The entry of Soulbound NFTs has signalled the potential introduction of really non-transferable Non-fungible tokens. Any discussion of NFTs implies that they are assets that can be traded between two digital wallets.
What are SoulBound NFTs, and how do they impact the growth of web3?
Read the following to understand and know better about SBTs.
In simple words, they are NFTs that are non-transferrable. It is not odd that people might be perplexed by the reasoning for utilising a non-transferable token. Especially considering that NFTs have various uses because a big part of them is due to their transferable nature.
SBTs are new non-transferable, publicly verified digital tokens that can indicate social status on Web 3.0. This acts like a digital CV for a person. SBTs would contain all details about a person’s affiliations, memberships, and all related credentials.
The idea for these SBTs was drawn from the world-famous game World of Warcraft, where the items in the game are bound to the characters playing the game and are called “Soulbound”. Players cannot trade, sell or buy such items from other players or characters. Along similar lines, SBTs would ensure users cannot trade their social status for the opportunity to upgrade.
The distinctive feature of SBTs is that they are always and forever attached to a wallet. Users with a blockchain account store their personal information and documents related to their history, professional experience, and educational background. This is like a CV in the real world. Thus, making SBTs an important tool for establishing a user’s reputation in the future of Ethereum blockchain.
Numerous uses can be listed out for SBTs. We could start with something that is basic and simple such as a University Degree. A university could provide their students who graduate with an SBT instead of a Certificate.
One could argue that NFTs are good enough for that process, but the chances of trading or selling such NFTs also exist. On the other hand, if the university offers a soul NFT, the students would be unable to sell or transfer it.
SBTs are a new concept that are just making their foray into the future of Ethereum on a blog post by Vitalik Buterin. The co-founder of the Ethereum blockchain has given the idea of experiments being conducted in relation to the idea of SBTs. Currently, no specific date or timeline has been listed as to when SBTs would be available for use to everyone.
Ever since the idea of NFTs was brought into the world of Web 3.0, the focus has been on the safe and secure transfer of assets and items. SBTs are now providing users the same concept of safety and security to the identity of the users on the blockchain. Cashing in on the concept, bitsCrunch is planning on getting into a partnership with xHashtag Dapp. The idea is to create a token called “Soulswag”, which can be used to recognise community members on-chain.
Soulswags are Soulbound Tokens or non-transferable tokens as credentials. These tokens will be highly usable for sybil resistance in DAO elections and token balance and monitoring if the user is a dedicated community member.