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V God: "Soul Binding" coin will become your blockchain passport

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The creation of SBT will create a richer and more diverse ecosystem for the decentralized society.

Original title: " Vitalik Buterin Wants Your Passport as NFT-like Soulbound Token on the Blockchain "

Original source: DappRadar

Original author: Jade Gao

Original compilation: CyberFunkz

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Vitalik Buterin (hereinafter referred to as V God) proposed a non-transferable Token called Soulbound Token (soul binding). The Token will be used to build the Web3 user identity system. While Web3 has made impressive progress over the past few years, its mass adoption has stalled, possibly because a solid identity system has yet to emerge. Recently, V God co-authored and published a paper to discuss what kind of "soul" Web3 should have and how to build a decentralized society through Soulbound Tokens (hereinafter referred to as SBT).

TL;DR:

· The paper is titled "The Decentralized Society: Finding The Soul of Web3". Among them, the paper introduces a non-transferable Token, which can be used to establish an exclusive social credit system for Web3.

You can think of SBT as a non-transferable personal NFT.

· The lack of identity in Web3 has led to many problems, including heavy reliance on Web2 infrastructure and the prevalence of cryptocurrency crimes.

SBT is powerful and can be used to reduce NFT forgery, enable credit lending, help DAOs mitigate Sybil attacks, and more.

· Ultimately, the SBT concept can make your passport, medical data or diploma an SBT.

Our Web3 Today

So far, our current Web3 It can be said that the greatest achievement achieved by the company is to realize the real ownership of digital assets and enable the circulation of these assets in the decentralized network. There is no doubt that this huge progress has improved the efficiency of many industries such as finance, commerce, and entertainment.

However, it has to be said that since the current Web3 applications are mainly developed around the financial aspects, such Web3 will inevitably give people the impression of being motivated by interests. But this is not what V God, the creator of the Ethereum blockchain, envisioned, ideally, what a decentralized society (DeSoc) should look like.

Recently, V God and several experts jointly published a paper entitled "Decentralized Society: Searching for the Soul of Web3", which introduced the How can the transferred "Soul Binding" Token (SBT) represent qualifications, credentials, and credibility in the future. The creation of SBT will create a richer and more diverse ecosystem for the decentralized society. And these Tokens will be stored in people's "souls", and use specific mechanisms to build a trust network like the real economy.

Why is Web3 Identity so important?

In today's Web3 world, a user's identity is represented by a string of letters and numbers starting with 0x. That's right, it is our wallet address representation. The wallet is currently the only way to identify users, so the encrypted wealth inside becomes a status symbol. But does wealth really distinguish us as individuals from the unique attributes we possess? Undoubtedly, the answer is no.

Some might argue, aren't those NFTs in your wallet all different and unique? They can distinguish users from each other. Then the question arises again, is the image of NFT alone enough to portray a complete user portrait to represent our identity? Whether a user holds Bored Ape or CryptoPunk, it is almost impossible for outsiders to judge whether the holder really likes this NFT or is purely for resale. In other words, in the current Web3, everything is tradable. In today's decentralized world, there are no identities, only assets.

Furthermore, because we currently lack a solid Web3 social identity system, we still rely heavily on centralized Web2 structures to compensate. For example, most NFT artists rely on OpenSea to verify their identity to distribute artwork, which they promote on Twitter. Also, those DAOs trying to avoid sybil attacks often have to abandon the Token voting mechanism and use Web2 websites instead. In short, without a social identity system, it is too easy to fake and forge.

In the paper, the authors explain that SBT can represent promises, certificates, and affiliations, and is intended to form the basis of DeSoc's identity. Such tokens can serve as resumes and personal files, and deeply reflect social relationships. Additionally, SBT will be publicly viewable, non-transferable, but revocable by the issuer.

Some SBT use cases

The SBT described in the paper is actually similar to our real world The credit reporting system that has been used in the financial system is very similar, but SBT can provide a more comprehensive and multi-dimensional social scoring standard. Those accounts holding SBT will be "souls". Let's take a deeper look at the usage scenarios of SBT and how SBT works.

Let the art world keep the truth from the false

SBT aims to help NFT creators and artists Build a reputation in the group and make the artist's reputation verifiable. For example, artists can issue NFTs from their "souls" (or accounts). The more SBT an artist's account carries, the easier it is for collectors to identify that the account's owner is that artist. Since SBT is a Token obtained through various life experiences, the more SBT in an account, the more it can prove the authenticity of this person. So as mentioned earlier, SBT can be used as a social scoring system to verify reputation and trustworthiness.

Unsecured credit business through credit scoring system

Currently, the Web3 ecosystem cannot Support credit card business and unsecured loans, because there is no mechanism that can be used to measure the borrower's creditworthiness and ability to pay. So, how can SBT fill this obligation gap? SBT can endorse a person's credit status and record it permanently. In this way, the use of "soul" accounts can accumulate reputation and use it as a standard for issuing credit. Specifically, these tokens can endorse educational certificates, work history, contracts, and other documents that support personal credibility.

Making DAO Sybil-free

Decentralized Autonomous Organizations (DAOs ) proposes a bottom-up, democratic, and transparent approach to future corporate governance and operations. DAO brings like-minded people together through a common goal, and uses smart contracts to run voting, and then promotes community development in a bottom-up manner. However, DAOs are very vulnerable to Sybil attacks. Sybil attack means that in a community organization, a single user can own multiple wallets and hoard tokens to achieve 51% of the voting rights, and then manipulate decisions.

SBT can reduce the risk of Sybil attacks by distinguishing real users from potential bots. How to do it? SBT will utilize multiple dimensions of information, such as educational credentials, licenses or certifications, to form a comprehensive profile of Web3 users. In this category, if an account lacks a diverse real-life profile, we can immediately identify them as bots.

A decentralized society that can verify identity but protect privacy

According to the paper, the authors propose that the ultimate goal is to build a decentralized system based on accounts (souls) that hold publicly visible, non-transferable SBT .

In this decentralized society, most participants use SBT to embody a series of affiliations, memberships, certifications, work experience, and many Many intangible but vital details for us as living beings.

In addition, any account can publish or verify SBT with other accounts to reflect a certain social relationship. Behind these accounts can be individuals, companies, organizations or institutions. For example, the Ethereum Foundation might be an account that issues SBT to accounts that attend a developer conference to prove that the developer actually attended the conference. In doing so, participants can use these experiences to enrich their Web3 profiles.

To put it simply and crudely, this is to a large extent imitating the credit system of the physical world, reflecting the relationship between people in a decentralized way Relationship. We also mentioned earlier that SBTs can be public. But this does not mean that the account must be real-named, nor does it mean that "everyone has only one account". The account might be a persistent pseudonym, or even an artificial intelligence.

Conclusion

A society without identity can become a breeding ground for crime and misconduct , unfortunately this has happened frequently in the crypto world. Over the past few years, the industry has witnessed a spate of hacks and malicious scams. Failure to act is tantamount to encouraging these behaviours.

Imagine a world where everyone can give up their identity at any time and there is no trust. Obviously, this runs counter to the original intention of blockchain. The Web3 social identity system proposed by Vitalik aims to potentially solve the current credit problem in the Web3 world by incentivizing people to be responsible for their actions. Even better, the way SBT empowers users is different from the current "wealth label". In the Web3 world, people's reputation, reputation and many virtues that make us human should be our capital to show off, not just wealth.