We are always learning and understanding the ever-expanding impact of web3 and what NFTs can do in the long run.
Soulbound tokens are one of those use cases of NFTs that will change the way we look at digital things today.
What are Soulbound Tokens (SBTs)?
The idea of SBTs was first introduced by Vitalik Buterin, the creator of Ethereum, back in May 2022.
An SBT is an NFT that is unique in its characteristics, making it the perfect solution for a few particular use cases.
- SBTs are non-transferrable — NFTs meant for a particular wallet address.
- SBTs are revocable, as a result, the issuer will always have authority over it.
By essentially removing the financial scope of trading this NFT, you can increase its usefulness in other areas.
For example, exclusive invite-only memberships can be done through SBTs. Authorities of a certain organization can extend their invitation to a certain wallet address to join them.
And the SBT will make sure that the invitation isn’t swapped or traded to anyone else. At the same time, the organization can revoke or change the status of the invitation by editing the SBT.
Use Cases of Soulbound Tokens
We already discussed one use case of SBTs already- invitations/membership.
You can use SBTs in several other situations like educational certificates, where all of your certificates are stored in SBTs issued by your college/university.
You can use SBTs in your job applications, where all of your references and testimonials, and performance records can be issued directly by your previous workplaces. It makes it easy for your future employer and reflects your qualities brilliantly.
The same applies to health records as well.
Introducing Binance Account Bound (BAB) Tokens
BAB tokens are a form of SBTs used in the Binance ecosystem.
Features of the BAB Tokens:
- Non-transferable: Users cannot transfer BAB tokens to other users.
- Revocable: Users can revoke their BAB tokens.
- Unique: One verified Binance user ID allows the user to mint one BAB token only on a certain chain.
BNB chain is using the opportunity to be the pioneer in the SBT space and create tokens that enhance the use cases of NFTs.
The token will be exclusively used as proof of identity for Binance users after completing a KYC process.
People completing the KYC process will be able to mint their own BAB token which will be used to verify identity and earn reward tokens.
As of now, 14 BNB chain projects have come forward to support the BAB token initiative. Some examples include campaigns/initiatives by ApeSwap, Project Galaxy, and X World Games.
ApeSwap created a claimable NFT that represents a raffle exclusively for BAB holders.
Project Galaxy included the BAB token holders in their credential database as a mechanism against Sybil Attacks. Also, these BAB token holder credentials will be published on an individual’s Galaxy ID to confirm that they have gone through the KYC verification process in Binance.
X World Games incorporated the token in its present and future releases. BAB token-holders will be able to claim a one-time airdrop prize for the first time they log in to any game. Depending on the game or mode, BAB token holders will additionally get VIP perks.
The Future of BAB Tokens
As more and more projects adopt the BAB token and seamlessly integrate it into their core system, the use cases of BAB tokens will increase.
In one of their posts, BNBchain said, “We understand that the benefits of SBTs are wide-ranging, complementing areas such as NFTs, DeFi, GameFi, and the Metaverse. BAB token, aimed at tackling identity-verification issues within Web3, represents a further effort to drive adoption in the space by introducing and incentivizing an element of trust.”
It clearly shows the far-reaching intention of the core team and how aggressively they’re willing to expand.
If you’re building a project in the BNBchain and want to integrate the BAB token with your system, you can reach out to them directly for support at firstname.lastname@example.org.