Soulbound Tokens (SBTs) are unique digital tokens that represent an individual’s or entity’s identity and cannot be transferred or sold. SBTs are issued by Souls, which are essentially blockchain accounts or wallets that hold or issue these tokens. SBTs can store various types of information, such as medical records, work history, and educational credentials, to name a few.
One of the main goals of SBTs is to establish a verifiable digital reputation system based on an individual’s past actions and experiences. Souls can represent both individuals and entities, such as companies, issuing SBTs to each employee or member. SBTs can have a wide range of potential use cases, such as job applications, education history, and health records.
In Web3, SBTs can serve as an alternative to traditional credit scores and governance models for decentralized autonomous organizations (DAOs). SBTs can potentially improve the integrity of DAO voting systems by deterring corruption and Sybil attacks, which are one of the biggest threats to the current DAO governance model.
