Masa Finance had launched the first soulbound identity protocol for the Ethereum mainnet. The protocol will make it possible to mint standard soulbound tokens on Ethereum for Know Your Customer verifications, credit scores, and other uses.
Soulbound tokens are special kinds of tokens that can’t be moved from one wallet to another. Vitalik Buterin wrote a blog post that brought attention to the idea. He said that these tokens could be used to show who has control over decentralized finance (DeFi) protocols or to prove that someone was at an event.
What Masa contributes to the SBT discussionn?
Soulbound Masa tokens are not only associated to a traditional credit score. The protocol surpasses traditional finance by incorporating Web2 and Web3 activity. Over 10,000 data points, such as a user’s FICO score, Plaid transaction data for credit and debit cards, Web3 wallet transaction history, and centralized exchange balances, are utilized to create a Masa credit score.
When users log in to the Masa platform with their MetaMask or other software wallets, they will be asked to mint a Masa Soulbound Identity Token. This is a non-transferable NFT that is associated to a user’s wallet and is said to show that a user’s Web3 identity is unique. Basically, it’s an SBT that can be created directly to an existing wallet instead of requiring a Soul Wallet.
Additionally, the founders stated that one more use case is currently available for the protocol. In addition to representing credit scores, the protocol can also be used for.soul domain names. These are similar to ENS names, with the extra advantage of being able to be linked with numerous Masa identity characteristics.
Playford explained that “users can link different attributes, use their pseudonym to verify themselves, show that they’re verified in Web3 without doxing [their] full name, for example.”
Playford stated that soul domain names are transferable between wallets. However, if the domain is moved, the corresponding attributes will become unattached. Users cannot therefore “buy” the identity or credit score of another individual.
The founders say a third use case is identity verification, which the business is calling “Masa Green.” The company hopes users will be able to mint a Masa Green token to verify they are individuals, not bots. Mei said this will eliminate bots in play-to-earn games and other apps where the community wants only humans. The business stated Masa Green will be a “fast follow within the coming weeks.”
Is Masa the only one?
On a blockchain network, Masa is not the only soulbound token protocol that has been developed. Binance has released its own version of BAB, which can be used to verify the identity of a user. Currently, BAB is only available on BNB Chain. On Ethereum, Masa appears to be the first soulbound token protocol.
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