A new feature on the ethereum blockchain. The Canadian developer shed light on what he described as the ‘future’. Soulbound Tokens (SBT) are pretty much like Non-Fungible Tokens (NFT), a big difference being the fact that they are non-transferable. SoulBound tokens are a unique form of NFTs. A Soulbound Token depicts a particular holder’s innate abilities, qualifications that they have earned, and any other characteristics that are peculiar to them.
The SoulBound token which is scheduled to go live by sometimes later this year was introduced as an immutable a
nd non-transferrable digital signature for the verification of information authenticity and the integrity of concerned entities
Alongside Glen Weyl, an economist at microsoft; Puja Ohlhaver of Flashbots Ltd.; Vitalik Buterin prepared an explicit whitepaper stating the mechanics of the new soulbound token and how it can be used to create and verify originality and authenticity in applicable cases.
SBTs are designed to further widen the scope of application for NFTs. According to the whitepaper’s specifications, institutions and organizations can issue verifiable certificates and personal documents in the form of soul tokens. In contrast to NFTs; these soul tokens cannot be transferred or traded but can be revoked by the issuing entity/organization.
However, in case of losses, an owner can only be offered a new soul token by the organization.Organizations issuing the soul token are decentralized, new tokens are issued and lost tokens can only be replaced via a community consensus.
Ethereum has been a pace-setter in blockchain invention, having introduced NFTs and DeFi; the soulbound token could set off an era of blockchain adoption as a tool for information verification. More use cases are bound to arise when the soul token goes live later this year.