Riddhi D.
1:21 27th Feb, 2023

What Are Soul Bound Tokens? SBTs Explained

SBTs or Soulbound Tokens are a specific kind of cryptocurrency which are strongly linked to a particular object on the blockchain.

SBTs or Soulbound Tokens are a specific kind of cryptocurrency which are strongly linked to a particular individual or object on the blockchain. In this article we will dive deep into the the idea behind SBTs, potential uses of SBTs and their connection to Ethereum and Vitalik Buterin.

What are Soulbound Tokens?

Soulbound Tokens are a type of cryptocurrency which are strongly linked to a particular object on the blockchain. The reason they are known as "Soulbound" is because they're designed to be forever bound to their owner, just as a soul is bound to a body.

In other words, once a soulbound token is created, it is non transferable to another party. The only person able to utilize the SBT is its real owner.

SBTs are generated via smart contracts on the Ethereum blockchain. These smart contracts essentially govern the behaviour of an SBT, such as allowing the token to be used only for a short period of time.

Uses of Soulbound Tokens

Digital Art: Collectibles could be one use for SBTs in this field. Through soulbound tokens, artists can ensure that their work is not duplicated. The SBT can be linked to a specific piece which will ensure in maintaining the originality.

Gaming: SBTs can help game developers ensure that their products are not copied or exchanged on black markets. This can be done by creating Soulbound Tokens which are linked to in-game objects thus making the services offered totally transparent.

Proof of Identity: SBTs can be utilized as proof of verification for services or products. Through soulbound tokens companies can make sure that only specified users have access to an information by linking the token to those users.

Soul Bound Tokens Zelta

Soulbound Tokens And Ethereum

Since SBTs primarily exist on Ethereum blockchain they also come with numerous advantages:

  • The Ethereum blockchain is a reputable platform with a large community as well as a rich ecosystem of tools and resources.
  • Eth also enables the development and installation of SBTs easier compared to using a much less developed network.

Furthermore, owing to Ethereum's decentralisation SBTs aren't regulated by any centralized organization. This improves their resilience to restriction ensuring everyone gets fair access to them.

Also read: What is Ethereum 2.0?

Now, let's look at the history of SBTs:

Soulbound Tokens and Vitalik Buterin

Vitalik Buterin, the co-founder of Ethereum has presented an excellent argument for the use of blockchain technology concerning the creation of a more democratic and decentralized world.

Vitalik Buterin Wikipedia

The possibility of SBTs has been addressed by Buterin, stating that "Soulbound Tokens could potentially establish an entirely novel sort of digital ownership, wherein users retain full control of their resources and can guarantee that they're not replicated or pirated."


Soulbound tokens prove to be a legitimate solution for assuring the originality of digital assets. SBTs also provide more protection and integrity for the ownership and trading of rare in-game objects by users.

They also present fresh chances for game designers to make money off of their creations. In general, soulbound tokens are a promising sign for the future of digital asset ownership which also includes the world of online gaming.


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