Records of Identity: SBTs could be used to create unique records of identity. An example is invitations to online events, where holders of SBTs could be admitted to such events on presentation & verification. Another example is Wills & Gifts, where SBTs could be designed to identify the holder as the inheritor of a digital estate or receive the same as a gift subject to the passing or fulfillment of certain pre-defined conditions.<\/li>\n<\/ul>\n5. How would SBTs be programmed to cater to changes?<\/h2>\n The best part about SBTs is that they are expected to be revocable by the issuing body.<\/p>\n
Thus, if you no longer meet the continuing education requirements of your accountancy body, they could revoke & issue you a new SBT depicting the change of your status from being active to non-active.<\/p>\n
6. What if I lose access to my wallet?<\/h2>\n Well, this is a problem we all have with the digital space- losing the private keys to our wallets. From the perspective of SBTs, this is akin to losing the original degree conferred by your college!<\/p>\n
However, much like you losing your college degree prompts you to approach that college again for a duplicate, one could, effectively, see that you would approach the same SBT issuing body to help you recover your wallet &\/or create a duplicate.<\/p>\n
Vitalik veers towards the suggestion of Soul community members, designated by the individual, who could, subject to undertaking certain verifications at their end, help with the recovery of the wallet.<\/p>\n
The idea is that SBT wallets could be programmed to allow the wallet owner to designate specific trusted individuals &\/or institutions, to have part of the key phrase with them. Each designate, subject to verification at their end, may then reveal the part of the key phrase they hold.<\/p>\n
This community consensus on verification though is fraught with certain issues. Designated Soul community members could expire or the wallet holder may end up having a fight with them, which creates a breakdown in the recovery chain.<\/p>\n
Vitalik recognizes this flaw in the trustless environment he envisions & has suggested that this is an area that will evolve into perfection over time.<\/p>\n
7. Potential Issues<\/h2>\n The Crypto space has prided itself on chasing the ideal of a decentralized & democratized society. Unfortunately, SBTs will reveal identification traits that may allow members of the Crypto community to create exclusions.<\/p>\n
For example, today, your educational accreditation doesn’t matter when investing in a Defi protocol, but it could be made a requirement leading to exclusion from certain products.<\/p>\n
This is a simple and tame example. Utilizing identification traits for politically biased exclusions \u2013 cyberattacks or predatory financing to certain social groups – could be far more damaging.<\/p>\n
Vitalik raises this concern and offers solutions. He envisages that SBTs will need to have functionality that allows them to have restricted public viewing as a possible solution.<\/p>\n
8. Concluding Notes<\/h2>\n You should expect SBTs to be available on the Ethereum blockchain by the end of this year. The innovative concept is set to revolutionize Web3 & help transition us aggressively to a new decentralized way of living.<\/p>\n
The applications are enormous & shall help create new dimensions for the Crypto economy by providing verifiable authentication for various use cases.<\/p>\n
Adoption of the idea & management of potential pitfalls is the key to success.<\/p>\n ","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"
Soulbound Tokens or SBTs could be available as early as the end of this year. I decided to waste no time in dispatching this post so that you have everything you need to know. Too fast? Confused? Well, slow down. Take a deep breath and read on. 1. What are SBTs? Well, as early as …<\/p>\n ","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":9,"featured_media":7705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[112],"tags":[122,214,230],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/aayushbhaskar.com\/wp-content\/uploads\/2022\/05\/soulbound-tokens-explained.png","acf":[],"yoast_head":"\n
Introduction to SBTs (SoulBound Tokens) - Aayush Bhaskar<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n \n \n \n \n\t \n","gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/7694"}],"collection":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/comments?post=7694"}],"version-history":[{"count":0,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/7694\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media\/7705"}],"wp:attachment":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media?parent=7694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/categories?post=7694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/tags?post=7694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}