Binance had mentioned in early August the launch of Binance Account Bound (BAB), a token that will serve as an identifier for its users. Its usefulness is closely linked to the role of identifier that it is supposed to play in the context of Know Your Customer (KYC). The use of KYC standards occurs in finance to verify customers and know their risks and financial profiles. As a result, a lot of criticism has been fired at the project. Many purists feel that it fails to reflect a key part of the original crypto ideology, which is anonymity.
The Future of Blockchain Trade Security?
On Friday, September 8 at 09:00 UTC, Binance announced the availability of its token, the Binance Account Bound (BAB). It’s the very first soulbound token (SBT) of the BNB smart chain. It will function as an ID for its holder.
« Binance users who have completed KYC verification can use it as proof of identity. They will be able to show BAB tokens on the BNB smart chain as credentials, and participate in building multiple projects, as well as earn rewards. »explained a press release published on the website of the exchange.
For information, the BAB will only be accessible through Binance’s mobile app and users can revoke their BAB tokens. Furthermore, a verified Binance user ID allows the user to generate a BAB token only on BNB. The token can also be used on the Binance platform, within the framework of certain projects, indicates the exchange.
If the project is criticized, it is just as adored on social networks. Many in the crypto community feel that it will fix a lot of security issues. For others, it will pave the way for much-desired transparency in the industry.
Last month, Vitalik Buterin, the founder of Ethereum, made it known that this is the future of exchanges.
Faced with the difficulties linked to identification problems on the blockchain, Binance has thought of a solution that aims to be revolutionary. This is the BAB token that its users will be able to use. It will guarantee the security of the exchanges.
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