Friday, December 9

Vitalik Buterin Presents Future of Ethereum and NFTs By Introducing Soulbound Tokens

As the fame of Web3 and the NFT industry is slowly reducing, Vitalik Buterin proposed his vision of the future of NFTs that may bring a second breath to the industry:  the “Soulbound” property of an item from the online MMORPG World of Warcraft.

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First and foremost, it is important to clarify what the Soulbound property is. Soulbound is a property of an item that makes it non-exchangeable by mail or auction trading. The game distributes Soulbound items for accomplishing certain quests or picking them up by killing unique bosses.

The soulbound property usually increases the worth of the item on a secondary market. Since it is impossible to sell or transfer soulbound items, users sometimes sell their accounts just to make money off one item. In terms of Blockchain and web3, Buterin agrees that soulbound tokens have the potential to turn the industry. Soulbound tokens should be presented in the form of non-transferable tokens revocable by the issuer and could be used to represent a certain commitment to real-world events and projects.

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By integrating SBTs, blockchain-based ecosystems have a series of advantages in fabricating market standards, measuring decentralization, compensating strategic behavior, and many other areas. But the main point of soulbound tokens, after all, is creating an identity and representation of a user by giving him/her distinct traits that no one else has. In contrast to NFTs as we know them, SBTs will represent who a person is rather than what he or she can take.

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