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Home Ethereum Masa Finance launches soulbound Web3 identification protocol for Ethereum – Cointelegraph

Masa Finance launches soulbound Web3 identification protocol for Ethereum – Cointelegraph

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In keeping with the builders, the soulbound credit score rating system makes use of over 10,000 knowledge factors to find out a Web3 person’s creditworthiness.

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Masa Finance has launched the primary soulbound identification protocol for the Ethereum mainnet, in keeping with a Jan. 17 press launch shared with Cointelegraph. The protocol will permit for standardized soulbound tokens to be minted on Ethereum for Know Your Buyer verification, credit score scores and different use instances.

Soulbound tokens are tokens that can not be transferred from one pockets to a different. The idea was popularized via a blog post from Vitalik Buterin, who argued that these tokens may very well be used to suggest governance rights for decentralized finance (DeFi) protocols or to show that an individual has attended an occasion.

Chatting with Cointelegraph, Masa Finance founders Brendan Playford and Calanthia Mei argued that soulbound tokens will broaden alternatives for DeFi customers to construct credit score and get loans. Mei defined it as such:

We wish to assist folks faucet into [an] on-chain credit score system with a Web3 credit score rating, with the info sources that we now have aggregated throughout Web2 and Web3 representing and serving to folks construct their creditworthiness on-chain. We’re at the moment working with a number of lending companions in extending DeFi loans to these people who’ve minted a Masa credit score rating report.

She emphasised that Masa soulbound tokens will not be merely connected to a conventional credit score rating. The protocol goes past conventional finance to include each Web2 and Web3 exercise. Mei stated that over 10,000 knowledge factors are utilized in a Masa credit score rating, together with a person’s FICO rating, Plaid transaction knowledge for credit score and debit playing cards, Web3 pockets transaction historical past, centralized trade balances, and different knowledge.

Mei believes this method will result in “risk-based underwriting” in DeFi, which she says has beforehand not been doable as a result of lack of identification protocols on blockchain networks.

The founders additionally stated there may be one different use case at the moment out there for the protocol. Apart from representing a credit score rating, the second use case for the protocol is .soul domains. These are much like ENS names, however with the additional advantage that they are often linked to varied Masa identification traits. Playford defined that “customers can hyperlink completely different attributes, use their pseudonym to confirm themselves, present that they’re verified in Web3 with out doxing [their] full title, for instance.”

Associated: Lukso co-founder discusses implications of digital self-sovereignty in Web3

Playford famous that .soul domains could be transferred from one pockets to a different. Nonetheless, the attributes related to them will change into unattached if the area is moved. Due to this fact, customers can’t “purchase” the identification or credit score rating of one other individual.

In keeping with the founders, a 3rd use case will probably be identification verification, a function the corporate is releasing below the title “Masa Inexperienced.” It’s going to permits customers to mint a Masa Inexperienced token to show their identification, which the corporate believes will assist customers to show they’re actual people, not bots. In keeping with Mei, it will assist to eradicate bots in play-to-earn video games and different apps the place the neighborhood needs solely actual people to take part. The corporate says Masa Inexperienced will probably be out there as a “quick comply with inside the coming weeks.”

Masa will not be the one soulbound token protocol to be carried out on a blockchain community. Binance has launched its personal model, known as BAB, which can be utilized to prove a user’s identity. Nonetheless, BAB is at the moment solely out there on BNB Chain. Masa seems to be the primary soulbound token protocol out there on Ethereum.

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