The debate over the legitimacy of Know Your Customer (KYC) is raging. While some feel it betrays the ideology behind cryptocurrency, key players in the crypto industry are stepping up to the plate. The latter think that it could revolutionize the decentralized society and bring a lot of added value. It is in this context that Binance announced the launch of a new token that will serve as an identifier for its users.
BAB, the Binance token that will serve as an identifier for its users
1er August, Binance, the cryptocurrency exchange, announced the launch of its Binance Account Bound (BAB) token on the BNB Smart Chain. It is a Soulbound Token (SBT) which is intended for online identification purposes. The token acts as a social identity on Binance. According to the details of the platform, the new token will be specifically displayed on wallets to indicate that the account owner has passed KYC verification on Binance.
The BAB, which is the first token deployed on this Smart Chain, is intended for many uses in the future, especially on third-party protocols. But for the moment, it will only play an identifying role within the framework of the Know Your Customer (KYC) concept.
It is being introduced as a pilot project and will only be accessible through Binance’s mobile app, allowing users of the platform with KYC permission to mine their BAB directly into their wallets.
“It will transform the way we connect, as blockchain technology will give society greater authority to determine how communities interact based on their credentials or affiliations”said Binance CEO Changpeng Zhao.
It should be noted that SBTs (Soulbound Token) such as BABs are non-transferable and non-financialized tokens designed to solve challenges related to identification in the decentralized society (DeSoc). For Vitalik Buterin, founder of Ethereum, they represent the future of NFTs and secure exchanges.
By launching its BAB token, Binance certainly aims to further secure and optimize transparency on the platform.
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