What are Soul Tokens?
Recently, Vitalik Buterin, one of the founders of the Ethereum project, published a white paper (together with E. Glen Weyl and Puja Ohlhaver) titled: "Decentralized Society: Finding Web3's Soul." The paper suggests a new and revolutionary token called "Soulbound Tokens," Which, according to the article, will be experimented with by the end of the year.
So, what are soulbound tokens? As you probably know by now, NFTs are nun-fungible, meaning they are unique and, therefore, can be used to indicate the ownership of unique digital data. But NFTs are transferable and can be traded by holders. However, soulbound tokens are non-transferable and bound for life.
What are they good for? Let's say you have graduated from an Ivy League school: Alongside the physical degree (or instead of it), the school will grant you a unique token that indicates that you have graduated from there. By its nature, this kind of token can't be transferred (you cant transfer your graduation).
By now, you probably thinking: What if someone hacks my crypto-wallet? Well, there is a suggested solution for this kind of problem in the article, but the important thing now is to get to know this concept: In the future, this will almost certainly be used in a decentralized web.
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