

The Binance Account Bound will thus allow this verification to be bypassed. Indeed, all the information will be represented in this SBT, which saves considerable time. To configure 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 offers only one of the many use cases that will be found for soulbound tokens. It is certain that this technology will tend to develop in the years to cometo cover a multitude of areas.

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Source: BNB Channel Blog

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