According to Ethereum co-founder Vitalik Buterin and his cult-like supporters, Soulbound Tokens (SBTs) are the future. Buterin and his co-authors proposed SBTs in their white paper “Decentralized Society: Finding Web3’s Soul.” The purpose of SBTs is for a fully decentralized society (DeSoc) to use non-tradable identification and reputation tokens. Most people still believe that a DeSoc is a long way off, which leads them to believe that SBTs are as well.
In response to Buterin’s study, many individuals found problems into their own hands in order to make SBTs a reality. And now, one of these entities has moved past the “what if” of SBT by developing the Soulbound utility on the Ethereum network. Masa Finance has provided the Web3 economy with a standard on-chain Soulbound Token protocol with the launch of its mainnet on Ethereum.
What Masa says about the SBT
Theoretically, SBTs have a fair possibility of changing the world as we know it. That remains to be seen in the real world. Masa, which launched its mainnet on January 17, intends to change this perception. The business hopes that after the introduction, users will be able to mint a variety of Soulbound Tokens on its platform, such as Masa Soulbound Identity SBTs, Web3 credit reports, and unique.soul domain name NFTs.
It’s official, the Masa #Mainnet is live! 🚀— Masa (@getmasafi) January 17, 2023
Public access is now open 💎
All are welcome to #mint their Masa Soul Name #NFTs
Claim your rare 👻.soul names before they're taken!
Mint is live here: https://t.co/e0WCypZBrS pic.twitter.com/m6C6hAoTqR
Let’s take a closer look at this. To begin, when users log in to the Masa platform using MetaMask or other software wallets, they will be prompted to create a Masa Soulbound Identity Token. This is a non-transferable NFT that is linked to a user’s wallet and is said to demonstrate the uniqueness of a user’s Web3 identity. Essentially, it’s an SBT that can be created straight to an existing wallet rather than requiring a Soul Wallet, as Buterin’s paper initially indicated.
The following section discusses how these SBTs can be employed. Masa’s Soulbound Tokens are being examined for use cases such as proof of participation, Know Your Customer (KYC) verification (which was first seen on a large scale in the NFT sector with BAYC), and Masa’s long-awaited decentralized credit mechanism. This is when Web3 credit reports come in handy. Masa’s protocol revolutionizes traditional finance by merging a user’s Web2 and Web3 behavior and utilizing a reported 10,000 data points such as their FICO score, software wallet transaction history, crypto exchange balances, and more.
Masa Co-Founder Calanthis Mei discussed the use of Web3 credit reports and Masa’s collaboration with SBT in a press release. “Masa will assist billions of worldwide users in building their authentic identity on-chain and using their on-chain identity to unlock real-world usefulness,” he stated.
Masa has finally released a name service that functions similarly to the Ethereum Name Service NFTs. Masa users can create unique identifiers that, like a domain name, point back to the user’s software wallet using these.soul name NFTs. Unlike Masa’s Soulbound Identity Tokens or Web3 credit reports,.soul names will be able to be bought and sold on marketplaces such as OpenSea. Furthermore, trading away a.soul name has no effect on a user’s Masa SBTs.
The impact of Masa SBTs on the ecosystem
Masa also wants to give developers and project managers the tools they need to build on top of its protocol with the introduction of the mainnet by allowing them to use Masa as the infrastructure to easily create SBTs for a range of functions. Masa SBT is now built on Ethereum, but Masa intends to make its protocol available to individuals on other blockchains later in 2023.
Soulbound Masa Tokens are still in the early stages of their application, but they are ahead of their competition because they contribute to the discussion about the need for increased accountability in Web3. Masa aims to combine on-chain data with real-world data in order to provide Web3 with an easy-to-use and private means to manage and verify identity.
“My vision for Masa is to on-board the next billion users to Web3 by building Web3’s de-facto identity primitive. At Masa, we want to make identity as simple as minting an NFT — for a user — and as simple as deploying an ERC-20 smart contract for a developer,” explained Brendan Playford, Masa’s co-founder. “With our mainnet launch, each sovereign individual can create their unique Soulbound Identity. Establishing and building a decentralized identity that unleashes the full potential of the web3 economy.”