Occasionally, the devs over at RugZombie like to take a break from all our “raising the dead” and provide some insight into security related features on the blockchain.
A recent development on the Binance Chain is providing an interesting new feature in the fight against crypto-crimes- The Binance Account Bound Token, or BAB Token.
In order to understand what a BAB is, how it can enhance security, we need to first understand the idea of a “soul bound token”.
Soul Bound Tokens (SBTs)
SBTs are an idea introduced by Vitalik Buterin to describe a token that is essentially non-financial in its purpose. They are non-transferrable and, Vitalik likens them to the “no-drop” items of games such as World of Warcraft.
The immediate benefits for enhanced blockchain security become apparent. If you can issue SBTs for things such as DAO voting, etc. you can basically minimize sybil attacks, voting manipulation, and more.
BABs are the Binance version of SBTs. By KYCing with Binance, you can receive a BAB that will offer rewards with various web3 projects on the BNBChain.
BABs provide some truly innovative ways of approaching security on the blockchain. While there are certain “risks” such as your personal identity associating with a soul bound token through the KYC process*, this is a great step forward for the entire space. Consider these use cases:
SafeBuilder DAO uses BAB tokens to allow for participation in a builders guild. Being in the guild requires the BAB token, which in turn, requires a KYC process. Builders on the BNBChain who are in the DAO are now verified accounts/persons with accountability for what they build. This could reduce the likelihood of rug-pulls on the chain.
Voting on your favorite defi protocol changes requires a BAB, which ensures that votes can’t be manipulated by a large holder effectively manipulating the vote through a large bag and multiple wallets.
Gaming Project (like ZOM) can verify that players are not bots, and play to earn projects can make sure that verified users are the ones earning tokens-and the game project isn’t privvy to any of your private information, only that your wallet is “verified”.
These are a few simple ways in which BABs may improve the security of the BNBChain in the future.
*we recognize that the ability to operate privately on the blockchain is one of the fundamental concerns for many users. While using centralized exchanges like Binance to authorize your wallet(KYC) risks removing this privacy, we want to recognize that users can still create new wallet and operate freely on the chain and using the chain does not require the use of a BAB token.