In May 2022, Vitalik Buterin, the founder of Ethereum, published a paper titled "Decentralized Society: Finding Web3's Soul" ("Decentralized Society: Finding Web3's Soul"), which will soul-bound tokens (SoulBound Token, referred to as SBT) Pushed into the limelight, and quickly spread in the Web3.0 world.
After nearly a year, there have been many discussions and attempts in the industry on the concept and prospects of SBT. However, except for the POAP badge of the earliest SBT prototype Web3.0 and the BAB (Binance Account Boun) launched by the cryptocurrency exchange Binance, other projects did not stir up too much splash. When it comes to the application of SBT, the market is still deserted and very few.
Fortunately, the encryption market has never lacked warriors who eat crabs. After Binance, Huobi, another well-known cryptocurrency exchange, has made bold attempts and innovations in the SBT field. It has jointly launched the Dominica Metaverse Bound Token DMBT (DMBT for short) with TRON and DMC Labs. ).
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POAP badge, origin of SBT
The term Soulbound originally came from World of Warcraft. Items that are Soulbound in the game cannot be sold, mailed or given to others, and can only be used by the player themselves. As a veteran player of Warcraft, V God obviously got inspiration from the game, thus creating the concept of SBT.
To put it simply, SBT is a programmable, non-transferable but revocable and retrievable token with verifiable information, similar to an ever-expanding personal resume (including educational certificates, employment experience, proof of attendance, etc.) . Through the verification of the wallet associated with its social relationship, SBT can help users build a complete identity that is mapped to the real society in the Web3.0 world, and solve the user identity system problem that has hindered the development of the Web3.0 world for a long time. Therefore, SBT is considered to be an important driving force for the realization of Web3.0.
Although the term soul binding was only coined earlier last year, the Web3.0 Proof of Attendance Protocol POAP, which was born in 2019, is the earliest prototype of SBT and has been mentioned by V God many times.
POAP, short for Proof-Of-Attendance Protocol, is a mechanism for distributing cryptographic badges to record and commemorate the occurrence of specific events. POAP tokens serve as an easily verifiable proof that a user was present when an event occurred. Like people can believe you're a singer's number one fan just by knowing you're collecting concert tickets and attending multiple meet and greets. You can also represent your participation in many different activities by collecting badges.
According to Dune data, since October 2020, more than 6.4 million POAPs have been minted on the Gnosis chain (xDAI). Even in the bear market of the past few months, there is still a steady demand for minted POAP.
Buterin has stated that POAP can be used both as a component of a personal identification protocol and as a way to try to determine whether someone is a member of a certain community (valuable for governance or airdrops).
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DMBT, the trusted soul in Web3.0
Using SBT directly as the user's identity certificate is another form of SBT application. A credential is a high-level item that aggregates multiple certificates issued by itself. In this system, SBT realizes the function of decentralized identity DID.
Currently, the typical projects that use SBT as an identity certificate mainly include BAB launched by Binance, DMBT launched by Huobi and TRON, and Evolution jointly launched by the digital asset custody platform Cobo, MetaMask and Gnosis DAO.
Take DMBT as an example. DMBT is an on-chain identity that users choose to cast after Huobi KYC, which is used to prove that the holder is a verified Dominica Metaverse Digital Citizen (DMDC). As an SBT, DMBT is non-transferable, revocable, and unique.
It is reported that users who complete the Huobi KYC-L3 identity authentication can apply for the Dominica Metaverse digital identity DDID, and after becoming a DMDC, they can obtain the DMBT minting qualification and carry out on-chain minting. Users who hold DMBT can receive the physical certificate of Dominica Metaverse Digital Citizen ID Card DMIC (Dominica Metaverse Identification Card) after paying a certain cost.
epilogue
epilogue
From POAP badges to Huobi DMBT... the interpretation of various SBTs and the subsequent technical realizations have brought new infrastructure, technical standards, and application forms to the Web3.0 world.
At the same time, we can also clearly see that SBT is still in its early stages, with various projects trying different approaches. Although some projects have been developed, most projects are facing many challenges and technical problems such as insufficient demand.
However, as V God said: "Desoc (Decentralized Society, decentralized society) is not only worth the price we have to bear to meet these challenges, but may be the only way to ensure our survival." In a human observation than ever before In a more predictable era, we may eventually usher in a new world of Web3.0 based on SBT.
