What are Soulbound Tokens

Bryant Nielson | January 2, 2023

Soulbound Tokens empower individuals to own their data.

Soulbound tokens are digital assets that represent unique items or experiences. Unlike traditional cryptocurrencies that are freely exchanged for one another, soulbound tokens are unique and cannot be exchanged.   The first mention of soulbound tokens occurred in January 2022 when Vitalik Buterin suggests making NFT soulbound tokens like World of Warcraft items.  

Currently, NFTs are used is in the creation of collectible items, such as digital art or in-game items. These tokens can be bought, sold, and traded like physical collectibles, with the added benefit of being easily tradable online.  An emerging use case for NFTs is in creating “soulbound” items, which are tied to a specific individual and cannot be transferred to another person. These types of tokens represent ownership of data that only the individual (soul) can possess. 

One example of a soulbound token is the “Cryptovoxels Passport,” which grants the owner access to a virtual world and allows them to claim virtual land within it. The passport is linked to the owner’s Ethereum address and cannot be transferred to another individual, ensuring that only the rightful owner has access to the virtual land.

One way that Soulbound Tokens can be used in education is as a means of verifying and documenting learning. Traditional transcripts and certificates can be easily forged or lost, but NFTs provide a secure and verifiable way to document educational achievements. For example, a student could earn an NFT to represent their completion of a Web3 Foundations course or Certified Blockchain Project Manager program, which they could then share with potential employers or academic institutions as proof of their skills and knowledge.

Another potential use for NFTs in education is to monetize and reward educational content. Traditional models for education rely on tuition and donations, but NFTs provide a new way for educators to be compensated for their work. For example, an educator could create an NFT that represents access to a course or program, and students could purchase the token in order to participate. This model could make education more accessible and affordable for students, allowing educators to set their prices and potentially reach a wider audience.

In addition to providing a new way to document and monetize education, NFTs can also increase the value and perceived worth of educational content. Traditional educational materials, such as textbooks and online courses, can be easily copied and distributed, leading to a decrease in their value. NFTs, on the other hand, are unique and cannot be replicated, making them more valuable and desirable to potential students.

Overall, the use of soulbound tokens in education has the potential to transform the way that knowledge is shared and valued. By providing a secure and verifiable way to document learning, a new model for monetizing educational content, and increasing the value of educational materials, NFTs have the potential to revolutionize the education industry.  Learn more about soul tokens in the Blockchain Enterprise Strategy course.