Binance did what Vitalik wanted: a new type of token that binds your soul

Binance has launched Binance Account Bound (BAB), a non-transferable and non-financial token designed to confirm verification status on the exchange. Before we had time to understand NFTs properly, the largest exchange rolled out a brand new type of token, which was previously invented by Vitalik Buterin, having read some cyberpunk.

Should we start freaking out right away, or can we calmly finish reading this text? We figured out what this virtual shit thing does, what your soul has to do with it, and why Vitalik urgently needs BAB.

What the hell is that?

Binance announced that it is ready to launch Binance Account Bound (BAB), which is the implementation of the first-ever Soulbound Token (SBT). BAB will be introduced as a pilot project and will only be available for mining through the Binance mobile app.

BAB tokens will serve as the credentials of a user who has previously passed the KYC procedure. BAB is essentially being introduced as a counterpart to the online identity for Binance. Third-party protocols can also use it to validate BAB tokens for a multitude of activities such as bot protection, NFT air-drop, using DAO for quad voting, etc.

What is it for?

According to a vague official blog post, the BAB token is the first ever Soulbound token issued on the BNB smart chain that focuses on solving identity problems in a decentralized society. It is a non-transferable and non-funded token.

The announcement notes that “transferability” (typical of NFT) may not be in the interest of decentralization. For example, it may be problematic with regard to the distribution of management authority.

BAB also differs from traditional assets like Bitcoin and Ethereum, which are momentary sums.

If you’re racking your brains trying to figure out what this thing is for, relax, nobody knows yet. This is just what Vitalik Buterin came up with. Binance itself quite honestly admits that only the future will show how it can be effectively applied:

“As we begin to explore how credentials will function in Web3, whether it be in the form of a verifiable skillset or an earned title, further use cases for the BAB token will arise. This sense of accountability paves the way for a more efficient decentralized community and space. Binance expects that additional use cases for BAB will arise in the future as the web3 landscape evolves.”

What does it really mean? (And why the answer is nothing)

If you’re still puzzled, let us explain. Zoomers don’t look at things by answering the question of why it’s necessary; they ask other questions — like, is it fun?

If you still don’t understand how freaking fun it is to mine a Soulbound token on your phone — then you just aren’t a zoomer. And you certainly can’t fit into Vitalik’s train of thought. You’re just too old and tedious.

You’re probably still wondering why Vitalik needs this BAB?

As we mentioned earlier, the concept of BAB was first invented by Ethereum founder Vitalik Buterin as an alternative to NFTs.

Soulbound (aka BAB, aka SBT) is a new kind of token standard that could potentially become an essential building block for the decentralized society (or DeSoc) that Vitalik is dreaming about. Simply speaking, this is the easiest way to implement digital identity on the blockchain. Instead of the boring Chinese totalized QR-code, zoomers have come up with a full analog in the form of cute and funny cartoon characters. In his paper, Buterin detailed several ways SBT can be used “to bind your soul”: from university degrees to educational credentials to web3 credit points.