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The Present and Future of Soulbound Tokens
Summarized by AI
Original title: "ArkStream Capital: A full analysis of the status quo and future direction of soul-bound tokens"
Original author: Larissa
Original source: ArkStream Capital public account
TL; DR
1. SBT is a relational proof rather than an authoritative proof. The value lies in the accumulation of a large amount of data. Complexity, richness and diversity will be the core competitiveness of SBT data sources.
2. The accumulation of data will give each account a "soul". By preprocessing and classifying the information, labeling and personalizing the account can be extremely It greatly enriches the application scenarios of identity on the chain, and even predicts its behavior.
3. Privacy is a luxury, and editable privacy is a track with great demand but full of challenges.
4. The formation of a decentralized society requires strong binding between natural persons and identities on the chain, which increases the replacement cost of identities and creates identity dependence.
5. SBT can be applied to decentralized financial scenarios such as lending by building credit points and hierarchical KYC on the chain.
Figure 1 SBT related track comparison table
Decentralized society and soul-bound Token
Vitalik once again mentioned POAP and the possibility of the future at the 2022 ETHCC, he said " POAP will be a way to distinguish real users from bot in web 3.0". This is not the first time that Vitalik has mentioned the POAP project. This earliest badge certification project has gained Vitalik's attention since its launch. Large-scale activities will choose to join the concept of participate to mint. "Distinguish between real people and machines" means that the identity and data of Web3 are no longer limited to the illusory world on the Internet, but break the boundary between virtual and reality, endowed with "personality" and begin to compare with reality. In the Web2 Internet world established over the past few decades, characters are virtual, images are fictitious, souls are separated from characters and images, and reality and virtuality are completely separated. In the construction of Web3, the characters are real, the image is multi-faceted, and the soul is bound to the real characters. Reality can be virtual, and virtual can be real.
Figure 2 The number of wallets with POAP and the number of mint
The interpretation of the concept of "soul binding" in Web3 comes from Vitalik's description in the article "Decentralized Society: Finding Web3's Soul", and the name comes from World of Warcraft. The article describes a Web3 society in detail. Compared with its description, our current market is like a train. It is not so Web3, at best it is Web2.5, from the regulation of Tornado Cash to the DAO voting liquidation of whales. We have deviated from the original goal of the blockchain. This train is loaded with DeFi, GameFi, NFT and the concept of the return of various ownerships. The high degree of financialization and strong wealth creation effect attracts countless people who chase the train. In the long run, we may experience endless hacker attacks, witch attacks and Under the temptation of money, they gradually lost their faith in the industry and became blindly chasing profits. Especially in a crypto world where asset mobility is strong and punishment methods are lacking, chasing more benefits may become the only pursuit of Web3 residents. Pure financialization will not be conducive to the sustainable development of the entire industry. What's worse, new technologies will cause wealth to be reshuffled again. That is, after the industrial revolution, a centralized system wrapped in decentralized sugar will appear.
Vitalik chose to pave a new track for this car and add a Soul Bond Token (SBT) solution to guide the direction of the entire Web3 , from Web2.5 to a real Decentralzied Society, DeSoc, a decentralized society. A truly decentralized society, DeSoc, has strong social composability. The social construction model is no longer a top-down model that is uniformly deployed by the centralized government, but chooses to return ownership and take the individual as the basis. The center spreads out to form a bottom-up people-oriented social system. In this social system, wealth is no longer concentrated, personal ownership is recognized and respected, and identity verification is no longer a birth certificate in black and white, but a network of relationships composed of events and related parties.
Figure 3 top-down and bottom-up Social system
Vitalik believes that to realize such a society, a publicly visible, non-transferable and wallet-bound Token——soul-bound Token SBT is an essential link, it will give each account "humanity", so that a decentralized identity will become more and more abundant. SBT is similar to POAP's badge concept mentioned earlier, but with the added non-transferable feature. It is a proof of relationship rather than a proof of authority. Let's use an example to illustrate what "relationship proof" is: Alice participated in Bob's birthday party and got a SBT. This SBT can only be used as a proof of Alice's participation, but not to prove that Alice is Bob's friend. Their relationship can be positive or negative, close or distant. As Alice continues to participate in activities where Bob appears, a large amount of data accumulation can conclude that they are friends or even lovers. Now, if we replace Alice with an account, and Bob with DeFi and GameFi, we can find out whether the identity behind a certain account is a game expert or a senior leek.
In the real world, a large number of behaviors constitute word-of-mouth, and word-of-mouth will generate original trust. This kind of trust is what SBT wants to quantify and realize through technical means things. The non-transferable feature endows SBT with certain credibility, and with the passage of time and the accumulation of a large number of SBT, it can gradually develop into the credibility of the account, thus endowing the account with certain characteristics. This feature is accumulated through non-transferable behavior tokens in Web3. The solution proposed by SBT is to issue SBT as a proof of participation for every activity, whether online or offline. In the long run, combined with transactions and interactions on the chain, each account can be bound to a growing person. Not just a wallet. Perhaps, a single event and proof is easy to be forged, but as time accumulates, the more complex the features are, the harder it is to replicate. A large number of features with credibility are enough to constitute a "person" with high authenticity. In the current Web3 society, there are no two most important concepts in the social system of "relationship" and "trust". The emergence of SBT is enough to fill this part of the vacancy and endow the entire crypto industry with more possibilities.
SBT and related track analysis under the OSI model
OSI model is the most The common protocol model is also the basic step to support the intercommunication of various parts of the huge Internet. The OSI model corresponds to seven layers, namely application layer, presentation layer, session layer, transport layer, network layer, data link layer and physical layer. These corresponding layers can quickly and accurately transfer our information to any computer. If the user at the application end is regarded as one end, and the recipient at the other end is regarded as a virtual identity in the DeSoc society, in order to construct a decentralized identity with complex characteristics, referring to the framework of the OSI model, we try to create an identity from the underlying infrastructure to the application layer Divide the existing encryption industry:
Figure 4 Industry classification under the OSI model
How many steps does it take to put an elephant in the refrigerator? Just three steps. The first step is to open the refrigerator, the second step is to put the elephant in, and the third step is to close the refrigerator. From a user's point of view, it only takes three steps to apply SBT, which is quite simple. The first step is to use SBT-related applications, the second step is to mint SBT token, and the third step is to save it in your own wallet. These three simplest user behaviors contain the three most important steps of SBT: 1. Information collection and processing 2. Transmission and storage 3. Binding. Corresponding the previous seven levels of OSI to the three steps of users using SBT, and observing the existing industry ecology again, the following figure will be obtained:
Next, this article will divide the For the specific solutions covered, take the existing SBT-related projects as examples to analyze the entire encryption industry ecology, and raise some common issues in the industry to discuss the direction of future exploration.
Information collection and processing
Information collection and processing It covers two levels: the application layer collects information and sends it, and the presentation layer edits the information into a suitable form for transmission. These two levels are the most focused areas of SBT-related project development. The greatest value of SBT lies in the accumulation of a large amount of data, especially the data that cannot be quantified originally. These data will greatly improve the analysis of the behavior pattern of an account. Early SBT projects are bound to encounter strong obstacles, especially before data accumulation cannot be scaled. Only when a large amount of data can generate commercial value, will someone be willing to develop, use and pay for it. Let's take a closer look at the current market conditions
Figure 6 Information collection and processing
A. Application layer
At present, the development of the application side is mainly focused on two parts: proof of participation and based on specific usage The subdivision of the situation. Projects in this category aim to record relationships: some focus on the recording of individual actions, others on the recording of individuals and events. A lot of development is currently concentrated in this branch. The first category of common projects is to issue SBT to users based on the wallet's existing behavior and transactions.
POAP
Earliest badge program, Although it is not SBT, as an initial related project, it can support the project party to hold activities and use the POAP platform to sell its own NFT, which can be transferred.
Quest3
One is DeFi, DAO , and the GameFi platform provides a platform for various tasks, users can participate in the community and reward SBT by completing tasks.
Noox
Based on wallet address analysis and Set up corresponding SBT collection nodes. After achieving a certain achievement, such as using a certain DApp for a certain number of times, you can receive a SBT on the platform.
Project Galaxy
Aims to build a The data certificate network issues on-chain certificates to users' on-chain and off-chain behaviors, helping developers use data certificates to calculate user credit points, find target audiences, and reward community contributors.
The second category is projects developed based on specific usage scenarios, such as DeQuest and CarvIO. At present, these scenarios are mostly concentrated in GameFi or DeFi, such subdivided tracks with a large user base.
DeQuest
By learning about Crypto and The knowledge of the game can be obtained by SBT, and the game data can also prove one's game level, and finally relevant data can become the basis for participating in the white list.
Carv IO
Using wallet data as The foundation forms a reputation. Now it supports viewing the status of multiple chain games, and after completing certain tasks, badges in the form of SBT will be issued. For game guilds, scholars can be selected and trained based on platform user data.
From the above projects, it can be seen that the current data collection form on the application side is very single. The starting point of many projects is to try to analyze the existing user behavior, lack Multi-dimensional data in some different scenarios, such as offline meetings, or data such as the duration of using the platform. We believe that complexity, richness and variety will be the core competencies of SBT data sources.
In addition, although data certificate projects such as POAP and Galaxy were born before the release of the SBT concept, most of their data certificates are tradable NFTs, but Its product form and final vision are similar to SBT, and the possibility of switching to SBT distribution in the later period cannot be ruled out to further enhance the network effect of users.
B. Presentation layer
The presentation layer is focused on the development of contracts and protocols superior. These protocols try to establish common rules for SBT, which can be applied to various DApp developments.
Marry3
Proposed Paired Soulbound Token The agreement can make the scene of marriage appear in Web3, and two accounts can be bound and can be divorced through multi-signature.
In addition to the SBT contract development based on specific projects, there are also a large number of contract projects on the market. EIP-4973 Account-bound Tokens, EIP-6114 Soulbound Nadges, ERC721S Soulbond. These are all contract types based on ERC-721, and as shown on the application side, they are basically contract types of identification class. Identification contracts can be used to issue participation certificates or graduation certificates, but for some that need to be accumulated by quantity and time, such as reputation, it is not supported. This is also the problem of SBT development in the application layer and presentation layer at present:
(1) For some dimensions that require time, contribution dimensions or Protocols that simply accumulate quantities are almost undeveloped. In fact, these data that rely on accumulation and time to bring quantitative and qualitative changes are the key to SBT.
(2) A large number of protocol developments use completely different contract formats, resulting in messy SBT data, and the collected data cannot be merged and accumulated. In the end, the data on the application side is scattered. In the long run, these scattered data cannot record and analyze the behavior of an account well.
(3) The existing scheme does not carry out detailed processing and subdivision of SBT data. SBT is a highly personal application mode, and a large amount of data will lead to the confusion of useful data and useless data. Just like red beans mixed with mung beans, it is difficult to screen them in batches. Because of the high degree of liberalization of information collection, most of the information formats are not only irregular, but also require manual sorting and filtering. Scrutinizing profitable data is also an integral part of SBT.
For these existing problems, we believe that SBT-related projects can make the following improvements in information collection and processing:
1. Enrich the product structure of the application side
The current application side products are basically Focus on issuing certificates to others to mark, and the data collected by a single mode is often single. Application-side products should support the collection of different categories and dimensions of information and collect relevant data in a targeted manner according to specific application scenarios. At present, new rules are being formulated for the DAO community's voting, airdrop, whitelist and other behaviors. This part of the development market has responded very quickly. I am very much looking forward to the emergence of new governance methods and participation statistics in the increasingly depressed DAO track. SBT can completely change the model of the DAO community and truly reward deep participants.
DAOU
DAOU uses Soulbound Token and Social Oracle to share the activity data of members in DAO (Discord activity and participation, forum Q&A, Github code contributions, DAO roles and connections) into on-chain verifiable data.
2. Enrich usage scenarios through account labeling and personalization
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Since SBT can build identity credit on the chain,then it is better to anthropomorphize the account, endow each account with personality characteristics through data accumulation and analysis, and then predict the identity in a specific environment based on the personality characteristics React. For example, if Bob's tag is Game Master, then in some games with a high degree of difficulty, it can be predicted by machine learning that Bob will have a high probability of buying and becoming a high-level player of this game. If a similar application is combined with lending, it is possible to predict within what amount a particular account will be repaid. The gameplay of this part needs to be explored, but tagged and personalized behavior can promote users to establish emotional links with accounts. Data analysis platforms such as Nansen already have labels for addresses such as Smart Money, and such labels can help build identities on the chain. Labels can also be linked to each other to accurately predict account behavior. For example, Bob is Game Master and Option Lover. From the simple account label, it can be analyzed through the behavior pattern that Bob’s behavior in the price range is the risk taker’s stop loss point in the corresponding game NFT. The behavior of a single account can be classified and analyzed and predicted according to the label. The personalization and tagging of accounts not only attracts users, but also simplifies the development of the application side. Not only that, because of the highly personalized attributes of SBT, it can customize precise push, precise marketing and personal product design for individuals.
3. Incorporate time into the direction of protocol layer development, and create a more unified protocol and developer tools
Current protocol development does not cover the variable of time. At the same time, the current protocol development is in a state of individual play, and there is no unified protocol. The next direction of exploration should be to create a protocol with strong universality and ease of use. At the same time, based on the protocol, more mature developer tools are also required. If a more unified protocol cannot emerge in the short term, then the protocol developed based on ERC-721 can consider corresponding data conversion and comparison. For example, there is a relatively uniform conversion standard between TOEFL and IELTS. Even if the pursuit of precision is lacking, user portrait analysis can be carried out within a general range.
4. Preprocessing and grading information
A large amount of information and irregular data format will make the entire SBT record processing extremely difficult. The reason why financial data is the easiest to develop is because the format is fixed. However, the data format of SBT is highly uncertain. There is no way to identify whether the data is useful in a large amount of data. A more unified screening rule can be formulated at the application layer to roughly divide the data according to the priority. Data with higher priority, such as transfers or data with a higher confidentiality level, is classified into one category. Make less important data such as attending an unimportant meeting a secondary priority. Divide some data that is not clear whether it is useful or not into undetermined. Data processing and transmission are carried out in a targeted manner according to the priority of the data. Rough classification and grading of front-end applications can greatly reduce the difficulty of data processing, and also allow developers to focus on security and privacy maintenance.
Transmission and storage
In the collection and processing of information, the application layer and presentation layer The function of multivariate data integration has been completed. Safe and efficient transmission is very important. The purpose of the session layer is to establish a secure channel to transmit data. The purpose of the transport layer is to split a large amount of data for flow control.
These two layers are the underlying facilities related to SBT. These are also highly concerned tracks in the industry. These tracks are not only closely related to SBT, but also the cornerstone of the entire Crypto industry.
Figure 7 Transmission and storage
C. Session layer
The keyword of the session layer is security. This security includes not only the security of the wallet, but also the security of privacy and the pursuit of decentralization. SBT can provide creative solutions to security.
Burn My Wallet
A Wallet Security flagging software that alerts other users and protocol hacked wallet addresses by minting SBT. These SBTs cannot be deleted and are bound to the account. Afterwards, as long as they access the API of the project party, they will receive a risk warning. Compared with existing centralized products that mark risk addresses, SBT's on-chain marking can help more people understand the security risks of wallets.
Such a creative and new gameplay idea will be a unique surprise brought to the market by SBT. Security programs currently on the market are all about telling the story of a stolen wallet locked or preventing it from being stolen. It is completely blank for the recovery of wallet property and the emergency measures for discovering stolen behavior. On-chain marking is a new gameplay brought by SBT. The exploration of this part may bring us a more complete security application software.
The technical characteristics of SBT make it difficult to achieve decentralization. Because the information and data of SBT are completely open source, even if the wallet is anonymous, as the binding of on-chain identity and off-chain identity becomes deeper and deeper, users' pursuit of security, decentralization and privacy will become stronger and stronger .
From the user's point of view, a series of pursuits such as privacy, security, and speed vary from person to person. These benefits should not be free, but should be categorized as services. Since everyone pursues different levels of privacy, security, and decentralization, these luxury goods should be clearly marked and classified. The degree of decentralization, level of openness and speed of each transmitted data comes from the price paid. Express delivery has special labels, fast labels, and the service should be fine. The pursuit of privacy should not be limited to encrypted transfers and identity hiding. At present, no matter whether it is a private public chain, a private transfer, or a highly decentralized or centralized public chain, there is no separate design for privacy. Editable privacy will be a new direction to pursue.
Privacy has three levels of classification: access, editing, cashflow, that is, whether data can be accessed, edited and used To make a profit, the three rights should be treated separately. The current privacy classification is simple and rough, either choose to hide completely, or choose open source hybrid, but the rough way cannot efficiently use the data generated by SBT. If privacy is carefully classified and modularized fees are charged based on different levels of development and maintenance, privacy projects will attract a lot of attention from the market. At present, the market's perception of privacy is still at the level of protection, but no one has focused on the profit of selling privacy and the fees for access. In the future, everyone's privacy and openness will be determined by themselves, priced by themselves, and maintained at their own expense. Consumption privacy will become the mainstream in the future. Only by endowing privacy with a certain degree of profitability can the public who don't pay much attention to privacy take up arms and defend privacy.
D. Transport layer
Existing transport layer The solution is how to process a large amount of data. The behavior of processing a large amount of data can be understood as whether it can be uploaded in large quantities, whether it supports data storage, whether it can identify the data on the chain and the data that needs to be stored. The solution at this level, put in the entire cryptocurrency industry, is the problem of expansion and decentralized storage that everyone is discussing. The problem corresponding to SBT is relatively simple but obvious: how to identify a large amount of redundant data and how to choose storage Way. These questions have no standard and are completely personal. Even though the data preprocessing mentioned above, in fact, the collected data of the fully spread application layer cannot be processed at the same time.
Storage is the biggest challenge facing the SBT track. How can so much data be stored so that it can be retrieved arbitrarily and not lost under the condition of ensuring authenticity? Decentralized storage requires a lot of manpower and material resources to maintain, and its efficiency is very slow, but centralized storage is not trusted by the market. Based on this situation, Farcaster adopted a semi-centralized storage solution - hybrid storage, which may be a compromised solution in the current situation. Since the information classification is mentioned above, is it possible to store the highest level of information on the chain, but save the remaining unimportant data off the chain, or entrust a unified storage service, similar to AWS. Perhaps combining the two, benchmarking the priority and the degree of decentralization with each other, and choosing the optimal solution in this is the effective way out.
The problem of transmission and storage is not only a problem faced by SBT, but also a common problem in the crypto industry. We believe that the following development directions can bring new thinking to Infrastructure while accelerating the development of SBT.
1. Rights customization and tiered fees
People with high needs for privacy, decentralization and security can choose to pay high maintenance fees. Those who are relatively weak in pursuit of privacy and decentralization will choose a rougher solution. By grading the rights and interests and charging fees, the income generated by this part can be used to reward maintenance personnel, so as to ensure the corresponding enthusiasm.
2. Editable Privacy
Even It is privacy, and a single pursuit cannot satisfy the increasingly complex user population. In the future, customization will be the most common feature. With the process of globalization, the integration of communities and the popularity of personalization will greatly affect our behavior patterns. Privacy will be the bellwether of the next era. Editable privacy will be another fusion of rights and technology.
3. Hybrid Storage
Inefficient Expensive decentralized storage will face great challenges, and the mature centralized model cannot be replaced in the short term. The confrontation between the two models will produce two situations: either decentralized storage can be efficient and store and transmit a large amount of data, or the entire industry chooses to compromise and choose hybrid storage until the singularity of technology appears.
Binding
Binding is SBT The point that is repeatedly questioned in all concepts. Most people think that even though SBT can record all behaviors and allow us to have a second identity on the chain as an individual, if the wallet account can be changed at will, it means that "binding" is useless. We believe that the formation of a decentralized society requires strong binding between natural persons and identities on the chain, resulting in "identity dependence".
Compared to reducing the cost of identity switching, increasing the cost is beneficial to the construction of Web3. If the cost of replacement is greater than the benefits after replacement, then most people will choose to maintain the current state, thus achieving binding. In addition, human nature is lazy, and long-term behavior habits will once again increase the cost of replacement. Correspondingly, the "cost" that can affect users has two parts: 1. Time and 2. Money. Increased replacement costs can constrain humanity in the absence of punitive means. SBT has its own time cost, which can force users to spend a lot of time on an account under the accumulation of a large number of long-term behaviors, and users will be rewarded for their long-term efforts. On the contrary, the cost of money will be greatly weakened because of the transferability of crypto assets, which is a problem that needs to be solved.
In addition, it should be noted that increasing the replacement cost of "identity" is beneficial to "binding", but it is by no means increasing the replacement cost of account address. The latter poses more serious problems. In the "binding" step, we will discuss the solutions in detail through the three levels of the network layer, data link layer and physical layer.
Figure 8 Binding
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E. Network layer and data link layer
The most important role of the network layer and data link layer in the Internet is Confirm the transmission address and receiving address. In Web2, the representative is the IP address. In Web3, the wallet public key and private key system can best reflect the binding and receiving address. The current market solutions focus on improving the ease of use of user portals. Irregular hash functions such as public keys and private keys greatly reduce the ease of use of wallets, just like complicated mailboxes and bank accounts that provide nickname functions. The domain name project headed by ENS tries to increase the ease of use of the wallet and reduce the difficulty of use. Increased ease of use will make wallet binding easier and easier to identify.
However, users can do nothing about wallet replacement and discarding caused by forgetting, theft, and other security risks. The loss and theft of the private key will cause the "identity" to be no longer trusted, so how to retrieve the wallet is particularly important. SBT enables true wallet recovery. If the authenticity of the relevant holder can be confirmed through SBT, then it is also possible to determine whether the person really exists through the contribution of an account in the community and the connection established with community members. Vitalik wrote in the Desoc article that if the user loses the private key, he can regain the ownership of the wallet through the community recovery method. The easiest example to understand is WeChat account recovery. Relatives and friends can help users retrieve their account by sending specific messages to WeChat. SBT will endow the encrypted world with the same relationship and authenticity. This direction of exploration can add new possibilities to existing wallet security.
A large number of wallet or user portal related projects focus on how to popularize wallets and increase the ease of use of wallets. For example, Metamask has gradually added NFT display from the initial token display, and embedded its own swap system.
Torus
Can help users generate And manage your own private key, and you can also authorize the account to others for joint management.
Wallet security and ease of use are a double-edged sword. Most users actively hold multiple wallets and change them at will. The most fundamental concept of binding is whether it is possible to bind a natural person with the identity on the chain represented by the wallet. In other words, there is a real person behind the behavior on the chain and this person does not generate a large number of wallets for profit. The two most common item categories are social graphs and DIDs. Social graph protocols led by Lens Protocol and Cyberconnect try to integrate all behaviors on the chain, and data can be shared in the same system, so as to achieve the unity of identity on the chain. Now many new social graph projects are trying to combine SBT and social graph.
Flamingle Labs
Flamingle Labs is based on A Web3 social product built for offline activities. Users can naturally socialize with Web3, thus building a distributed social account graph. The project hopes to solve the problems of too few valid Web3 social users, full of false accounts, and too flat user DID by transforming offline activities.
The track that keeps pace with the social graph is DID. DID can be said to be the most successful track bundled with SBT. DID projects either focus on discovering account attributes through the analysis of a single address, or associate off-chain data with on-chain.
DefNetwork
Def Network is a Collaborative tool for wallet address creation user tags. After downloading the plugin, Def Network can. Integrate and analyze the on-chain data of addresses, and generate labels. Developers and users can index specific tags and query addresses on Def Network.
IdentDeFi
Web3 identity information plugin, The user completes the identity authentication by connecting the wallet, linking the bank, and obtaining KYC authentication, thereby mint a non-tradable NFT. The project uses Zk-proof technology to ensure user privacy.
KNN3
KNN3 is based on a set of behaviors The analysis logic screens and classifies the behaviors on the chain, taking addresses as units, adding attributes to addresses through behavior analysis, or establishing relationships between two addresses, so as to understand the relationship between accounts and develop social graphs.
Whether it is a social graph or a DID, if it can be combined with SBT related technologies, it can do more with less. The existing methods of binding off-chain identities and on-chain identities are too rough, and most of them will choose methods with low security, such as uploading documents and binding bank cards for KYC. In fact, not all identity verification requires off-chain KYC to complete, and SBT combined with on-chain behavior data can replace part of the use of KYC. We believe that KYC can be used in stages, and some low-security behaviors, such as airdrops, can be verified by SBT to screen out deep participants. Some behaviors that require high security, such as lending, require identity verification and auxiliary verification of SBT data. The essence of lending is a trust mechanism, how the borrower can ensure that the lender can repay the money through the trust mechanism. In traditional society, the behavior of borrowing money is highly bound to social relations. A person's reputation, social status, and economic strength can most affect a person's ability to borrow money. The characteristic of SBT is to bring the relationship network into the chain. This relationship network has a cost. When the cost of giving up a wallet is greater than the amount of a small loan, this loan scenario that does not need to know the real identity of the other party is established. SBT can build credit points on the chain, and then determine the amount of unsecured loans for small loans at different levels. The longer the time, the more deeply involved in the community, and the accounts with complex relationship networks, the more unsecured or unsecured. Loans with low mortgage rates. Exploration in this direction can be dreamily linked with NFT, DeFi and other tracks.
F. Physical layer
The physical layer is special One level, in Web3, in addition to mining machines in various senses, it is difficult for us to find objects corresponding to "fiber optics and cables", but if you look closely, you will find that Web3 In Real Life is quietly spreading in corners we don't know.
NFTPlay
NFT frame as Cut in, create a DID exclusive NFT mobile display device, combine the DID identity corresponding to NFT with exclusive mobile hardware, and explore the interactive scene between digital identity and the real world.
From the NFT display display produced after a series of NFT products such as Artblock became popular to the Android smartphone of Solana Mobile Stack--Saga, they are all passing us a New information: The fibers of Web3 have sprouted, and products that meet various application scenarios have begun to appear. As proposed at the Hannover Messe in 2013, Industry 1.0 is the era of steam engines, Industry 2.0 is the era of electrification, Industry 3.0 is the era of information, and Industry 4.0 is the era of intelligence. A new industrial revolution that endows machines with intelligence, and loads invisible and intangible algorithms, computing power, and information flows into entities is taking place, and the barrier between reality and virtuality is at stake.
In the future, we may see some products that bind Web3 identities as application scenarios. bound. In addition to mobile phones, there may be new, unexpected items bound to people: chips, bracelets, and even crystal implants. These unimaginable products increase the cost of replacement, thus ensuring that the "soul" of the identity is deeply bound to it, making it difficult to replace.
In summary, in the "binding" step, it involves the network layer, data link layer and physical layer that are more closely connected to the physical world . When we expand SBT to the level of identity, wallets, social graphs, and physical devices are some directions that can be explored. We believe that only by increasing the cost of replacement, SBT can further deeply bind with people. Based on this idea, we have summarized some industry problems that can be improved through SBT:
1. Wallet recovery
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The high cost of replacement binds people more closely to their "identity", and with it comes the issue of wallet security. Through the social relationship established by SBT, the wallet can be retrieved or replaced under the condition of multi-person cross-validation.
2. Alternative off-chain KYC for credit lending
SBT, which combines the relationship on the chain, allows each "identity" to have a cost. When the loan amount is less than the cost, a loan model that does not need to verify the real identity of the other party is established. SBT can combine credit points on the chain to provide micro-loans in different gears, filling the gaps in those scenarios that require KYC identity information to be on-chain for lending.
3. Physical equipment and reality
In the future, we will see some physical devices that use Web3 identities as application scenarios, fully serving identities on the chain, so that the "soul" of identities is deeply bound to individuals.
The future direction of SBT
Compared to the bottom-up Web3 stack theory, We refer to the OSI model, start from the user's perspective, disassemble the user's behavior, divide the behavior of "soul binding" into three steps, and then discuss the industry problems and exploration directions involved in each step. Since Vitalik put forward the concept of SBT, Buidlers in the industry have explored in various directions. We use the topic of SBT to think about some existing problems in the decentralized society and Web3, and also make some suggestions for the future development direction of the industry. Forecast:
1. Agreement is king
2. Everything on the chain
will There are more and more offline behaviors and on-chain interactions that issue participation certificates in the form of SBT. These certificates do not need to be real or meaningful at the beginning, but only need to be enough. When the amount of data is large to a certain extent, an effective screening and classification mechanism can help to effectively establish identities on the chain
3. On-chain credit and DeFi Composability
Even though the original intention of Vitalik to propose the concept of SBT is to solve the problem of the current highly financialization of the Crypto industry, the generation of credit brings Future financial applications are indeed an area that is more easily accepted by the market. DeFi is currently still limited by over-collateralized lending. If credit lending can be fully introduced, new vitality may explode.
4. Re-empowerment of privacy editing
Privacy is always the most expensive luxury in the pockets of the rich. Even though zk-related technologies used for capacity expansion can often get higher market attention and valuation, privacy will become an obsession in the next digital days. off topic. Research on editable privacy related to SBT will empower existing privacy products, and privacy layering will make identity data the hard currency of Web3.
Figure 9 application, data, and soul bindingblockquote>
In addition, the way of thinking based on user behavior is not only suitable for SBT, all heavy application and user related tracks can be substituted into this model. The transmission and storage layer is like a huge water purifier. After the protocol is formatted, all the data collected by the application end enters this huge water purifier. Some content is stored on the chain, and some is passed through After the water purifier is carefully filtered and processed, these data are diverted to different pools under the different needs of all parties. There are extremely personal data and information of each person in the small pool. These information and data can pass through the middle filtering layer and be used by application developers for different purposes again. Closed loop, endless life. In the end, we will find that the common issues that cannot be separated from the entire industry are expansion, storage, security, privacy, and decentralization. Any major breakthrough in the bottom layer is enough to support the vigorous development of the application layer. The direction that practitioners are chasing day and night.
Reference:
[1] https://dune.com/dvd819/ poap-summary-dashboard
[2] https://zhuanlan.zhihu.com/p/347036222
[3] Decentralized Society: Finding Web3's Soul
https://papers.ssrn.com/sol3/papers.cfm?abstract_id =4105763
[4] https://mp.weixin.qq.com/s/fUxVx9HK8J44HOf6Y1yqKA
[5] Farcaster White Paper https://www.farcaster.xyz/docs/intro
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