{"id":13049,"date":"2022-09-15T07:00:14","date_gmt":"2022-09-14T23:00:14","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=13049"},"modified":"2022-08-15T16:39:07","modified_gmt":"2022-08-15T08:39:07","slug":"soulbound-tokens-future-of-crypto","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hant\/soulbound-tokens-future-of-crypto\/","title":{"rendered":"Soulbound tokens – Future of Crypto"},"content":{"rendered":"
Excerpts from CareYourPresent \u2013 a crypto enthusiast<\/em><\/p>\n

Soulbound tokens – Future of Cryptocurrency<\/h2>\n<\/header>\n
\n

Soulbound tokens (SBT)\u00a0<\/strong>were first mentioned in a by in a paper<\/strong><\/a>\u00a0published by Vitalik Buterin and others on May 11th, 2022. In the paper, Buterin et al suggest that even until now Web3 focused on \u201ctransferable and financialized assets, rather than encoding social relationships of trust\u201d.<\/p>\n

<\/figure>\n<\/div>\n
<\/div>\n
\n
\"soulbound<\/div>\n<\/header>\n
<\/div>\n
\n

Abstract of the Soulbound tokens paper<\/h2>\n

Web3 today centers around expressing transferable, financialized assets, rather than encoding social relationships of trust. Yet many core economic activities\u2014such as uncollateralized lending and building personal brands\u2014are built on persistent, non-transferable relationships. <\/em><\/p>\n

In this paper, we illustrate how non-transferable \u201csoulbound\u201d tokens (SBTs) representing the commitments, credentials, and affiliations of \u201cSouls\u201d can encode the trust networks of the real economy to establish provenance and reputation. <\/em><\/p>\n

More importantly, SBTs enable other applications of increasing ambition, such as community wallet recovery, sybil-resistant governance, mechanisms for decentralization, and novel markets with decomposable, shared rights. <\/em><\/p>\n

We call this richer, pluralistic ecosystem \u201cDecentralized Society\u201d (DeSoc)\u2014a co-determined sociality, where Souls and communities come together bottom-up, as emergent properties of each other to co-create plural network goods and intelligences, at a range of scales. <\/em><\/p>\n

Key to this sociality is decomposable property rights and enhanced governance mechanisms\u2014such as quadratic funding discounted by correlation scores\u2014that reward trust and cooperation while protecting networks from capture, extraction, and domination. <\/em><\/p>\n

With such augmented sociality, web3 can eschew today\u2019s hyper-financialization in favor of a more transformative, pluralist future of increasing returns across social distance.<\/em><\/p>\n<\/div>\n

\n
\"SBT\"
Source:\u00a0Paper written by Vitalik Buterin<\/a><\/figcaption><\/figure>\n

In short, Soulbound Tokens are\u00a0publicly visible, non-transferable tokens, which can be issued to wallets that are called Souls. Once issued, the tokens are bound to the \u201cSoul\u201d, thus enabling personal identification that was not possible in the past only with NFTs.<\/p>\n

In summary, SBTs are\u00a0NFTs that can\u2019t be transferred once received. You will hold it in a Soul wallet forever.\u00a0This will be a method for defining\u00a0\u201csocial identity\u201d in Web 3.0 and De-Fi<\/strong>. SBT will be you in future. So Cool!<\/p>\n

What would SBT be used for?<\/h2>\n

There are several use cases for Soulbound tokens (or non-transferable NFTs), likely there will be even more cases in future.<\/p>\n