By creating an alternative financial system with extraordinary flexibility and innovation in less than ten years, Web3 has astounded the globe. Economic and cryptographic primitives such as smart contracts and consensus mechanisms have helped to create an open-source system to conduct and authorize financial transactions.
However, the decentralized finance (DeFi) ecosystem cannot support straightforward contracts like an apartment lease because it lacks a native Web3 identity. This article aims to demonstrate how even modest advances toward social identity representation with soulbound tokens could circumvent these constraints and reroute Web3 to an authentic, more transformational path.
What are soulbound tokens (SBTs)?
Projects and use cases focusing on social identities and communities rather than just money are required for blockchains to be at the core of collaborative and fascinating ecosystems.