If you thought that Soulbound was just going to be a term in World Of Warcraft, well, you’re wrong. It is not on the verge of becoming a permanent and most integral part of the Web 3.0 interface. How’s that? Let’s find out:
- Vitalik Buterin, the co-founder of Ethereum, recently co-wrote a paper on SoulBound Tokens. They are now popularly known as the SBT Token.
- The first line of SBT Token is predicted to be available by the end of 2022 for early access.
- SBT could turn into a global phenomenon by 2024.
Understanding The SoulBound Tokens
Soulbound Tokens are the type of NFTs available for users to acquire. However, once you acquire them, you can’t transfer them to another person or wallet. It will be stuck with you forever.
The idea for the Soulbound token is inspired by the all-time popular game, The World Of Warcraft.
The development of Soulbound tokens will also prompt the development of Soulbound Wallets or Soul Wallets. These will be unique wallets that will allow users to store these SBTs.
For security purposes, an idea proposed by Vitalik Buterin is about assigning roles to trusted entities. These people will be the guardians and have the power to access and edit the individuals’ wallets.
Soulbound Tokens will also kickstart the all-new concept of a Decentralized Society, also known as DeSoc.
The Use Cases For SBT – What Makes Them Valuable?
There are many ways the SBT can become highly valuable. The Web 3.0 era will trespass the boundaries of the Digital and Physical realms. It will blend the two worlds. So, the best example is the Achievements or Medals that you acquire in the games.
On Web 2.0 or offline games, you have certain characters. After completing certain tasks or achieving a specific feat, you acquire badges, medals, or achievements. They stick with your character. A good example of these is in Call of Duty Warzone or Players Unknown Battlegrounds.
Now, let’s take a glance at the use cases of SBT:
- Proof of qualifying for a specialized or professional course. Universities, colleges, and other institutes could offer it as proof of qualification for an individual. A digital counterpart of diplomas, degrees, etc.
- A digital counterpart of Social Security Number, ID Cards, Driving License, etc.
The above-given use cases are something almost everyone is suggesting for the SBT. But, there could be more to it.
Decentralized Finance and Decentralized Governance aren’t the peaks of Web 3.0. Soulbound Tokens are going to make Decentralized Society possible. That is the reason for them to be called the ‘Soul’ of the Web 3.0 interface. What does it mean for you?
- SBTs can be the digital imprint of your records. The complete achievement, database, and more of a person.
- It can help you achieve a better governance system than the DAOs. By fusing DAOs, we are looking at a remarkable accomplishment.
However, some rarer use cases of SBTs are:
- Loyalty programs where a first-time member of a certain company, or service, will receive an SBT. As they progress, their SBT evolves and allows them access to certain perks. However, it never fades away and retains value.
- Similar to Loyalty Programs, it could be a great way for celebrities, artists, and content creators, to meet their fans and weed out the most loyal or oldest of fans during their concerts, live performances, and other events.
- SBTs could come as a badge or pass for certain affiliations and factions. This could help the members recognize each other and more.
Non-Transferable = Non-Profit – Are They Worth It?
The primary misconception about SBT (Soulbound Tokens) is that they are non-transferable, so you can’t make a profit off them. You can’t flip them, short them, or sell them during the increasing demands. But that’s the beauty of SBTs. They add more ‘exclusivity’ to owning them. Ergo, they could be available for a higher value, initially.
Not everything on Web 3.0 is about making money. This is another massive misconception. So far, everything in Web 3.0 has revolved around earning. Play2Earn, Run2Earn, and many other initiatives are popularized in the NFT and blockchain world. But that’s not what Web 3.0 is about.
SBT focuses on the social aspects and turning digital life into a reality. It is another great step in blending digital dimension and reality into a single domain.
Conclusion – We Need SBTs For The Social And Life Enrichment
As you can see, SBTs can become a prime example that Web 3.0 isn’t all about investments and earning money. It is also about offering a quality of life, and a highly qualitative experience. With new protocols like Decentralized Society, we could be looking at another massive development and revolution in the world.
If Facebook was the greatest innovation in Web 2.0 for social aspects, SBTs could be a similar success story for the Web 3.0 era.
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