Masa Finance launches an identity protocol "soulbound" Web3 for Ethereum

Masa Finance has launched the primary “soulbound” id protocol [un token vinculado al alma o a la identidad] for the Ethereum mainnet, in response to a Jan. 17 press launch shared with BoxNews. The protocol will permit standardized soulbound tokens to be minted on Ethereum for Know Your Buyer verification, credit score scores, and different use circumstances.

Soulbound tokens are tokens that can’t be transferred from one pockets to a different. The idea was popularized by means of a weblog submit by Vitalik Buterin, who argued that these tokens might be used to suggest governance rights for decentralized finance (DeFi) protocols or to show that an individual has attended an occasion.

Talking to BoxNews, Masa Finance founders Brendan Playford and Calanthis Mei argued that soulbound tokens will develop alternatives for DeFi customers to construct credit score and procure loans. Mei defined it like this:

We need to assist individuals reap the benefits of [un] on-chain credit score system with a Web3 credit score rating, with the info sources we have added on Web2 and Web3 representing and serving to individuals construct creditworthiness on-chain. We’re at present working with a number of lending companions to offer DeFi loans to those that have accomplished a Masa credit score rating report.

He pressured that Masa’s soulbound tokens usually are not merely tied to a standard credit score rating. The protocol goes past conventional finance to include Web2 and Web3 exercise. Mei stated that greater than 10,000 knowledge factors are utilized in Masa’s 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 change balances and different knowledge.

Mei believes this method will result in “risk-based underwriting” in DeFi, which she says has not been attainable earlier than as a result of lack of id protocols in blockchain networks.

The founders additionally stated that there are different use circumstances at present out there for the protocol. Except for representing a credit score rating, the second use case for the protocol is .soul domains. These are much like ENS names, however with the added benefit that they are often linked to numerous Masa id traits. Playford defined that “customers can hyperlink completely different attributes, use their pseudonym to get verified, present that they’re verified on Web3 with out disclosing [su] full title, for instance “wo 80 / ch 501

Playford famous that .sol domains may be transferred from one pockets to a different. Nonetheless, the attributes related to them will likely be unlinked if the area is moved. Due to this fact, customers can’t “purchase” one other particular person’s id or credit score rating.

In line with the founders, a 3rd use case will likely be id verification, a characteristic the corporate is launching below the title “Masa Inexperienced.” It’s going to permit customers to mint a Masa Inexperienced token to show their id, which the corporate believes will assist customers show they’re actual people, not bots. In line with Mei, this can assist remove bots in play-to-earn video games and different apps the place the neighborhood solely desires actual people to take part. The corporate says Masa Inexperienced will likely be out there as “quick observe within the coming weeks.”

Masa just isn’t the one soulbound token protocol to be carried out on a blockchain community. Binance has launched its personal model, referred to as BAB, which can be utilized to show a person’s id. Nonetheless, BAB is at present solely out there on the BNB Chain. Masa seems to be the primary soulbound token protocol out there on Ethereum.

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