Did you know that the first NFT scam this year has cost the investors of 1.3 million dollars? This is the reason that SBT has been created so that the same doesn’t happen to you. Then what actually is SBT? They are actually soul-bound tokens, commonly known to the masses with the abbreviation SBT. Well, Buterin co-authored a 37-page paper describing Ethereum's future and its role in the "Decentralized Society" ecosystem a few weeks ago.
In particular, Vitalik Buterin mentioned the soul-bound tokens that should be available later this year. The name comes from the World of Warcraft video game, which Buterin has previously praised.
The basic idea behind SBT is that they are NFTs that some people can own based on their previous work and education history. It would be a representation of someone's reputation or accomplishments, since SBT are not transferable. Academic qualifications and work experience may be recorded in an SBT, thereby enabling a prospective employer to verify a candidate's qualifications and work history. SBT may bring like-minded people together for an event or a cause, which is also very good because it would unite the people and strengthen them to fight for their rights.
Buterin calls it a kind of ‘extended resume’ that would maintain people’s identities due to ‘unique, non-exchangeable badges’. The whole point of this is to help fight scams and identity theft in the world of decentralized finances.
Well, what do you think of it? Aren’t they cool?
Now the question is how would they work in this dynamic environment? Any ideas? No?
Vitalik Buterin believes that universities would issue degrees in the form of soul-bound tokens, and employers would award SBT to their employees. This new token system will make it impossible for identity thieves to steal someone's personal information. And it would also help employers to verify the job history or education of their potential workers during the hiring process. A person’s SBT would then be validated by other ‘souls’.
That stands for people who can ensure your credentials and accomplishments. It’s kind of similar to LinkedIn connections, where other people can verify your skills. The new SBT would be stored on a blockchain wallet, making it public, secure, and transparent.
Moreover, utilizing the tokens could make it easier for Decentralized Autonomous Organizations or groups without hierarchy or a single leader, to bring together representatives for a particular cause. An environmentally-minded DAO, for example, could airdrop SBT to people that already have environmental action SBT as a recruitment tactic. Vitalik Buterin hopes that soul-bound tokens would push Web3 forward by decreasing reliance on centralized companies. And people would have more power over their digital data.
The NFT artists would also have the opportunity to sell their artwork without the need to use platforms like Twitter or OpenSea, since they would be able to do it by themselves. The main problem with this concept lies in the way people receive SBT. Or simply how you should confirm your status and achievements. In spite of that, Vitalik Buterin thinks soul-bound tokens are "one step toward an alternative where NFTs can represent much more of who you are instead of just what you can afford." Although, that’s interesting how digital slavery can one day become digital liberation because of things like blockchain and Web3.
Interesting, right? Their success can surely bring a change to the world of crypto by at least reducing the scams, if not preventing them completely. Well now that we have picked up the name of Web3 you guys should also know that according to Butyric and his co-authors “SBT could specifically help push Web3, forward by decreasing reliance on centralized companies and giving people more ownership of their digital selves.”
In his paper, Buterin wrote that transferability mostly reveals the money orientation of Web 3.0, and how it might affect the long-term sustainability of the next generation of the internet. Although there are good use cases for buying and selling NFTs such as “funding artists and charities,” the downside should also be taken into account. It would require a lot of effort and technical knowledge to apply outbound news to NFTs, but it could mean that blockchains become the center of ecologic that is collaborative and fun, instead of just about money.
Also, SBT are earned and act like points, so what would happen if we were to lose them? Well, nothing to worry about. The SBT will be stored in Soul wallets. So, in case you lose the key to your soul address, it is easily recoverable. The Soul community member who loses the key needs to approve your recovery in order to get it back. However, Erin's vision of communal recovery wallets, which he discussed in January 2021, is similar to this proposed recovery technique. As a wallet security solution, it combines social features with privacy. Individuals are marketed SBT based on the promise of gaining control over their digital identity and personal data.
However, other people are concerned about the direction this may take. Web3 has been dubbed a “Trojan horse” by Forrester Research, which claims it promises a brighter future but contains the seeds of a dystopian nightmare. And as a matter of fact, researchers looked at the nine core ideas of Web3, such as decentralization and distributed autonomous organizations, and “smacks them all down.” Okay, how about the utility of the tokens? Don’t you think that a token with this much potential is bound to have great utilities? So what’s the wait? Let's check them out.
SBT can also play a vital role in the future of documentation and certifications. As Soul can issue infinite Soul-bound tokens, it has the potential to change the course of documentation from paper to paperless by bringing it to the digital network. Institutions and universities can use SBT to award degree certificates to graduates or undergraduates. SBT can be used as proof of presence for special occasions, events, web conferences, seminars, or others. Also, by issuing SBT to the limited person, the event organizer or host can call a controlled crowd for their purpose.
Likewise, users can create their own SBT and manage them according to your specifications to use with a variety of Web 3.0 platforms. Even SBT can also reflect your skill set and abilities once it is added to your Soul. So, maybe in the future, SBT could emerge as a digital portfolio or CV for Web 3.0 and defy consumers. Furthermore, users can curate a set of guardians and give them the power to change the keys of their soul wallet. These guardians could be close friends, family members, trusted institutions, etc. A conversation with these guardians, a face-to-face meeting, or a variety of other methods can authenticate the owner of the soul's address, he said in the bulletin.
Well last but not least we also have great news regarding the launch date of these tokens. Can anyone guess it? The soul-bound tokens will launch shortly this year and will come in the Ethereum blockchain, while it will be fully launched in 2024 because according to sources, Vitaliy has “greater plans for the future of the soul-bound tokens or SBT”.
Overall, we cannot deny that Web 3.0 has the ability to alter every element of human living, including banking, after witnessing Defy's domination over the last decade. There are some limitations, such as a lack of Social Identity, which can be solved by SBT or Soul bound Tokens. And if not anyone, then I am convinced that integrating SBT into the Web 3.0 area will place human interactions at the center of the dewy, allowing financial services such as collateralized loans and lease agreements to be unlocked. I am hoping that the new Web 3.0 financial infrastructure will protect the conventional economy’s value.
Now that we have come to an end to this video, let us thank you all for staying with us till the end. Don’t forget to let us know in the comment section what are your views regarding the SBT tokens and their utilities. What do you think, are SBT a good idea, and if you could choose an SBT which one would you have? Let us know in the comments below. That's all for this, and I hope you learned something new today.
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