Let’s learn more about SBTs and the future of SBTs. Read on!

Soulbound tokens, also known as SBTs, are digital identity tokens that represent a person’s or an entity’s attributes, features, and accomplishments. It advanced NFT applications by utilizing blockchain technology. The soul in this case refers to your private wallet. The goal of SBTs is to transform the idea of NFTs into something that goes beyond cash and bragging rights to create unique and non-transferable tokens. Soulbound tokens are non-transferable NFTs that represent identity.

Uses of SBTs

SBTs are very useful for digital documentation and verification. SBTs are bound to their souls, making them impossible to fake and ensuring the legitimacy of the document. SBTs make it possible to build links in decentralized power structures that are more dependable. SBTs can filter people who misuse the famous artist name to sell their NFT digital collectibles in the marketplace.

The future of SBTs

SBTs are described as a "transformative, pluralist future" that will serve as the foundation for a decentralized society. Through the establishment of provenance and reputation, soulbound tokens can assist in resolving the problem of trust in Web3. Since they cannot be transferred, there is less chance that individuals will try to manipulate the ecosystem by purchasing status or fabricating accomplishments. Due to a more complicated method of identity theft and impersonation, this may also reduce the frequency of Web3 scams.

Conclusion

SBTs are assisting in the development of a DeSoc by establishing digital identity and provenance. Even though the idea of a decentralized society might appear abstract, there are still useful applications to be thought about. With their numerous applications in Web3, DeFi, and even everyday life, SBTs expand the idea of NFTs beyond the possession of works of art and bragging rights.