Vitalik Buterin, who created Ethereum, says that Soulbound tokens (SBTs) are “the future” of the cryptocurrency. SBTs are tokens that can’t be used for anything else and can’t be given to someone else. You would keep it in a Soul wallet for all time.
What do Soulbound Tokens mean?
Simply stated, you can’t give them to anyone else. Some people might not understand why a non-transferable NFT should be used. Even though there are many ways to use them, the fact that they can be passed on is a big reason for their popularity.
Is there a way to get Soulbound Tokens back?
Also, the Ethereum document that talked about SBTs said that the tokens could be taken away by the person who made them. People have said that Soulbound tokens can be found again with the help of the community if they are lost. So, the Soul is the combined vote of the people in its social network.
This is done by picking a group of “guardians” and giving them the power to change the keys to their soul wallet. Guardians could be people, organizations, or other things. Sad to say, this could lead to people not getting along with their guardians, the guardians dying, etc.
Why are there Soulbound Tokens?
Soulbound tokens can be used in several ways on Ethereum. Take, for example, a degree from college or university. An SBT certificate could be given to a graduate by a university. Because of how the technology works, if a university gave a degree in the form of a regular NFT, the graduate might be able to sell it. But if it was a Soulbound token, they couldn’t sell it or give it to someone else.
SBTs can also be used as tickets to events, which is another good example. Event organizers could check the SBT to see if a participant was at a conference or event.
Souldrops is the last example. These are airdrops that are calculated using SBTs and other tokens inside a Soul. For example, a DAO that wants to build a community around a certain layer 1 protocol could souldrop to developers who hold 3 out of the last 5 conference attendance SBTs or other tokens like POAPs that show attendance.
When will SBTs be able to be used?
Vitalik Buterin has said that early use of Soulbound tokens (SBTs) would be possible by the end of the year. Jason Levin (@iamjasonlevin) talked to the co-author of “The Future of Ethereum,” a 37-page study.
Vitalik and his coworkers would call this a “decentralized society” if what they hope will happen in 2024 does happen.
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