On August 1st, Binance released the first-ever Soulbound token BAB, which is currently used for identity verification of Binance wallet accounts.

Many friends don't know what a Soulbound Token is: Soulbound Token, or SBT, is actually a Web3 concept. The details are as follows:

Proposed by economic and sociologist E. Glen Weyl, lawyer Puja Ohlhaver, and Ethereum founder Vitalik Buterin in May 2022, Binance is only a few months old. Binance is the first early adopter of SBT, which is actually one of the bottom layers of WEB3. Authentication credentials are used for the performance of each identity soul (soul) traits, characteristics and achievements. This soul can be an individual, an organization or other physical objects.

Soulbound Tokens or SBTs are non-transferable, non-financialized tokens associated with unique profiles that demonstrate verifiable achievements and commitments. Still in the conceptual stage, it is suggested that SBT will be able to track memberships, credentials, and affiliations with educational institutions, decentralized lenders, and other entities.

Proponents say SBT could be a use case for the next bull run. But others have likened the concept to China's social credit system, calling it an "expensive solution to an already-solved problem."

We can generally understand that SBT is a decentralized identity certificate, not only for individuals, but also for institutions. SBT represents the commitment, certificate and affiliation in social relations on the Web3 network, but SBT as a token is non-transferable and non-tradable. There is no market value. Different from homogenized tokens and non-fungible tokens, in a decentralized society, SBT is issued and held by the account of "Souls".

Web3 should be more than just financial assets

Last month, Vitalik Buterin and co-authors Glen Weyl and Puja Ohlhaver published a paper outlining their vision for a Soulbound token, which would enable individuals to obtain a permanently non-tradable record of benefits and properties, and store them privately. in the blockchain wallet.

These will form an important part of a Decentralized Society or DeSoc, which deviates from the current hyper-financialized state of Web3 and relies on non-transferable social trust relationships. Co-authors say the crypto world will move beyond simple transferable financial assets.

Non-transferable soul-bound tokens represent credentials, commitments and affiliations and are associated with our "soul". In short, they are tokenized representations of a series of possible traits, traits, and achievements that make up a person or entity. Souls can also issue and certify SBTs to other souls. For example, students will receive an SBT from the University, which will also be represented by their own soul.

It's important that Souls is not presented on a 1:1 scale. That is to say, a person can have multiple Souls in the decentralized world. For example, you have different souls in high school, college and work. The BAB issued by Binance is currently only used for KYC authentication of wallet accounts, which is quite On the SBT given by Binance, authenticate you as their user. Binance will issue “Binance Account Bound (BAB), the first-ever Soulbound Token (SBT) based on the BNB Smart Chain.

Binance will issue “Binance Account Bound (BAB), the first-ever Soulbound Token (SBT) based on the BNB Smart Chain.

Binance Account Bound (BAB) tokens will be displayed on user wallets to emphasize that they have successfully completed KYC. In effect, the token will prove the user's verified status on Binance and will be available to third-party protocols. The token is not transferable and can only be revoked or cancelled by the relevant user, as it is a unique token that can only be minted after KYC has been completed.

But what does this mean for the average user, and what are the inherent possibilities?

In fact, the initial implementation will serve as a pilot project with BABs only accessible through the Binance mobile app, allowing KYCed Binance users to mint their own BABs directly on the wallets they use on Binance. When minting, users will need to choose a wallet address - either the current address or the option to create a new address - the address where the SBT will reside.

However, the potential of Soulbound Tokens extends well beyond the initial early stages of implementation. Fulfilling a decentralized society requires more than just the financial issues we've seen so far. To keep blockchain at the center of a collaborative and exciting ecosystem, other initiatives and use cases beyond money are needed.

SBT will be non-transferable, meaning users will not be able to transfer their tokens from one address to another. This will induce a sense of responsibility where tokens represent more than money, they will underline the associated Web3 credentials they represent.

This was a key element to keep in mind during Binance’s initial pilot of the BAB token, which dApps were also able to use to determine how they interact with users. This will open up many possibilities for the tasks they set for their users and their attempts to build a community.

However, Binance's initial use case is just one of the possible paths the technology can take - actually the first path. For example, SBT can have a huge beneficial impact when we start thinking about governance mechanisms. Transferability is problematic when it comes to the distribution of governance power. Problems can arise when the goal is to fully distribute governance rights and transferability begins to influence and concentrate interests. Transferability can often be initiated by purchasing power, which is not in the best interest of decentralization.

More use cases for BAB tokens will emerge as we begin to explore how credentials will work in Web3, whether in the form of verifiable skill sets or titles earned. This sense of responsibility paves the way for more efficient decentralized communities and spaces.

At Last

Some say that SBT will see mass adoption in the next upcycle in 2024. Perhaps in the future, he may become an atomic module for building democratic, composable, decentralized networks and Web3 societies, but at present, he is nascent and underdeveloped.

But new things, we can continue to pay attention, this is the fun of the blockchain, everyone can continue to pay attention, wait for the concept, the token comes out, according to the market heat, we can see if we can ambush a wave, it is still far away, but continuous discovery and learning also It is the advancement in our understanding of blockchain.

On August 1st, Binance released the first-ever Soulbound token BAB, which is currently used for identity verification of Binance wallet accounts.

Many friends don't know what a Soulbound Token is: Soulbound Token, or SBT, is actually a Web3 concept. The details are as follows:

Proposed by economic and sociologist E. Glen Weyl, lawyer Puja Ohlhaver, and Ethereum founder Vitalik Buterin in May 2022, Binance is only a few months old. Binance is the first early adopter of SBT, which is actually one of the bottom layers of WEB3. Authentication credentials are used for the performance of each identity soul (soul) traits, characteristics and achievements. This soul can be an individual, an organization or other physical objects.

Soulbound Tokens or SBTs are non-transferable, non-financialized tokens associated with unique profiles that demonstrate verifiable achievements and commitments. Still in the conceptual stage, it is suggested that SBT will be able to track memberships, credentials, and affiliations with educational institutions, decentralized lenders, and other entities.

Proponents say SBT could be a use case for the next bull run. But others have likened the concept to China's social credit system, calling it an "expensive solution to an already-solved problem."

We can generally understand that SBT is a decentralized identity certificate, not only for individuals, but also for institutions. SBT represents the commitment, certificate and affiliation in social relations on the Web3 network, but SBT as a token is non-transferable and non-tradable. There is no market value. Different from homogenized tokens and non-fungible tokens, in a decentralized society, SBT is issued and held by the account of "Souls".

Web3 should be more than just financial assets

Last month, Vitalik Buterin and co-authors Glen Weyl and Puja Ohlhaver published a paper outlining their vision for a Soulbound token, which would enable individuals to obtain a permanently non-tradable record of benefits and properties, and store them privately. in the blockchain wallet.

These will form an important part of a Decentralized Society or DeSoc, which deviates from the current hyper-financialized state of Web3 and relies on non-transferable social trust relationships. Co-authors say the crypto world will move beyond simple transferable financial assets.

Non-transferable soul-bound tokens represent credentials, commitments and affiliations and are associated with our "soul". In short, they are tokenized representations of a series of possible traits, traits, and achievements that make up a person or entity. Souls can also issue and certify SBTs to other souls. For example, students will receive an SBT from the University, which will also be represented by their own soul.

It's important that Souls is not presented on a 1:1 scale. That is to say, a person can have multiple Souls in the decentralized world. For example, you have different souls in high school, college and work. The BAB issued by Binance is currently only used for KYC authentication of wallet accounts, which is quite On the SBT given by Binance, authenticate you as their user. Binance will issue “Binance Account Bound (BAB), the first-ever Soulbound Token (SBT) based on the BNB Smart Chain.

Binance will issue “Binance Account Bound (BAB), the first-ever Soulbound Token (SBT) based on the BNB Smart Chain.

Binance Account Bound (BAB) tokens will be displayed on user wallets to emphasize that they have successfully completed KYC. In effect, the token will prove the user's verified status on Binance and will be available to third-party protocols. The token is not transferable and can only be revoked or cancelled by the relevant user, as it is a unique token that can only be minted after KYC has been completed.

But what does this mean for the average user, and what are the inherent possibilities?

In fact, the initial implementation will serve as a pilot project with BABs only accessible through the Binance mobile app, allowing KYCed Binance users to mint their own BABs directly on the wallets they use on Binance. When minting, users will need to choose a wallet address - either the current address or the option to create a new address - the address where the SBT will reside.

However, the potential of Soulbound Tokens extends well beyond the initial early stages of implementation. Fulfilling a decentralized society requires more than just the financial issues we've seen so far. To keep blockchain at the center of a collaborative and exciting ecosystem, other initiatives and use cases beyond money are needed.

SBT will be non-transferable, meaning users will not be able to transfer their tokens from one address to another. This will induce a sense of responsibility where tokens represent more than money, they will underline the associated Web3 credentials they represent.

This was a key element to keep in mind during Binance’s initial pilot of the BAB token, which dApps were also able to use to determine how they interact with users. This will open up many possibilities for the tasks they set for their users and their attempts to build a community.

However, Binance's initial use case is just one of the possible paths the technology can take - actually the first path. For example, SBT can have a huge beneficial impact when we start thinking about governance mechanisms. Transferability is problematic when it comes to the distribution of governance power. Problems can arise when the goal is to fully distribute governance rights and transferability begins to influence and concentrate interests. Transferability can often be initiated by purchasing power, which is not in the best interest of decentralization.

More use cases for BAB tokens will emerge as we begin to explore how credentials will work in Web3, whether in the form of verifiable skill sets or titles earned. This sense of responsibility paves the way for more efficient decentralized communities and spaces.

At Last

Some say that SBT will see mass adoption in the next upcycle in 2024. Perhaps in the future, he may become an atomic module for building democratic, composable, decentralized networks and Web3 societies, but at present, he is nascent and underdeveloped.

But new things, we can continue to pay attention, this is the fun of the blockchain, everyone can continue to pay attention, wait for the concept, the token comes out, according to the market heat, we can see if we can ambush a wave, it is still far away, but continuous discovery and learning also It is the advancement in our understanding of blockchain.