What are Soulbound Tokens; And what is its significance? – Money Times

Soul tokens are non-transferable NFTs that will introduce you to Web 3.0 (Image: Foundation / Matt Reimer)

E. A document entitled “Decentralized Society: Finding Web 3G Soul”, written by Glenn Weil, Puja Ohlehaver, and Vitalic Buterin, creator of the Smart Contract Network, was published in early May. Etherium (ETH).

This is a new type of token pattern called “white paper” Soulbound Token (SBT)The purpose of Web 3.0 is to authenticate certificates, documents and diplomas “connected to the soul of the user”.

The idea is that the sulbounds token Should be of a kind Non-Fungible Token (NFT) Non-transferable and permanently connected to the user who created it.

“If someone shows you that they have NFT that can be obtained by X, you cannot say that they have done X themselves or that they have paid someone else to do X only. Sometimes this is not a problem}…} but what we want to create NFTs It’s not just about who has the most money, and you’re actually trying to figure out something else? ” Vitalik wrote in a blog post in January of this year.

Vitalik’s proposal is precisely to create a personal identity on Web 3.0, which is authenticated Blockchain As NFTs Without financial value and not transferable.

The idea of ​​changing the recruitment method from checking a candidate’s LinkedIn to checking their “on-chain” resume is an application that will show you the “spirit” of the university you are transferring to. SBT.

“Souls can encode a network of real economy trusts and establish prestige and prestige,” says Buterin.

While together Cryptocurrency And NFTs Users have their coin keys and digital asset keys, you have the keys to their credentials with SBT.

According to The Defiant, on-chain credentials are already being used by companies like 101 and RabbitHole.

Why are Soulbound Tokens (SBT) important?

As stated by Vitalik in his “White Paper”, Web3 today revolves around the expression of transferable assets rather than “coding trusts”.

However, for the authors of the document, many essential financial activities – such as unsecured loans and personal brand building – are based on permanent and non-transferable relationships.

In other words, the token “.SpiritualThe (SBTs) that represent the values, credentials and values ​​of “Spirit” can, according to the authors, strengthen the network of real economy of trust to establish authentic origin and reputation through blockchain.

“We call this the richest, pluralistic” decentralized society “(DeSoc) ecosystem – a co-defined sociality, where souls and communities come together from the bottom up, as objects and network emerging attributes of each other to co-create intelligence. Different scales,” Buterin writes. .

A soul wallet for your soul

As proposed by the founder of Ethereum, SBTs can only be placed on the Internet at a specific address linked to the user’s “soul” or issued by universities and others. Web 3.0.

The user, in addition to his virtual wallet, to keep his funds and NFTs, Wallet to store your SBT only. Which is called Soul Wallet or Soul Wallet.

These wallets can be used as user identification Web 3.0Because it can contain diplomas, certificates, permanent copyright and the like.

Don’t sell or lose your soul

One of the issues that Vitalik has already raised in the White Paper is about the recovery of this Soulbound Token if a user loses access to the Soul Wallet.

For him, social recovery is an emerging option that depends on a person’s trusting relationship. SBT allows for similarities but, according to Vitalik, a broader approach.

The authors came up with an idea called Community Wallet Recovery, which means that the private key of the soul needs the consent of the members of the soul community to be recovered.

“Spiritual recovery is a stronger way to connect with soul associations in society, relying on a more comprehensive set of real-time relationships for security rather than curation.”

You SBTs Indicates the user’s affiliation with different communities. Some of these communities may be off-chain – such as employers, clubs, colleges or churches – while others may be on-chain or within blockchain – such as participation in protocol governance or decentralized autonomous organizations (DAOs).

“In the community recovery model, the recovery of a private sol key (random subset) requires the consent of the majority of eligible members of the sol community,” the white paper reads.

What is the future of your soul in blockchain? For experts, it starts with sports

Caio Vicentino, NFT collector and Maker DAO’s ambassador to Brazil, said SBTs would be widely used in a few years to facilitate the issuance of certificates, “for example, no one wants you to sell your medical degree”.

“In NFT format, commercialization will be possible, in case of SBT it will remain in your wallet forever. It is non-transferable. You can also use events to verify that people are participating. The real meaning we see in the future is very interesting, “he concludes.

Marco Jardim, director of Blockchain Studios, recalls SBTs It’s an idea that, like most ideas, is copied from something that already exists. According to Jardim, the area already exists in games like “World of Warcraft”.

The game was cited in an article written by Vitalik in January of this year as an example of the creation of this technology, and the directors of Blockchain Studios add that in the case of games, this is not something revolutionary. In addition to these blockchain game sectors that will motivate the adoption of technology. Check out Buterin’s quote from World of Warcraft in his blog post:

“The most powerful objects in the game are tied to the soul and usually require the completion of a complex quest with the help of four to twenty-nine other players or kill a very powerful monster. So, for your character to have the best weapons and armor, you have no choice but to take part in the killing of some of these extremely difficult monsters. ”

But for Marco Jardim, the challenge is to create an identity on the Internet that has not yet been resolved.

“I find SBTs more useful as identification and certification. I believe that adoption will come through sports, because that is what dominates the Ethereum ecosystem and the EVM blockchain today, ”he explains.

Gardim goes on to say that adoption could gain even stronger traction if it became “trendy” and that users would be more receptive to SBTs to stay up-to-date than technology mechanics.

“Some games will definitely keep them in their mechanics, even for calling players and appearing in the media. People who invest in blockchain and seek identity are still very specific.

Another problem she solves is the identity in the game. Jardim explains that there is an attack called “Sibyl Attack.” This is common in blockchain games that only allow a person with a certain second NFT in the game to access an item.

“In the attack, the player submits the NFT through another account, and so I pretend to be entitled to the item in the blockchain game. After this process, the player transfers the same NFT to another account and repeats the process. SBTs will solve this problem, ”he concludes.

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