Inspired by the “World of Warcraft” video game, Vitalik Buterin wants to create a non-fungible token that we could no longer exchange once received. Explanation.
At the moment, the cryptosphere looks gloomy. Doubt has taken over decentralized finance (DeFi) and the NFT market, these digital certificates of authenticity stored on the blockchain and associated with a virtual object, are showing a severe slowdown. Despite this gloomy atmosphere, new Web 3.0 projects are flourishing. Among these, “the future of Ethereum”. Just that! At least, according to Vitalik Buterin, the co-founder of the second most famous blockchain, after Bitcoin. The name of this revolution: the “Soulbound Token”, or SBT.
Based on the popular “World of Warcraft” video game, the term “soulbound” refers to an object that is bonded to the player once his character is equipped with it. Any exchange becomes impossible in retrospect. A principle that Vitalik Buterin wants to apply to non-fungible tokens. In a research paper Released online on May 11, the Russian-Canadian programmer announces that he plans to create NFTs that could no longer be transferred once received. They would remain forever in the wallet, called the “wallet of the soul”, of their owner.
There are many use cases for SBTs, starting with college degrees. Indeed, if a certificate took the form of an NFT, nothing would prevent its holder from transferring it or selling it to a third party who has not met the conditions for obtaining it (years of study, exams, etc.).
Another situation where “soulbound” tokens would make sense is to hire people who have attended an event. The SBT would show that the holder actually moved and did not simply acquire the token by purchasing it on a market. Naturally, in the event of deception in obtaining it or failure to comply with the conditions related to its possession, the SBT could be revoked by the entity that issued it.
A “non-transferable” NFT after receipt? The idea is far from unanimous, as noted Cointribuno. His detractors specifically argue that SBTs are just “classic” certificates that don’t need the blockchain to exist. And to remember that the main interest of this technology is precisely based on the maximization of transactions.
But no matter, the Ethereum co-founder firmly believes in the possibility of integrating non-financial elements into Web 3.0. The first soulbound tokens are expected to be available later this year.
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