What are Soulbound Tokens (SBT)?
Soulbound Tokens (SBT) are a theoretical concept of non-transferable digital tokens that could potentially represent a person's identity and achievements in the Web3 ecosystem.
Unlike Non-Fungible Tokens (NFTs), SBTs, if they were to exist, would not be able to be exchanged or moved, making them a unique representation of an individual's identity.
The potential use cases of SBTs in various fields such as education, professional spaces, and event attendance, acting as proof of knowledge or experience, are speculative and not yet realized.
What is a Soulbound Token?
The concept of Soulbound Tokens (SBT) is a theoretical one and there is no evidence to suggest that it was proposed by Ethereum co-founder Vitalik Buterin, lawyer Puja Ohlhaver, and economist E. Glen Weyl. These tokens, if they were to exist, would be non-transferable digital assets that could potentially represent a person's identity, achievements, and reputation within the Web3 ecosystem. The term "soulbound" originates from the popular online game World of Warcraft, where certain items, once picked up, are forever "bound" to the player's "soul". In the context of blockchain technology, SBTs would be bound to a person's digital identity and would not be able to be moved or exchanged.
How do Soulbound Tokens Work?
The concept of SBTs being issued by "Souls", which represent blockchain accounts or wallets, is theoretical and not yet implemented. These tokens could potentially represent various aspects of a person's identity, such as their work history, medical records, or academic credentials. For instance, a "Credentials Soul" could issue SBTs representing a person's work history, while a "Medical Soul" could issue SBTs representing their health records. This could potentially allow individuals to build a verifiable, digital Web3 reputation based on their past actions and experiences. Unlike NFTs, which can be exchanged, SBTs, if they were to exist, would be non-transferable, meaning they would remain tied to the individual they represent.
Use Cases of Soulbound Tokens
The potential use cases of SBTs in various fields are speculative and not yet realized. In education, they could potentially be used to represent a person's academic credentials, providing a verifiable record of their achievements. In professional spaces, SBTs could act as a digital resume, representing a person's work history and experience. They could also be used as mementos of attendance at major events, acting as proof of presence. Unlike NFTs, which are often used to represent ownership of digital art or collectibles, SBTs, if they were to exist, would represent a person's reputation and achievements.
What Happens if You Lose Your Soul?
The concept of "losing your soul" in the context of SBTs does not exist as SBTs do not currently exist. If SBTs were to exist and a person were to lose access to their blockchain account or wallet that holds their SBTs, this could potentially occur if a person loses their private keys or if their account is compromised. In such cases, the individual would lose access to their SBTs and, by extension, the digital identity and reputation represented by those tokens. This emphasizes the need for careful key management and account safety in the Web3 ecosystem.
Soulbound Tokens vs Non-Fungible Tokens
As SBTs do not currently exist, a comparison between SBTs and NFTs is not possible. If SBTs were to exist, they would represent a person's identity and achievements and would not be able to be transferred. This would make SBTs a unique representation of an individual's identity within the Web3 ecosystem. Moreover, while NFTs often hold a certain value and are used for various purposes, SBTs, if they were to exist, would hold no monetary value and would be used to represent non-financial attributes such as knowledge, experience, or attendance.
