Soulbound Tokens (SBTs)
Web3 / nfts collectibles
Soulbound Tokens are non-transferable, non-tradeable NFTs proposed by Vitalik Buterin, E. Glen Weyl, and others as building blocks for decentralized identity, credentials, and reputation systems. Unlike standard NFTs, SBTs cannot be bought, sold, or transferred after issuance, making them ideal for representing achievements, certifications, employment history, or social credentials tied to a specific individual ("soul"). This non-transferability prevents fraud and makes SBTs suitable for verifying qualifications, educational degrees, and governance participation without requiring third-party trust. SBTs form the foundation for decentralized identity ecosystems where individuals aggregate cryptographic proof of their capabilities and affiliations. Example: A university issues SBTs as diploma credentials to graduates; these tokens live in a student's wallet as verifiable proof of degree completion, transferable only through governance upgrades, and usable to apply for jobs or access community DAOs requiring educational verification. Why it matters for NFTs and digital collectibles: SBTs redefine NFT utility beyond art and speculative assets, introducing utility-focused tokenization of identity and credentials. This expansion enables Web3 applications in reputation, hiring, education, and governance while establishing a new category of non-financial NFTs that accrue value through association and trust rather than scarcity.
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