Understanding the “Soulbound Token” in just 3 minutes – The ₿log

The Soulbound Token (SBT) has been imagined in May this year by Vitalik Buterin, the co-founder of Ethereum, attorney Puja Ohlhaver and E. Glen Weyl, a social economist and technology. Behind these SBTs is the logic of the popular online game World of Warcraft. In this video game universe, players own objects and artifacts. Being linked to a “soul”, these cannot be sold or transferred. The death of the player can cause their detentions to disappear.

More generally and related to the crypto universe, these (SBTs) aspire to become the future of Ethereum and Web 3.0. Indeed, as detailed in the white paper “Decentralized Society, Finding Web3’s Soul”, the goal is to achieve a fully decentralized society (DeSoc).

But behind this terminology, what exactly are we talking about? What is this concept actually used for and what are its contributions to the blockchain and the advantages? We explain it to you in less than 3 minutes.

What is a Soulbound Token?

A soulbound token (SBT) is a new type of asset in the crypto ecosystem which should see the light of day by the end of 2022, or even the beginning of 2023. If this notion can be compared to the Non Fungible Token (NFT) that we currently know, it is nevertheless a NFT of a new kind. In effect, these SBTs are non-exchangeable, non-transferable, non-assignable. The wallets that hold or issue these NFTs are called “Souls”.

Soulbound Tokens can literally translate as “soul attached tokens”. More clearly, they are digital identity tokens that relate to characteristics, achievements made by a person or an organization.

The objective of these SBTs is to ensure the emergence of a “decentralized society”. In other words, the idea is to track and trace a person’s social presence. This can in particular involve decentralized medical records secured by a certificate or administrative or legal documents.

How does the Soulbound Token work?

SBTs are issued by “Souls”, i.e. blockchain accounts or wallets. Therefore, attribution to an account makes it inseparable from this address. It can nevertheless be withdrawn by the initial issuer (the creator, author, institution, etc.) of this Soulbound Token.

It will be possible to have several “souls” available according to several stages of life or themes. This will allow users to build a verifiable and tamper-proof E-reputation 3.0.

Read also Understand the “Proof of Stake” in just 3 minutes

Advantages and disadvantages of Soulbound Tokens?

Even though Soulbound tokens are still in the experimental phase, these next-gen NFTs can ensure greater independence of artists who create NFTs particularly vis-à-vis platforms such as OpenSea for example.

It’s also a means of digitizing on the blockchain important life information and thus ensure traceability and sustainability of the latter.

If the advantages for these new NFTs are indisputable, this raises mainly ethical questions. In effect, what about the disclosure of very personal data on the blockchain ? It should not be forgotten that the latter is decentralized and public, so anyone can consult the data throughout the world.

Without forgetting the risk of data piracy. One can also fear a discrimination of population or person depending on the nature of the SBTs held…

The first solution to avoid these drawbacks could be to set up several Souls to strengthen your privacy. There would thus be a Soul for the family, one for professional life, one for medical…

Conclusion: soulbound tokens… evolution or revolution?

The potential of these new kind of NFTs is certain. its democratization could be rapidboth the development possibilities are endless. By way of example, one can imagine that a prefecture will eventually issue a driving licence. But also, a residence permit in SBT to a well-defined person. This certificate, which authenticates the document issued, could also take the form of a diploma issued by a university. One can still imagine that a professional football club issues SBTs to its subscribers or the most loyal members.

💎 Receive your Free Crypto Watch

The “Quickly Done, Well Done” crypto watch: Every Friday at 8 p.m. sharp, receive our free crypto watch in your email inbox. 100% added value, 0% spam!

🔥 Receive as a Bonus your Free Guide “Find the future Nuggets”: Learn how to analyze cryptos like a pro, avoiding Red Flags and Scams, to start or continue your Adventure in the world of cryptocurrency.

We wish to thank the writer of this post for this remarkable web content

Understanding the “Soulbound Token” in just 3 minutes – The ₿log


We have our social media profiles here , as well as additional related pages here.https://metfabtech.com/related-pages/