9 Fun Facts About Soulbound NFTs

June 22, 2022

A kind of NFTs claimed to be part of the web3 future.

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Ethereum co-founder @VitalikButerin believes that soulbound tokens (SBTs) will be “very important” in web3.

Imagine NFTs as your ID, resume, and passport.

Soulbound NFTs could make this possible. The idea is that these tokens would be “bound” to their owner’s soul.

Here are 9 facts about them.

1. Soulbound NFTs are non-transferable NFTs.

They can only be used by their owner, and they cannot be traded or sold.

2. Soulbound NFTs give a glimpse into others’ wallets, too.

You can tell one’s identities, accomplishments, or their hobbies by soulbound NFTs.

3. Soulbound NFTs could be used for a variety of purposes, including:

- Collectibles
- Decentralized identities: ID, licenses, passports, etc
- Accomplishments: diploma, certificates, etc
- Official proof: credits reports, police records, etc
- Voting/governance rights in communities
- Access to exclusive events

4. POAPs could be soulbound.

POAP, proof of attendance protocol, showcase events you actually have been to.
But currently, you can buy POAPs from others. Making them soulbound would make owning POAPs more credible.
For more info about POAP, check this.

5. Soulbound NFTs could protect your privacy.

For example, a soulbound NFT saying “over 18” could prove your adulthood, instead of revealing your actual age.

6. If you lose/forget your key to your soul address, community might help you with that.

Vitalik describes a method called “community wallet recover”.
It means when members from your soul’s community agree collectively, you can recover your soul’s key.

7. You might get Soulbound spam.

Since Soulbound NFTs are issued to users without their consent, you might get what you don't want. And you won’t be able to sell it.
One solution is to make them mutual consent so that the receiver has to approve the transaction.

8. Soulbound NFTs help bridge the web2 and web3 world.

NFTs can represent more of who you are and not just what you can afford.
It makes people real on web3.

9. Soulbound NFTs contribute to a more human economy in web3.

This creates a more personal relationship between the user and the token.
With soulbound NFTs. Web3 is not just about money.
And since the credentials are on-chain, there will be more trust between souls, too.


Soulbound NFTs are still in the early stages of development.

There is no standard format for soulbound NFTs yet, so each project is developing its own version.

What do you think of soulbound NFTs, a crypto ID, VIP card, or your web3 tattoo?

Sources

https://www.livemint.com/news/world/explained-know-about-soulbound-token-an-nft-that-ethereum-co-founder-calls-the-future-11653571677762.html

https://www.cnbctv18.com/cryptocurrency/what-is-a-soulbound-token-an-nft-that-buterin-touts-as-the-future-and-soul-of-web3-13610822.htm

https://www.youtube.com/watch?v=1VFKAkv4q54

https://vitalik.ca/general/2022/01/26/soulbound.html

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4105763

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