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Apart from providing a credit score, the second use case for the protocol is .soul domain names.
Masa, the first Ethereum Virtual Machine (EVM), consistent with Soulbound identity protocol, has disclosed its mainnet launch on the Ethereum Network. The mainnet inauguration of Masa Soulbound Identity calls for a standardized on-chain Soulbound Token protocol and establishment to boost the Web3 ecosystem. The protocol will enable tokens to be minted on Ethereum for Know You Customer verification, credit scores, and other use cases.
Soulbound tokens are assets that cannot be exchanged from one wallet to another. The idea was made famous through a blog post from Vitalik Buterin, who ascertained that these tokens could be utilized to represent governance rights for decentralized finance (DeFi) protocols or to show that a person had observed an event.
With the launch of the mainnet, Masa is also supporting developments and other ventures to develop the protocol, utilizing Masa as the establishment to conveniently mint SBTs for a majority of use cases. The Masa protocol will be accessible to Ethereum and Celo developers and will add to other blockchains in 2023. Projects developed on Masa can make SBTs for user verification, Know Your Customer (KYC), risk-based DeFi lending, proof of participation, DAO, and community reputation score.
Masa Finance founders Brendan Playford and Calanthia Mei explained that Soulbound tokens will open possibilities for DeFi customers to build credit and take loans. Mei argued it as a place to help people make the most of an on-chain credit mechanism with a Web3 credit score, with the data sources accumulated across Web2 and Web3 designating and aiding people to work on their creditworthiness on-chain. She added that more than ten thousand data points are leveraged in a Masa credit score, that utilizes a user’s FICO score.
Mei also went on to say that this system will inch towards risk-based underwriting in DeFi, which according to her, wasn’t possible initially due to a scarcity of identity protocols on blockchain networks.
The founders also conveyed that there is another use case presently accessible for the protocol. Apart from giving away a credit score, the second use case for the protocol is .soul domain names. These are akin to ENS names with an additional advantage in that they can be related to several Masa identity features.
Brendan Playford also acknowledged that the .soul domain names can be exchanged from one wallet to another. However, the features relating to them have become unattached if the domain is shifted. Hence, users cannot purchase the identity or credit score of a different individual.
Masa is not alone in becoming the single Soulbound token protocol to be applied on a blockchain network. Binance had recently revealed its own rendition, called the BAB, which could be leveraged to prove an individual’s identity. However, BAB is presently only accessible on the BNB chain.