Vitalik Buterin imagines the future of NFTs with SoulBound Tokens (SBT)

A revolution in motion for NFTs – The non-fungible tokens (NFT) have been a hot topic since mid-2021. However, they still have ample room for improvement. In fact, according to Vitalik Buterinthe next evolution of NFTs lies in SoulBound Token (SBT), Non-transferable NFTs. Let’s go back together on their characteristics and their use cases!

SoulBound: the new type of NFT imagined by Vitalik Buterin

NFTs have become a central topic in the crypto ecosystem since their explosion around August 2021. Since then, more than $ 20 million of NFT are exchanged dailyaccording to the data compiled by nft-stats.

Last January, Vitalik Buterin presented a new type of NFT which, he says, will allow “Codify the networks of trust of the real economy to establish provenance and reputation”.

Vitalik Buterin presents SoulBound Tokens – Source: Twitter

More recently, Vitalik Buterin, accompanied by E.Glen Weyl And Puja Ohlhaverhas published a scientific paper examining this new type of NFT and its potential applications.

baptized “Token SoulBound (SBT)”these tokens incorporate the characteristics of NFTs, adding a notion of non-transferability. Therefore, any SBT issued and awarded to a particular address cannot be transferred to another address.

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What applications for Soulbound tokens?

When he first published these, Vitalik Buterin compared these tokens to account-related items. Also, there are already a few in the World of Warcraft game.

Since then, he has envisioned many other possible use cases for SBTs. He details them in particular in the context of his shared publication with E. Glen Weyl and Puja Ohlhaver:

“A person may have an address that stores SBTs representing their credentials, work history, or the hash of their writings or artwork.”

These SBTs can also have other applications within the DAO framework, enabling theappearance of a DeSoc (Where is it decentralized society), as explained in the post:

“We begin by explaining the DeSoc primitives, centered on accounts (or wallets) holding non-transferable (initially public) ‘SoulBound’ (SBT) tokens representing engagements, referrals and affiliations. These tokens would be like an extended CV, issued by other wallets attesting to these social connections. “

This new type of NFT and theirs social dimension could lead to many applications, such as:

  • Establish the provenance;
  • Unlock under-collateralised loan markets with reputation;
  • Enable decentralized key management;
  • Countering and compensating for coordinated strategic behaviors;
  • Measure the decentralization;
  • Create new markets with separable and shared rights and authorizations.

Many applications that would allow you to imagine a new way of managing social links and reputation on the blockchain.

As we have just seen, the co-founder ofEthereum never stop imagining the future of its network. Already, last January, he presented an evolution of the baptized EIP 1559 “Multidimensional EIP 1559”.

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