what are Soulbounds Tokens; and what is its importance? – Money Times

Soul tokens are transferable NFTs that make up your identity on Web 3.0 (Image: Foundation / Matt Reamer)

A document entitled “Decentralized Society: Finding Web3’s Soul” was published in early May, written by E. Glen Weyl, Puja Ohlhaver and Vitalik Buterin, founders of the smart contract network. Ethereum (ETH).

This is the so-called “white paper” of a new token model Soulbound Token (SBT)Web 3.0 aims to authenticate certificates, documents and diplomas “related to the soul of the user”.

It’s an idea soulbounds tokens be kind of non-fungal token (NFT) it created an inalienable and permanently linked to the user.

“If someone shows you that they have an NFT that can be obtained by doing X, you can’t tell if they’ve done X themselves or if someone else has just paid to do X. Sometimes that’s not a problem {…} But what happens. We want to create NFTs Isn’t that just who has the most money, and they’re really trying to figure it out? ” Vitalik wrote in a blog post in January this year.

Vitalik’s proposal is to create a personal identity in web 3.0, authenticated through technology. block chain forman NFTs without monetary value and non-transferable.

One of the apps is the idea of ​​changing the hiring method from checking a candidate’s LinkedIn to checking their “chain” resume, which shows you transferring your “soul” to college. SBT.

Buterin says, “‘Souls can encode networks of trust in the real economy to establish their origins and reputation.’

again, cryptocurrencies and NFTs the user has custody of the keys to their funds and digital assets, with SBT you own the keys to your credentials.

According to The Defiant, the chain’s credentials are already being used by companies like 101 and RabbitHole.

Why are Soulbound Tokens (SBT) important?

As Vitalik puts it in his “white paper,” Web3 is now more concerned with the expression of transferable assets than “trust coders”.

However, for the authors of the document, many key economic activities, such as the construction of unsecured loans and personal brands, are permanent and non-transferable relationships.

In this sense, tokens “bound soul”(SBT) can strengthen real-world trust networks that express the commitments, credentials, and assessments of“ souls ”to establish authenticated backgrounds and reputations via blockchain, according to the authors.

We call this the “Decentralized Society” (DeSoc) the richest and most pluralistic ecosystem: co-determined sociability, where souls and communities come together from the bottom up, creating goods and network minds together as emerging properties of each other. different scales, ”wrote Buterin.

A soul purse for your soul

As the founder of Ethereum suggested, only SBTs could be made, or universities and the like, to a specific address associated with the “soul” of the Internet user. Web 3.0.

The user, in addition to his virtual wallet, should save his funds NFTs, a wallet to store your SBTs. Called the Soul Wallet.

These wallets can be used as user identities Web 3.0because they may have diplomas, certificates, permanent copyrights, and the like.

Don’t sell, don’t lose, your soul

One of the issues Vitali already raised in the white paper was the recovery of these Soulbounds Tokens if the user loses access to the soul wallet.

For him, social recovery is an emerging alternative based on a person’s relationship of trust. SBTs allow for a similar approach but, according to Vitalik, a broader one.

The authors proposed the idea of ​​restoring the community’s wallet, which means that members of communities of the soul should be allowed to retrieve the private keys of the soul.

“A stronger solution is to link soul recovery with community soul associations, not the commissioner, but to rely on a broad set of real-time security relationships.”

You SBTak representing a user’s affiliations with different communities. Some of these communities may be out-of-chain (e.g., employers, clubs, universities, or churches), while others may be in-chain or in-blockchain, such as participating in protocol governance or decentralized autonomous organization (DAO).

“In a community recovery model, a private key should be authorized by a qualified majority of a soul community (a random subset) to recover a private key,” the white paper says.

What is the future of your soul in the blockchain? For experts, it starts with games

For Caio Vicentino, NFT collector and Maker DAO ambassador to Brazil, SBTs will be widely used to facilitate the issuance of certificates by universities in a few years, “after all, no one wants to sell your medical degree, for example.”

“In NFT format, commercialization would be possible, in the case of SBT it will stay in your wallet forever. It is transferable. There are also events that you can use to make sure people are involved. The real meaning we will see in the future is very interesting, ”he concluded.

Marco Jardim, director of Blockchain Studio, recalled SBTak “Like most ideas,” are ideas copied from something that already exists. According to the practice, the premise already existed in games like “World of Warcraft”.

Vitalik mentioned the game in an article written in January this year to describe the origins of this technology, and the director of Blockchain Studio added that in the case of games it is not something revolutionary. In addition to this blockchain gaming industry that will encourage the adoption of technology. See Buterin’s reference to World of Warcraft in his blog post:

“The strongest elements of the game are related to the soul, and usually require the completion of an intricate quest or the killing of a very powerful monster, usually with the help of four to twenty-nine other players. So in order for your character to have the best weapons and armor, you will have no choice but to take part in the killing of some of these very tough monsters.

But for Marco Jardiment, what lies behind it is the challenge of creating an identity on the Internet, which for him is still fundamentally unsolved.

“I find SBTs much more useful as identification and certification. I believe that adoption will come through games, as they are now the ones who govern the Ethereum ecosystem and the EVM blockchains, ”he explained.

Jardim says that adoption can take on even stronger traction if it becomes “fashionable,” and in that case, users would take much longer to keep SBT up to date than it really is for the mechanics of technology.

“Some games will definitely put that into their mechanics, as well as calling players and appearing in the media. People who invest and research the identity of the blockchain are still very niche.”

Another problem it solves is game identification. Jardim explained that there is an attack called “Sybil attack”. It is common in block games that give access to an item to someone with a particular NFT within the game.

“The attack consists of the player submitting an NFT account to another account, so I pretend to be someone else, entitled to an item in the blockchain game. After this process, the player transfers the same NFT to another account and repeats the process. SBT would fix the problem that, ”he concluded.

Join our Telegram!

Join the Crypto Times team at Telegram. You get real-time news from the crypto world and can also participate in community discussions. Join the Crypto Times Telegram now!

Responsibility

O Money Times publishes journalistic articles aimed at democratizing information. Our publications should be understood as a means of advertising and disseminating newsletters, and not as an investment recommendation.

Leave a Comment