Overview
Soulbound Tokens (SBTs) were proposed by Vitalik Buterin as a way to represent 'social identity' on the blockchain. Unlike standard NFTs, which can be sold or traded, SBTs are permanently linked to a specific wallet (the 'Soul').
Use Cases
- Education: Digital diplomas that cannot be sold to someone else.
- Governance: Distributing voting power based on reputation or contribution rather than wealth.
- Credit Scoring: Verifiable history of loans and repayments that stays with the user.
- Medical Records: Secure, portable health data owned by the patient.
Significance
SBTs enable the creation of a 'DeSoc' (Decentralized Society) where trust and reputation are built on verifiable, non-transferable history.