NFTs have become widely known in digital art circles, making it easier for digital artists to join in on profitable markets and give greater value to their work — but this is far from the only application for NFTs in the real world.
The idea of a soulbound NFT is gaining traction in the blockchain space, backed by crypto industry leaders such as Ethereum co-founder Vitalik Buterin. A soulbound NFT could completely change the way we view blockchain technology and its role in our lives and even set our status for life.
In this article, we will discuss soulbound NFTs, what they are, and what they represent for the future of the blockchain space. Keep reading to learn all about soulbound NFTs and how solutions like Webacy can help you protect your most important digital assets.
What is a Soulbound NFT?
A soulbound NFT is a concept for a non-transferrable NFT, meaning only the original owner could ever be associated with it.
While the idea of soulbound NFTs is still in the conceptual stage, major players in the NFT space are already working on developing such tokens — including Ethereum co-founder Vitalik Buterin.
In May 2022, Buterin published a 37-page academic paper discussing the future of Web3 and the potential power of soulbound NFTs (abbreviated as SBTs).
According to Buterin, SBTs have the potential to represent many aspects of a person’s life, including commitments, credentials, and affiliations. Using these representations, Buterin asserts that SBTs “ — can encode the trust networks of the real economy to establish provenance and reputation.”
Tying Your Identity to NFTs: What the Future Could Hold
The idea of a soulbound NFT ultimately ties back to the nature of blockchain technology and its immutable ledger system.
A soulbound NFT could potentially represent your entire identity in a single token — from your college degree and employment status to your national citizenship and criminal records. The immutable ledger ensures this information is always traceable through an SBT, thus providing each individual with a comprehensive token that encapsulates all aspects of their identity.
This idea offers powerful use cases in many scenarios. For instance, in Buterin’s paper, he discusses how these tokens could be key to enabling a decentralized society by allowing any owner of an SBT to easily verify their identity, as these tokens are non-transferrable. This shows a future where people can see the potential of blockchain beyond just art, gaming, or finance; but rather in identity, status, and even history. The implications of a non-transferable status begs the thought: that access to your wallet is now even more important to preserve as a core need of being a digital citizen; much like protecting your birth certificate or passport.
Final Thoughts: Protect Your Blockchain Assets with Webacy
At the end of the day, it is hard for any of us to predict exactly where blockchain and NFT technologyies are headed. Soulbound NFTs could be a major game-changer in years to come, making the importance of protecting your blockchain assets all the more important.
At Webacy, we’re been building a safer Web3 for everyone. We began building the comprehensive protection you need to assure your NFTs, cryptocurrencies, and other blockchain assets are secure now, and in the future. Along with offering a digital wallet product with wallet backup features, we also provide:
- Backup Wallet Creation / Panic Button: Being able to have a backup wallet that you can rely on in case you lose access to your primary wallet; as well as a panic button to help you transfer your assets to a safe house wallet in the event of an exploit.
- Crypto Will Creation: With Webacy, you can create a final will for all of your blockchain assets, determining who your beneficiaries are and securing the future of your assets long after your passing.
- Web2 Account Memorialization: Our team at Webacy understands the importance of memorializing or deleting social media accounts after you pass.
- Inner Circle Transfers: Along with determining your beneficiaries for your crypto will, with Webacy you can also decide where your crypto assets and business accounts will be transferred within your Inner Circle. To get started with Webacy, visit our website and join our email list today.