12.5 C
New York

Ethereum cofounder say ‘soulbound tokens’ will verify school and employment stored in ‘souls wallet’


Ethereum cofounder, Vitalik Buterin wrote a paper in which he talked about the future of “soulbound tokens.” In the paper he laid out the future of Ethereum and their goal to create what he called a decentralized society. 

One of the main aspects of this kind of ecosystem is “soulbound tokens,” or SBTs. They are NFTs that someone can earn based on work history and education. While they are NFTs, they are not transferable, meaning that  each NFT is unique, but cannot be traded. It would be like an “extended resume,” as Butterin wrote. 

The purpose of the SBT and the decentralized ecosystem is to bolster people’s social identities with an NFT that displays their work and school histories and help solve key issues in DeFi like scams. 

According to the paper, there are a few different ways we can use the SBTs. Say a university began to issue its degrees with SBTs, a business gave its workers SBTs, or a concert gave out SBTs to attendees. The likelihood of these SBTs to be impersonated by a scammer is much lower. Furthermore, they can also be used by employers in the hiring process.

These tokens could be pivotal for DOAs, as they could more easily bring members in for an event. Essentially they would be able to find members based on a like minded SBT a person has. 

This creates a system of validation in which a person’s SBT is vouched for by the “soul” of another. They would also all be stored in a wallet and on the blockchain, much like software crypto wallets today. 

Butterin and his co-authors suggest that SBTs will be pivotal in the development of Web3 which would then be able to stay away from centralized companies and secure the people’s ownership of their digital selves. For example, if SBTs behaved like normal NFTs, they would be transferable, meaning the SBT of someone’s college degree could be sold. It would be much harder for people to fabricate  their own identities as well.

Related articles

Recent articles