Daily feed｜【Must Read】SoulBound Token (SBT) will be the beginning of NFT to truly change the world? (superior)

What are Soulbound Tokens?

In May of this year, the founder of Ethereum, V God, together with the economics and sociologist E. Glen weyl, and the lawyer Puja Ohlhaver published the paper "Decentralized Society: Finding the Soul of Web3" on the soul-bound NFT. The concept is in the block world. Arousing great repercussions, the emergence of this non-transferable, non-financialized token may be the beginning of NFT's real change.

How does the SBT feature solve existing problems?

The soul-bound token is called SBT, which is not directly related to our soul, but conceptually, once bound, it will always be imprinted on the soul and cannot be transferred or changed. In practice, it is an NFT that cannot be transferred, cannot be resold, and has no secondary market.

To understand the positioning of the real world, NFT is a reliable, decentralized and credible electronic commodity. Therefore, the application scenarios of NFT include artworks, membership cards, souvenirs, electronic commodities, etc.

However, NFT does not have the function of "not for sale" in the real world, and these "not for sale" are often very important to us, such as: ID card, university certificate, employee card, medical records, credit records, etc. These things are extremely important to each of us, but are not attractive to others. When applied to the blockchain, SBT is needed to fill the gap in this function.

SBT Application Scenario - Social Credentials

One of the most important uses of SBT is social proof. Social proof means all the proofs you have in the society, the scope here is very broad and depends on the current society. Generally, it can be understood as ID card, academic certificate, credit record. SBT is permanently linked to your personal wallet, no one can take away your identity, and you cannot buy a doctorate from Taobao in the future. However, your bad records will also remain, and they will stink forever.

As for the reform of credit records, it could also free the masses from the core of power. Credit records/credit records are extremely important to each of us, and bad records will affect our rights in different areas of life, such as the right to borrow money, go abroad, etc.

In the past, these records were controlled by centralized power, from top to bottom. If the power balance is improper, or there are gaps in the system, the records of the common people will be controlled by the upper class, causing social injustice. The invention of SBT changes records from centralization to decentralization, and the structure changes from top-down to bottom-up. Every record of yours, whether good or bad, will be witnessed by the entire blockchain, and no one can control it.

Another example is medical records. In the past, we might have different records when we visited different places. With the invention of SBT, all records will be unified, so there is no need to worry about losing them, and no need to spend time managing them, and no one else has to spend time verifying them.

In the same way, such proofs can also strengthen the cohesion of the NFT community today. A community needs NFT Sold-out to form, but a community needs a HODL (strong hold) for a community to cohere. However, because of the resaleability of NFT, community managers/project parties cannot guarantee 100% of the community. The unity of group members makes it difficult to formulate targeted operating policies.

The reason is like a school. It was originally a girls’ school, so only women’s toilets were built. However, due to the change of holders caused by the NFT secondary market, after a month, the ratio of boys and girls became 50:50, then the school would start to worry. The men's toilet is going to be built again. SBT ensures that members are consistent, that everyone stays and contributes to the community, and the community can gradually grow stronger.

The next chapter is to be continued.

by @myttt.eth