What is a Soulbound NFT and forecasts 2023-2024

‘Soulbound’ NFTs have attracted attention recently, with Ethereum founder Vitalik Buterin being a major supporter. The concept of an NFT linked to the soul derives from the online multiplayer game World of Warcraft. In the game, users are able to obtain high-level weapons and accessories that cannot be exchanged or exchanged but are instead tied to the user’s account, so they are ‘animated’

What is a Soulbound NFT and forecasts 2023-2024

The Soulbound token concept has been successfully implemented and applied in the Web3 environment, mainly for identification purposes. Once created or acquired, these tokens cannot be transferred and are held in wallets called Souls. Soulbound tokens represent permanent attributes or traits that define the “soul” of an account and demonstrate that the user has the right to own the token. These tokens can serve as a reference for medical records, education certificates, criminal records, or KYC records. To better organize their tokens, users can separate them into separate souls depending on the function, such as having a soul for medical records and another for the exchange of information and KYC

Soulbound tokens represent an emerging implementation in the field of blockchains, which has the potential to address issues related to compliance and regulation, allowing greater control to users and greater transaction security. The Binance Account Bound (BAB) token is an example of a Soulbound Non-Fungible Token (NFT) that has already been used to verify the identity of Binance users who have completed KYC. The possibility of using these tokens also for other projects and eliminating the risk of Sybil attacks through the verification of unique users, represents an innovative solution to the problem of security. However, important technical and standardizing adjustments are still necessary to ensure the privacy and security of user data, avoiding possible risks of censorship or control by centralized entities. Precisely for this reason, a work of standardizing the privacy and wallet aspects is needed, as well as the definition of clear rules for guardians who operate in the event of the loss of Soulbound tokens. Only through adequate research and development, will it be possible to guarantee a mainstream use of these soul-related tokens, bringing manageable identity and data privacy to the blockchain

2023-2024 forecasts

The Soulbound NFT market is growing fast and many people are interested in understanding what their value will be in the future. Some economic forecasts indicate that the price of Soulbound NFTs could increase significantly by 2023-2024. In fact, it is expected that in the next two years, these types of digital tokens will be increasingly used in the world of art and collection, but also in other areas, such as gaming or merchandise exchanges. The expectation is that demand for Soulbound NFTs will continue to grow, causing prices to rise. However, economic forecasts cannot be taken as certainty, since the NFT market is in any case a place of great volatility. Those who decide to invest in this type of digital token should therefore carefully consider the risks and opportunities that they entail

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