“Soulbound” NFTs are special types of NFT that cannot be transferred or traded but are instead tied to the user’s account.
This concept has been adopted to Web3, mainly for identification purposes.
Soulbound tokens could represent medical records, education certificates, criminal records, or even know-your-client/customer (KYC) records.
Since different soulbound tokens each have unique functions, users can also separate their tokens among various Souls based on function.
These tokens can also be used for identity verification for other projects without undergoing the same KYC process again.
These soulbound NFTs could help regulate token sales, airdrops, voting on governance proposals, and more.
The concept of soulbound tokens is still a new one, and several issues need to be resolved before they will be ready for mainstream use.
Greater security must be a preeminent concern, as it will allow for greater trust and adoption of soulbound tokens, bringing manageable identity and data privacy to the blockchain.
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