Building trust in the metaverse: how soulbound tokens could transform social interactions and online communities

The concept of Soulbound Tokens (SBTs) originates from the world of blockchain and decentralised finance (DeFi), inspired by the “soulbound” concept in video games, where certain items cannot be transferred between players. Proposed by Ethereum co-founder, Vitalik Buterin, SBTs are designed to be non-transferable digital assets that are permanently linked to a particular individual's digital identity or “soul”. However, unlike traditional fungible tokens or even non-fungible tokens (NFTs) that can be bought, sold or traded, SBTs are immovable; they are tied directly to a user and cannot be transferred to another person. This non-transferability introduces a new level of permanence and accountability, making SBTs ideal for representing an individual's credentials, achievements or reputation. In essence, SBTs serve as a form of digital identity verification, creating a foundation for establishing trust and accountability in the digital realm. And, as virtual worlds grow increasingly imm…