Key Takeaway
- Binance announced that it is ready to launch Binance Account Bound (BAB).
- Binance intends to launch this first as a pilot project.
Binance has announced that it is ready to launch Binance Account Bound (BAB). Binance Account Bound (BAB) is the inaugural Soulbound Token (SBT) modeled on the BNB Smart Chain. Binance intends to launch BAB primitively as a pilot study, which is also known as a pilot project. What does this really mean? A pilot study is importantly a small version of a project that evaluates the feasibility of launching the project on a grand and huge scale.
A pilot study ensures that stakeholders can access the viability of a project and determine if the project can go fine on a large scheme. It reduces and helps to minimize risks. Binance Account Bound (BAB) will only be made available on the Binance mobile app. The creation of BAB is mainly to operate as a digital identification for Binance.
It is going to be an assisting attribute that will ensure Binance customers, in alliance with Know-your-customer (KYC), get to mint their BAB straight in their wallets while they joggle with other affairs on the platform.
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For example, BAB can be used to verify BAB tokens by third-party protocols for a variety of operations such as airdropping NFTs and many others.
In the formal post on Binance's website, BAB token intends to address identity problems replete in the decentralized society. As the inaugural Soulbound Token modeled on the BNB Smart Chain, it stems from a revolutionary vision to minimize identity crises amidst other problems.
Therefore, it can not be compared to traditional assets like Ethereum, Dogecoin, and Bitcoin, which portray monetary figures. Also, the announcement by Binance illustrates that "transferability" may not be advantageous for decentralization. Binance anticipates that other miscellaneous functions for BAB will emerge in the coming years, especially as the Web 3 ecosystem matures.
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What is Soulbound?
Ethereum's co-founder, Vitalik Buterin, together with Puja Ohlaver and E.Glen Weyl, initiated the notion of SBT. At the start of this year, Buterin expounded greatly on the pitfalls of commercial feasibility and transferability characteristics of NFTs.
Soulbound is a recently developed kind of token standard that could prove to be pivotal for establishing blocks for the Decentralized Society, or DeSoc. What do you think about Binance Account Bound (BAB)? Let's know what you think in the comment section below.
