Soulbound Tokens Could Take NFTs to the Next Level

by Jurica Dujmovic
By Jurica Dujmovic

There’s a new player in the NFT market.

Soulbound tokens — or SBTs — are redefining how credentials, qualifications and affiliations get authenticated and represented in the digital realm.

First, though, let’s return to the basics: Non-fungible tokens are transferrable digital tokens that stand as the only way to enforce ownership of digital assets. 

NFTs themselves are often seen as assets with monetary value. 

But SBTs have taken digital ownership to the next level.

Unlike traditional NFTs, SBTs introduce a novel concept: non-transferable digital tokens. 

These tokens are indelibly linked to a specific individual or entity. 

In a digital world where ownership and identity are often fluid and interchangeable, SBTs offer a stable, immutable anchor.

Applications and Use Cases

Unlike traditional NFTs, which primarily function as tokens of monetary value or collectability, SBTs serve as immutable digital records that are intrinsically tied to an individual’s identity and personal history.

This opens up a whole new world of possibilities.

Source: NFTnow. Click here to see full-sized image.

 

The non-transferable nature of SBTs makes them uniquely suited for representing aspects of personal identity that are not meant to be traded or transferred. This includes achievements, memberships and even personal traits or experiences.

In a digital world increasingly concerned with authenticity and security, SBTs stand out as a tool for individuals to control and convey their personal brand and identity.

This includes: 

  • Personal achievements, such as academic or industry awards. Can you imagine a world where your resume is submitted as an SBT?
     
  • Identity verification, something that is likely to grow in importance as web3 and the metaverse continue developing.
     
Source: Deloitte. Click here to see full-sized image.

 

  • Medical history, which can facilitate easier sharing of medical files between healthcare providers while maintaining patient privacy and consent.
     
  • Credit verification, which could make the loan application process much simpler.

And so much more.

In short: SBTs offer digital representation that is not only secure but also easily verifiable. And the immutability of blockchain technology ensures that once a credential is recorded as an SBT, it becomes a permanent and unalterable part of a person’s digital identity.

SBTs also present opportunities for integration with other emerging technologies like artificial intelligence, the internet of things and augmented reality. 

These integrations could lead to innovative applications, such as enhanced digital credentials verification or interactive educational experiences.

As we enter a bull market, I expect the technology behind SBTs to continue developing. And with that development could come intriguing opportunities.

I know I’ll be watching with great interest. You should, too.

Best,

Jurica Dujmovic

About the Contributor

Jurica Dujmović has been a creator, collector and investor in digital art, including the rapidly evolving non-fungible tokens (NFT) space since its inception nearly a decade ago. He’s also passionate about digital currencies and writes about crypto trends, including what’s new in the Weiss Crypto Ratings, in Weiss Crypto Daily. 

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