The Web3 ecosystem continues to grow with the introduction of innovative concepts. The latest development, Soulbound Tokens (SBTs), aims to expand the use cases of blockchain technology by overcoming obstacles in scalability and industry-wide interoperability.
Ethereum co-founder Vitalik Buterin, along with attorney Puja Ohlhaver and economist E. Glen Weyl, proposed the SBTs as a theory that builds on NFT use cases and provides a unique argument to make blockchain technology more valuable. SBTs are the latest addition to the decentralized tokenization league, which allows users to control their data, identities, and finances.
Compared to cryptocurrencies and NFTs, SBTs have the potential to offer new opportunities for both users and developers. ZAB Technologies, a blockchain development company, is closely monitoring the market before making SBTs available for development. In this article, we have given an overview of the Soulbound token, its use cases, and the possibilities of developing it.
Let us start with…..
What Is Soulbound Token Development?
The development of a Soulbound token refers to the creation of a smart contract on a blockchain platform like Ethereum. This contract enforces the rules of Soul-binding for the token. This development process includes designing the token’s interface, testing the token, and implementing security measures to prevent fraud & hacking.
The identity and credentials metadata of a human, an organization, or any other type of entity are stored in a non-transferable, one-of-a-kind SoulBound nft. These coins on the blockchain, like all others, are secured by cryptography.
The newest type of blockchain-enabled decentralized assets is SoulBound tokens, which are also known as crypto tokens and non-fungible tokens. They are the most recent development in the league of blockchain-enabled tokens, which also include NFTs and crypto tokens.
For identity cards, health records, employment records, criminal records (if any), academic records, etc., the SBT saves the identity and credentials metadata. This information is encrypted and unchangeable. A Soul is a wallet that holds these records. As a result, the development of Soul Wallet will drive up demand for web3 wallets.
Now let us have the…
Difference Between SBTs and NFTs
Even though SBTs are referred to as a part of the NFTs. They are way more different from Non-fungible tokens. Here is the major differentiation.
Non-Fungible Tokens (NFTs) and Soulbound Tokens (SBTs) barely differ from one another. Even little modifications result in significantly different use cases. Most probably, NFTS are use for asset tokenization. Like that, SBTs also have specific use cases based on the nature of their working process.
Use Cases of Soulbound Tokens in the Web3 Environment
Tokens that are Soulbound nft can be use in any area of our lives where we need to save or share records of our accomplishments or personal information. People will thus utilize SBTs to demonstrate their professional abilities, validate their credit histories, keep track of their medical histories, confirm their presence at various events, and establish their reputations.
Education and Employment History
In Web3, a person’s credentials pertaining to their educational and professional history can be represented via Soulbound nft. These may include transcripts, licenses, job histories, and resumes. A prospective employer will be able to tell from all of this information that all documents have been validated, proving the applicant’s qualifications.
Credit Records
Users can provide lenders access to their credit profiles, which will be represented by SBTs if they need to obtain a loan. Lenders will then be able to rapidly assess the user’s credit history and either approve or deny the loan based on how prompt the user has been with prior payments.
Healthcare Record Management
Blockchain-based tokenization has already demonstrated its effectiveness in addressing critical issues in the healthcare industry. In the past, it was often time-consuming for patients and doctors to access medical histories, verify identities, authenticate medical certificates and prescription slips, and perform other tasks. SBT nft would store each individual’s medical records in a Soul, resolving this issue permanently.
Digital ID and Membership
We can also use Soulbound nft to represent our identification documents and membership cards. Any type of institution, including gyms, sports clubs, libraries, and others, can give members SBTs so they can keep tokens in their wallets. People will have lifetime access to their data and visits as well as be able to maintain these tokens.
Additionally, users will find it easier to avoid always carrying a physical wallet stuffed with cards by storing all of their IDs inside a single digital wallet.
Attendance Verification
In today’s world, a Proof of Attendance Protocol (POAP) offers a use case that is very similar to this one. A POAP is an NFT that businesses utilize as part of their loyalty programs and marketing activities, whereas the primary function of SBTs is to confirm that the user actually attend an event.
Reputation Indicator
On the Web3 network, Soulbound tokens can also serve as a reputational indicator. Decentralized autonomous organizations (DAOs), which will be even more active in Web3, can be created with the assistance of people with a good reputation. For instance, those with respectable Soulbounf nft can obtain a majority vote to watch over the DAO’s integrity and defend the group from dishonest individuals.
Public Voting
One of the most significant events in a democracy is when citizens vote to elect their government. Even though electronic voting systems have made the process more efficient. Also it reduces issues, they are still susceptible to risks like identity theft, manipulation of voting machines, and other threats. However, SBTs are an excellent method for verifying identities and monitoring a voter’s past voting history, albeit at a high cost.
Tickets and POAPs
When attending an event, you may receive Proof-of-Attendance-Protocol (POAP) NFTs. While NFTs are commonly used for ticketing, SBTs provide a more secure alternative due to their non-transferable nature. This helps prevent issues such as forging, black market sales, and scalping of tickets. Simply having a ticket is not enough to prove attendance, but creating non-transferable POAPs can show that the original ticket holder was present at the event.
Overall, this is how Soulbound token are used in the web3 space. Based on these use cases, many token investors and crypto nerds are eager to invest in these tokens. For startups who want to start their own crypto-based business, it is a great opportunity and the right time to create Soulbound nft. Other than this there are many…
Benefits of creating Soulbound Token
Soulbound token development offer several key benefits, such as being non-transferable and non-sellable, ensuring the authenticity of documents, and reducing reliance on centralized authorities. Here are some more benefits of SBTs.
Reduce Dependence on Centralised Services
The majority of services are currently centralized, allowing businesses to access. SBT token gather our personal data for marketing and other uses. Data sovereignty is possible with Soulbound nft. Users will be in charge of managing their information and deciding who has access to it and why.
Non-Transferable & Non-Tradable
Unlike NFTs, acquiring SBTs requires effort, making them more valuable for reputation-building, loan eligibility, and accessing specific projects. While NFTs are easy to obtain and hoard, the work required to obtain SBTs means they have a wider range of uses beyond simple profit-making.
Guarantee Document Authenticity
The digital documentation and verification that Soulbound tokens offer are advantageous to both individuals and institutions. You can easily store and carry your documents wherever you go, and agencies can quickly verify their validity.
Enhance Trust in the Decentralized Security
DeSoc members will have access to Soulbound token, which will allow them to check people’s reputations. This will increase their trust in each other beyond what casual interactions on social media or digital projects can provide.
So with all these benefits, Soulbound nft attracts many crypto enthusiasts to invest in them. Soulbound tokens have the potential to revolutionize the crypto market for both investors and users. Moreover surpassing even NFTs and opening up new possibilities. ZAB Technologies, a leading crypto token development company, can help you establish a digital identity and provenance using Soulbound nft, utilizing cutting-edge technologies.
Soulbound Token Development With ZAB Technologies
It’s important to note that while the concept of Soulbounds nft is currently only at the paper level. Also has not yet been implemented in real-time. Our team of blockchain explorers stays up-to-date with the latest advancements in the industry and Web 3.0.
Zab Technologies offer a variety of development solutions including crypto exchange platforms, crypto payment gateway solutions, crypto wallet development services, DeFi platform development services, various blockchain & token development services, and more.
If you’re interest in exploring the idea of developing a Soulbound token, don’t hesitate to reach out to us.
