If it were up to Vitalik Buterin, so-called Soulbound Tokens would become Ethereum’s next success story. The term “Soulbound” was stuck on the idea by Buterin himself and was inspired by the ever-popular World of Warcraft. What makes Soulbound Tokens special is that once received, they cannot be sent.
Soulbound Tokens in brief
Soulbound Tokens are a type of Non-Fungible Tokens (NFTs). But once these end up in your “soulwallet”, you cannot sell or pass them on. They are connected to you for eternity. The moment you get a Soulbound Token, you keep it forever. But what can you do with Soulbound Tokens if they can no longer disappear from your wallet? That’s a good question.
There are a number of uses for them. For example, universities can issue diplomas in the form of Soulbound Tokens. For that to work, however, the identity of the person in question must be securely linked to the wallet. Otherwise, in theory, you could still pass on your wallet. Another risk is losing a wallet.
Other uses for Soulbound Tokens
Another use you can think of for tokens is to prove certain things. For example, suppose a company is looking for a new employee who has taken certain courses or attended events. Souldbound Tokens can help with that.
In theory, it is even possible to hire people without knowing their names, but purely on the basis of Soulbound Tokens. After all, you can program the tokens so that the university or college can endorse that the token is legitimate, without revealing the identity of the owner.
In a world filled with scammers, it could be quite interesting to build a blockchain-based reality. A reality where we can verify things and speak with certainty about important details like degrees and the like.
Decentralized society
Vitalik Buterin and his colleagues refer in a research paper to the future of the world as the “decentralized society”. The paper is titled “Decentralized Society: Finding Web3’s Soul”. Blockchain technology, according to Buterin, makes it possible to build trust in social relationships. Soulbound Tokens are a way to build a verified reputation on the Internet. A kind of curriculum vitae that cannot be tampered with.
According to Buterin, this new form of tokens will “hit the market” in late 2022. The creator of Ethereum expects them to go mainstream in 2024 and cause a huge hype. We have yet to see it, as most cryptocurrencies have become popular so far because of the monetary aspects. If you bet early on the right coins, there was a lot to be gained from them. We can’t say the same about the new Soulbound Tokens that you can’t sell or give away after receiving them.
On the other hand, it’s not smart to underestimate Vitalik Buterin, because the man has accomplished a lot in the crypto world. But of course he can’t be about everything right.
What exactly we should expect from the Soulbound Tokens is still unclear, but that they are on their way to our wallets is certain.
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