Masa Finance has released the very first soulbound identity procedure for the Ethereum mainnet, according to a Jan. 17 press release shared with Pandoraland. The protocol will permit standardized soulbound tokens to be minted on Ethereum for Know Your Customer verification, credit history and other usage cases.Soulbound tokens

are tokens that can not be transferred from one wallet to another. The idea was promoted via a blog post from Vitalik Buterin, who argued that these tokens might be utilized to signify governance rights for decentralized financing (DeFi) procedures or to show that an individual has actually attended an event.Speaking to Pandoraland, Masa Finance founders Brendan Playford and Calanthia Mei argued that soulbound tokens will broaden chances for DeFi users to construct credit and get loans. Mei described it as such: We want to assist individuals take advantage of [an] on-chain credit system with a Web3 credit score, with the information sources that we have aggregated throughout Web2 and Web3 representing and helping individuals build their credit reliability on-chain. We’re presently working with several providing partners in extending DeFi loans to those people who have minted a Masa credit score report.She highlighted that Masa soulbound tokens are not simply attached to a conventional credit history. The protocol exceeds traditional financing to integrate both Web2 and Web3 activity. Mei stated that over 10,000 information points are used in a Masa credit rating, including a user’s FICO rating, Plaid transaction data for credit and debit cards, Web3 wallet transaction history, centralized exchange balances, and other data.Mei believes this system will cause “risk-based underwriting” in DeFi, which she says has actually previously not been possible due to

the lack of identity procedures on blockchain networks.The creators also stated there is one other usage case currently readily available for the protocol. Aside from representing a credit report, the second usage case for the procedure is.soul domain. These resemble ENS names, however with the included benefit that they can be connected to numerous Masa identity characteristics. Playford discussed that “users can connect various qualities, utilize their pseudonym to verify themselves, reveal that they’re confirmed in Web3 without doxing [their] full name, for example. “Related: Lukso co-founder talks about implications of digital self-sovereignty in Web3 Playford noted that.soul domain names can be moved from one wallet to another. Nevertheless, the characteristics associatedwith them will end up being unattached if the domain is moved. Therefore, users can not”buy” the identity or credit score of another person.According to the creators, a third use case will be identity verification, a feature the business is releasing under the name”Masa Green. “It will enable users to mint a Masa Green token to show their identity, which the business thinks will help users to show they are

genuine people, not bots. According to Mei, this will help eliminate bots in play-to-earn video games and other apps where the neighborhood wants just genuine human beings to participate. The company said Masa Green will be available as a”fast follow within the coming weeks.”Masa is not the only soulbound token protocol to be executed on a blockchain network. Binance has launched its own version, called BAB, which can be used to prove a user’s identity. However, BAB is currently just available on BNB Chain. Masa appears to be the very first soulbound token protocol offered on Ethereum.