{"id":20071,"date":"2022-06-16T14:32:32","date_gmt":"2022-06-16T14:32:32","guid":{"rendered":"http:\/\/egrowonline.com\/?p=20071"},"modified":"2022-06-16T14:32:32","modified_gmt":"2022-06-16T14:32:32","slug":"social-credit-system-or-spark-for-global-adoption-cointelegraph-magazine","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=20071","title":{"rendered":"Social credit system or spark for global adoption? \u2013 Cointelegraph Magazine"},"content":{"rendered":"


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Ethereum co-founder Vitalik Buterin\u2019s Soulbound Token proposal for a robust identity and reputation system has stirred up the crypto community.\u00a0<\/strong><\/p>\n

Soulbound Tokens or SBTs are non-transferable, non-financialized tokens tied to a unique profile proving verifiable achievements and commitments. Still at the concept stage, it\u2019s suggested SBTs will be capable of tracking memberships, credentials and affiliations with educational establishments, decentralized lenders and other entities.<\/p>\n

Supporters say that SBTs could be the use case for the next bull market. But others have likened the concept to China\u2019s social credit system and say it\u2019s an \u201cexpensive solution to a problem that\u2019s already been solved.\u201d<\/p>\n

So, which is it? Let\u2019s take a deeper dive.<\/p>\n

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\"Soulbound
Soulbound Tokens: Not sure about the name but the concept is interesting.<\/figcaption><\/figure>\n

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Web3 should be more than financial assets<\/h4>\n

Last month, Vitalik Buterin and co-authors Glen Weyl and Puja Ohlhaver released a paper outlining their vision for Soulbound Tokens, which would enable individuals to accrue permanent non-tradeable records of merits and attributes and store them in a private blockchain wallet.<\/p>\n

These would form an essential building block for a decentralized society, or DeSoc, which points away from the current hyper-financialized state of Web3 and depends on non-transferable social relationships of trust. The crypto world, the co-authors say, will move past simple transferable financialized assets.<\/p>\n

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#Soulbound<\/a> might be the next biggest thing for #Blockchain<\/a> applications. The concept of an #NFT<\/a> that can identify unique individuals. Use cases are endless and can be the foundation of a decentralized society. The biggest next thing? Stay tuned!#Strader<\/a> #STDR<\/a> #Decentralized<\/a><\/p>\n

\u2014 Straderlabs (@straderlabs) June 8, 2022<\/a><\/p>\n<\/blockquote>\n

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The non-transferable Soulbound Tokens represent credentials, commitments and affiliations and are linked to our \u201cSouls.\u201d To put it simply, they are tokenized representations of a whole host of possible traits, features and achievements that make up a person or entity. Souls can also issue and attest SBTs to other Souls. Students will receive an SBT, for example, from a college, which will also be represented by its own Soul.<\/p>\n

Why we need Soulbound Tokens<\/h4>\n

Co-author Glen Weyl, an economist with RadicalxChange, provided the core ideas for the paper on Soulbound Tokens. When I get through to him on Zoom, he is just getting his board ready for a paddle around Lake Washington next to his house. As he saunters down to the waterfront, he explains why this new concept is vital.<\/p>\n

\u201cRight now, almost all the things that happen in the Web3 ecosystem are purely financial objects: They\u2019re transferable and saleable wrappers, like wallets of transferable saleable assets, like tokens and currencies, there\u2019s no actual such a thing as a person. All there is, is a financial holding account,\u201d he says.<\/p>\n

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