🌀 Trend Alert: Soulbound Tokens (SBTs) — Identity in Web3

What is it?

Soulbound Tokens (SBTs) are non-transferable NFTs that represent elements of your digital identity — like education, reputation, achievements, and affiliations. Unlike typical NFTs, SBTs cannot be sold or traded, making them ideal for building trust and social capital in decentralized ecosystems.

Why it’s gaining traction:

✅ Introduced by Vitalik Buterin to solve trust issues in DeFi and DAOs
✅ Powering Web3 reputation systems, proof-of-personhood, and Sybil resistance
✅ Emerging use cases in decentralized identity, credentials, and even dating
✅ Projects like Masa, Ethereum Attestation Service, and Sismo are leading

Risks:

❌ Privacy concerns — tying real-world data to on-chain identity
❌ Lack of standards and interoperability
❌ Still early stage — limited adoption outside experiments and grants

Conclusion:

SBTs could redefine how we prove trust, credentials, and uniqueness online. While still experimental, this trend shows how Web3 is evolving beyond finance into identity, reputation, and real-world connection.