TL; DR
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Binance wants to create a token that allows anyone who has KYC on its platform to automatically get a KYC on any other platform that requires the same ID verification.
Full story
You know those simple ideas where there are just a few too many moving parts to work?
For example: “If everyone in our friend groups contributes €1,000, we can all buy a boat and have the summer of our dreams!”
Sounds great, but convincing everyone to go through with it is quite a task.
Well, Binance is taking on one of those challenges.
Their platform requires users to go through ‘Know Your Customer’ (KYC) verification, where users submit their ID, proof of address, etc.
Most platforms do that.
But Binance now wants to create a token that allows anyone who has KYC on its platform to automatically get a KYC on any other platform that requires the same ID verification.
The idea is that: They’ve gone to the trouble of making sure the name, date of birth and address on your ID are legitimate – so why should every other platform have to do the same?
Instead, third-party platforms can simply check users’ wallets for a Binance Account Bound Token (BABT) and approve them automatically (because they know Binance has already done the heavy lifting).
It’s a great concept! And one that we would like to see become a reality.
The only problem is, just like buying a boat with your friends, coordinating to get everyone on board to join the new system…
Messy.