• SBTs: Personalized CVs in NFT-like form
• SBTs are designed to merge our analogue and digital personalities
• Success of the SBTs will depend on the characteristics of the Metaverse
Soulbound tokens (SBTs), like NFTs (non-fungible tokens), could soon go through the roof, speculates Buterin. But what is behind this new crypto idea?
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SBTs – the latest hit from crypto mastermind Buterin?
Vitalik Butterin is the best-known proponent of the new token class SBTs. Buterin has become known as the mastermind behind the Ethereum blockchain and the associated crypto currency Ether, whose market capitalization is only surpassed by the original cyber currency Bitcoin. Buterin has thus sufficiently proven his originality – it is therefore not surprising that the crypto scene takes a very close look at which innovations the crypto entrepreneur is planning next. On May 10, 2022, the Ethereum founder detailed his latest idea in a 37-page research paper he published with Microsoft specialists E. Glen Weyl and Flashbot’s Puja Ohlhaver.
What is an SBT?
Buterin, Weyl and Ohlhaver present the introduction of Soulbound Tokens (SBTs), loosely translated “tokens bound to the soul”. SBTs can best be described as NFT-like resumes (CVs), which transfer the personal achievements such as educational qualifications of “real” people into the multidimensional digital sphere (Web3). So everyone has access to their most important documents in the metaverse. Buterin emphasizes that these cannot be forged either by other users or by larger institutions. According to “Block Builders”, Buterin’s vision is that digital identities will have to be organized in a decentralized manner in the future in order to be trustworthy and at the same time enable innovation. Like NFTs, SBTs cannot be modified. However, the big difference between SBTs and NFTs is that SBTs cannot be transferred, they are instead tied to an individual.
possible uses
SBTs are similar to CVs because – at least according to the current idea – they are mainly intended to tokenize university diplomas, school degrees or prizes won. The institutions, such as universities, would themselves issue these SBTs to the graduates. This is to ensure the credibility of such documents.
However, the use of the SBTs should go beyond the documentation of educational qualifications. According to the project study, an SBT could serve as a ballot paper in decentrally organized referendums, as “Business Insider” reports. In addition, job references and personal recommendations can be made with SBT. Environmental NGOs could issue SBTs to supporters as proof of their support. The SBTs would create an “extended curriculum vitae” that is documented in the blockchain and stored in a “soul wallet”. Similar to a CV, people can delete individual SBTs from their “Soul Wallet”, for example if they no longer want to emphasize a previous activity.
How much personal information do we want in the Metaverse?
The success of SBTs will depend primarily on the essential question of how much users want to reveal of their true identities in the metaverse. Will the metaverse become an extension of real life, in which we want to take our names, our family and professional situation and our life achievements? Or will the Metaverse rather become a place of escapism, escapism, escaping into a fantasy world? So far, this fundamental question cannot be definitively answered.
If it were indeed the case that the Metaverse would be a three-dimensional social network with true identities, then the SBTs would definitely have a good chance of success. However, Buterin explicitly warns of potential dangers. SBTs could also lead to discrimination and bullying by acting as markers “automatically weeding out unpopular social groups or even targeting them for cyber or physical attacks.” Also, SBTs could be used by autocratic regimes to brand unpopular individuals. For this reason, it is of fundamental importance that each person can decide for themselves which SBTs should be anchored in their respective digital identity.
The latest mega trend?
Unlike NFTs, SBTs cannot be sold or purchased in the digital realm. They are therefore personalized and limited. As always, it will therefore depend on how the demand for the SBTs will turn out. The competitive situation should not be underestimated here: Big Tech companies such as Meta Platforms in particular, but also Apple or Amazon will probably try to disclose the identity of real people in the Metaverse as well. Unlike the SBTs, however, a centralized authority would then be responsible for this, which should lead to major concerns in terms of data protection. Not surprisingly, these IT giants are also interested in profits. However, companies that are specifically geared towards the crypto sector, such as the NFT marketplace OpenSea or the crypto exchange Coinbase, have meanwhile built up a great position of power in the cyber currency and NFT world. The SBTs could thus offer a popular, non-profit-oriented and decentralized alternative.
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