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- Ethereum Co-Founder talks about the future of Ethereum and some of its important aspects in the coming months.
- Soulbound tokens (STBs) would represent who an individual is rather than highlighting how much they can afford.
- STBs might be helpful in industries like educational institutions, etc.
Vitalik Buterin, the Ethereum co-founder, seems to have his vision regarding the Non-Fungible Tokens (NFTs) future.
This month, he has co-written a paper discussing the future of the second-largest blockchain network and how it would revolve around an ecosystem called The Decentralised Society.
And this future comprises a key element called Soulbound Tokens (SBTs), which the users can utilize this year itself. Buterin earlier praised the World of Warcraft’s soulbound items, and apparently, the SBTs are derived from them.
What are SBTs?
Soulbound Tokens (SBTs) are NFTs that an individual can earn based on their part in a job or their educational qualifications. Compared to the regular NFTs, one distinct feature they have is that they are non-transferable. According to the Ethereum co-founder, SBTs would represent someone’s accomplishments and reputations, a kind of an extended resume.
And that they should be presented in the form of non-transferable tokens revocable by the issuer and could be utilized to represent the commitment to the real-world event and project.
Overall, the focus is to boost people’s social identities by customizing them with unique and non-exchangeable badges. And these tokens can also solve issues like fraud and attacks in the DeFi.
STBs could facilitate pushing forward Web3 by reducing dependency on centralized entities providing people with more ownership of their virtual shelves, highlighted Buterin and the co-authors.
Essentially, the focus of Soulbound tokens is creating an identity and representation of a user by providing them with unique traits and characteristics like no one have. Unlike NFTs, SBTs will represent who a person is rather than what they can afford. And this seems to be quite useful in educational institutions, DAOs, etc.
Then comes the concept presented by Buterin, which is of Souls. SOULS are primarily accounts or wallets on a blockchain that hold Soulbound tokens and form a Web3 identity.
If the blockchain-based ecosystems execute SBTs, they have a range of enhancement opportunities in creating market standards, compensating strategic behavior, measuring decentralization, etc.
At the time of writing, Ethereum is trading at $1,836 with a market cap of $222,117,021,516 and is down by around 6.7% in the last twenty-four hours.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
