Ethereum’s co-founder suggests to make NFTs Soulbound

NFTs are one of the most significant innovations in the cryptosphere which have proved their utility over the last year. The craze for these Non-Fungible Tokens is continuing to surge. Following the scenario, Vitalik Buterin, the co-founder of Ethereum suggested a new concept. Notably, the concept is related to the token’s governance and other spectrum of decentralized solutions. Hence, he argued that crypto collectibles should be made soulbound. The idea for such a concept came from the famous MMORPG World of Warcraft, which the Ethereum’s creator is a big fan of.

Comparison of NFTs with game items

NFTs are already being embraced in the gaming industry. These crypto collectibles have introduced new opportunities to make passive gains while playing games. Following the scenario, Buterin compared Non-Fungible Tokens with in-game items like in World of Warcraft.

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Both NFTs and in-game items possess specific rarities, social signaling value, and additional tools. It is notable that social signaling has become even more obvious after numerous social platforms introduced Non-Fungible Token profile pictures.

NFT acts as reflection of someone’s wealth

According to the Ethereum co-founder, digital collectibles act as a reflection of someone’s wealth rather than skill in acquiring specific tokens. Buterin also argued that most of the NFTs presented on the market can actually be used for a good cause. Such causes include collections that support charity once someone buys it from the secondary market.

On the other hand, Buterin also underscored that we should make these collectibles reflect not only someone’s wealth.

Proof of Attendance protocol

Following his ideas Buterin highlighted the Proof of Attendance Protocol (POAP). This protocol is the standard by which NFTs are distributed among users that have participated in some kind of event. This concept is mainly used to reflect actual participation in something in a similar way to how soulbound items work in games. Indeed, mentioned items cannot be traded.

The proposal and the concept both sound refreshing. However, it is yet to be clarified whether there is a difference between selling an NFT or private key to a wallet with Non-transferable tokens.