{"id":7694,"date":"2022-05-28T12:29:33","date_gmt":"2022-05-28T06:59:33","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=7694"},"modified":"2022-06-04T19:45:09","modified_gmt":"2022-06-04T14:15:09","slug":"soul-bound-tokens","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/soul-bound-tokens\/","title":{"rendered":"Introduction to SBTs (SoulBound Tokens)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Soulbound Tokens or SBTs could be available as early as the end of this year.<\/p>\n

I decided to waste no time in dispatching this post so that you have everything you need to know.<\/p>\n

Too fast? Confused?<\/p>\n

Well, slow down. Take a deep breath and read on.<\/p>\n

1. What are SBTs?<\/h2>\n
\"SBTs\"
Visual depiction of Web3 – Image Credit: Ethereum Website<\/figcaption><\/figure>\n

Well, as early as April 2022, no one had heard about them. Then, come May 2022, Vitalik Buterin<\/a>, the co-founder of Ethereum<\/a>, published a research paper titled “Decentralized Society: Finding Web3\u2019s Soul<\/a>“.<\/p>\n

In this paper, apart from presenting his future vision for Ethereum & Web3, Vitalik speaks of a new kind of NFT \u2013 nontransferable & nontradable – to be held in your wallet<\/a>, called a soul, forever.<\/p>\n

2. Why hold SBTs when they are nontransferable & non-tradable?<\/h2>\n

Interesting question. The problem with the common man is that NFTs<\/a> have come to represent just one utility – make money by flipping them.<\/p>\n

In reality, NFTs could technically be programmed to replicate and perform thousands of real-world actions. In this regard, SBTs are proposed to tokenize information about the individual holding them. Think of it as a tokenized profile.<\/p>\n

3. So SBTs are really my resume as an NFT?<\/h2>\n

Yes and No. SBTs might be your resume in layman’s terms but the critical element here is that you can lie on your resume but not on your SBT.<\/p>\n

This is because your SBT will be issued and attested by other SBT issuing bodies.<\/p>\n

This is a game-changer because it takes away the need to verify your claims on your resume. Just as with NFTs, any SBT can be immediately checked for authenticity.<\/p>\n

4. What applications could SBTs have?<\/h2>\n

Millions. That’s the easy answer but let’s list the top 5 that come to mind:<\/p>\n