Vitalik Buterin proposed a novel concept, “Soulbound NFTs”. The idea is to create an entire game economy where players are incentivized to buy and sell their digital assets with other people in the game. It’s unclear what impact this will have on gaming, but it could be just one more step towards a true online ecosystem of games.
Vitalik Buterin, the creator of Ethereum proposed “Soulbound” NFTs. These are non-fungible tokens that can be traded and transferred on their own without any third party involvement. These NFTs may have a lot of potential in the future.
Vitalik Buterin, the co-founder of Ethereum, recommended making NFTs’soulbound,’ similar to the namesake goods in World of Warcraft, in a statement pointing out the downsides of NFTs (WoW). The idea behind the plan comes from the blockchain pioneer’s worry of the illegitimacy that may occur if personal objects with tight requirements were ever placed on-chain.
Buterin’s soulbound artifacts serve two objectives. The first is that they indisputably reflect an accomplishment by the possessor, since they can only be won by completing a specific task, rather than via trade or heritage. The second reason for implementing the soulbound notion into the game is to prevent ‘twinking,’ which occurs when players trade things from high level to low level characters in order to substantially speed up the grinding process of battling monsters to obtain experience.
Buterin’s intuition behind his proposal relates more to the former, as the Canadian-Russian programmer expressed concern about the idea of storing driver’s licenses, university degrees, and other personal documents on-chain, as they could be purchased by blockchain users who don’t meet the necessary conditions.
Regardless of your feelings about Buterin’s idea, it would be naive to believe that reducing the asset’s transferability would not have a negative impact on its economic viability. While it may not be the healthiest use of the asset, the notion of ‘flipping’ NFTs, or buying and selling them for the sole goal of profit, seems to be one of the key reasons why many individuals get interested in the field. Consider what Gary Vee, the vocal NFT champion and entrepreneur, would think of such’soulbound’ NFTs to create a better image of such an argument.
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