Vitalik Buterin: Soulbound Tokens Could Soon Take Your Entire Identity To Web3 – Crypto Currency Tracker

Vitalik Buterin: Soulbound Tokens Could Soon Take Your Entire Identity To Web3

Soulbound Tokens (SBTs) have been promoted as tokens with the potential to alter mankind. Vitalik Buterin, the co-founder of Ethereum, recently co-wrote a 37-page paper outlining how Ethereum’s future would center on an ecosystem described as a “Decentralized Society: Finding Web3’s Soul.”

Buterin and his co-authors elaborated on their vision for a future decentralized society (DeSoc) that will survive on Soulbound Tokens (SBTs). SBTs are an essential component of this speculative future, which will be accessible this year.

Analysts believe the moniker is drawn from World of Warcraft’s “soulbound goods,” which Buterin has previously lauded. SBTs are non-fungible tokens (NFTs) that a person can acquire in part depending on their work and educational experience.

Soulbound tokens and Web3 identity
SBTs, unlike regular NFTs, are non-transferable, however, they can be revoked if desired. According to Buterin, they serve as a form of “extended portfolio” for a person’s reputation and accomplishments.

The Soulbound tokens are designed to strengthen people’s social identities by carefully personalising them with individual and non-exchangeable badges. In theory, these tokens might aid in the resolution of some of the challenges impacting decentralised finance, such as theft and frauds.

‘Souldrops’ And College Degrees
As the article highlights, there are various ways we may utilise the tokens in real life. Assume schools and universities began offering degrees as soulbound tokens, companies began distributing SBTs to employees, and event organisers began issuing SBTs to attendees.

Scammers and thieves may find it difficult to impersonate someone with these credentials. On the other hand, it would make it easy for potential employers to verify an individual’s background and training when contemplating employment.

The tokens may also make it easier for Decentralized Autonomous Organizations (DAOs), or groups without a single or hierarchical leader, to gather members for a certain cause or event. As a recruiting approach, an environmentally conscious DAO may airdrop SBTs to users who already have some environmental action SBTs. Buterin refers to them as “souldrops.”

Individuals’ SBTs are then authenticated by other’souls,’ or persons who can authoritatively vouch for you and the credential or accomplishment for which you are earning a token.

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