Vitalik Buterin: Soulbound Tokens, the Future of Ethereum and NFTs

Vitalik Buterin: Soulbound Tokens, the Future of Ethereum and NFTs

May 25, 2022 Off By Roland G

“The future of Ethereum is in the identity of the individual on the blockchain,” says Vitalik Buterin, founder of Ethereum, the second-largest crypto by market cap. 

Vitalik Buterin

Buterin proposes his vision of the future of non-fungible tokens (NFTs), which he believes will breathe new life into the industry: the “Soulbound,” property of an item from the online MMORPG World of Warcraft. 

Note that Soulbound is a property of an object that prevents it from being traded via mail or auction. Soulbound items are acquired by achieving specific objectives or by killing specific bosses in the game. 

Following this, Buterin feels that Soulbound coins can alter the industry in terms of blockchain and web3. Soulbound tokens should be presented as non-transferable, revocable tokens that can be used to indicate a particular level of commitment to real-world events and projects. 

Furthermore, Buterin’s next proposal is “Souls,” which are blockchain accounts or wallets that hold Soulbound tokens and constitute a Web3 identity. 

Additionally, blockchain-based projects can benefit from SBTs in ways such as assessing decentralization, defining market norms, rewarding strategic conduct, and more. 

Note that the major purpose of Soulbound tokens is to provide users with identity and representation by providing them with unique features that no one else has. SBTs, unlike traditional NFTs, will reflect who a person is rather than what he or she can afford.