Binance introduces the Soulbound Token (SBT) KYC on the BNB chain

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

Binance will distribute KYC linked to a soulbound token

In a blog post, Binance Monday revealed that the exchange would issue the first soulbound (STB) token on the BNB chain. This, called the Binance Escrow Account (BAB)will be released to mobile application users, once the Know Your Customer (KYC) verification is completed.

The SBT concept made its appearance this year under the guidance of Vitalik Buterin. It is a special form of non-fungible token (NFT). 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 navigate the BNB chain

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

In fact, regular customers of decentralized finance (DeFi) protocols know how boring it is to constantly redo your KYC. For example, the latter is particularly imposed on the launch pads, or rather platforms for launching projects. And for good reason, the latter are, among other things, off-limits to residents of some countries like the United States. A KYC then makes it possible to prove it he does not reside in one of these countries.

The Binance Account Bound will then allow you to bypass this verification. In fact, all information will be represented in this SBT, which saves a lot of time. To configure their BAB, the user can choose whether to connect it to an existing address, or create a new one specifically for the occasion.

Through this experiment, Binance offers only one of the many application cases that will be found for soulbound tokens. It is certain that this technology will tend to do so develop in the years to comein order to cover a multitude of fields.

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Source: Blog of the BNB chain

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