Strange : Soulbound Tokens ✌🏻

Do you find this name "Soulbound Tokens" mysterious. High-Figh 👋 I think so too. Let us decode the Soulbound Tokens today ::)

What are Soulbound Tokens ?

Soulbound tokens are just permanent, non-transferable NFTs, meaning that they can’t be given away or taken from your private blockchain wallet.

In the paper’s vision for a decentralized society, accounts called “Souls” will hold or issue SBTs that represent the “commitments, credentials and affiliations” of an individual holder. “Such tokens would be like an extended resume, issued by other wallets that attest to these social relations,” the authors explain.

Origin of Soulbound Tokens ⚔️

The concept behind Soulbound Tokens seemingly comes from the game World of Warcraft (WoW) — which also inspired Vitalik Buterin - the co-founder of Ethereum, who derived the name for his beloved Ethereum blockchain from the franchise. In WoW, “soulbound” is a property of an item that prevents it from being traded or mailed to another character.

Use cases of Soulbound Tokens?

• Managing Medical Records

• Storing digital Id Cards

• Certifying job or education history

• Verifying attendance to an event

Soulbound tokens can help resolve the issue of trust in Web3 by establishing provenance and reputation. They are not transferable and theoretically lower the risk of people manipulating the ecosystem by buying status or lying about their achievements. This could also make Web3 scams less prevalent due to a more complex process of identity theft and impersonation.

That's it for the day, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻