SoulBouned Tokens – Can it be the Bedrock for a Decentralized Society?

SoulBouned Tokens – Can it be the Bedrock for a Decentralized Society?

What are SoulBound Tokens (SBTs)?

 

In recent times, Non-Fungible Tokens (NFTs) seem to have captured the cultural zeitgeist. Interest in the concept has skyrocketed, evidenced by the public coverage about it, as well as a huge explosion in the volume of transactions of the same.

However, elements like NFTs and cryptocurrencies are ultimately part of a financial system — a Decentralized Financial System for sure, but still, a store of value, a medium of exchange, and consequently, a financial instrument.

Vitalik Buterin told Time in March 2022 that, ultimately, the goal of crypto is to accomplish meaningful change in the world. The world does not consist of just financial instruments and concepts. Even though they are critical to its functioning, it is not where the world ends and begins.

This is where Soul Bound Tokens (SBTs) come into the picture. The root of this concept is a paper authored by economist & social technologist E. Glen Weyl, lawyer Puja Ohlhaver, and Ethereum creator Vitalik Buterin that outlines his concept for a “DeSoc” — A Decentralized Society. Any societal framework in the field of anthropology has an element of individual expression. This is attributed in the form of relationships, affiliations, and credentials. In modern society, this is manifested in the forms of degrees, licenses, titles, and so on.

SBTs are NFTs that can not be transferred after they are received. The paper envisions that SBTs would be non-tradable tokens, awarded to a “Soul” unilaterally. The token would provide the said soul with an attribute. This is completely non-tradable and aims to act as an intrinsic “label”, instead of a token that aims to act as a financial instrument in any shape or form. Once you receive an SBT, you hold it in a Soul-wallet forever.

 

How will SBTs change the concept of our Identity and other aspects of our society?

 

As mentioned before, the underlying concept relies on “Souls”, which are entities to which SBTs are accrued. The ideal scenario is that the SBTs accrued by a soul manifest qualifications, connections, and memberships.

For example, SBTs could be issued for attending a developer conference, or any other group activity. In a theoretical sense, an SBT could exist for a family name, with membership implying being a part of an actual family.

SBTs have the potential to act as very efficient social or commercial credit systems, with SBTs displaying educational credentials such as degrees, work history, and rental contracts.

The core distribution of NFTs is random at best, being algorithmically airdropped into wallets. However, in the case of SBTs, “Souldrops” is envisioned as a way to create a genuine sense of community and form meaningful groups. While an NFT Drop may be executed mathematically, SBTs enable an entity like, say, a DAO, to drop tokens to Souls that may hold a certain intersection of SBTs. As Vitalik states in his paper, “a non-profit whose mission is to plant trees would drop governance tokens to Souls who hold a mix of environmental action SBTs, gardening SBTs, and carbon sequestration tokens.”

The end goal of these concepts is to create a Decentralised society where Souls and the communities formed at the intersection of all the Souls based on their SBT holdings can create “plural network groups”.

The concept of “plural network groups”, as stated in the paper, envisions that networks, i.e., interactions and communication, are the most critical aspects of economic growth. Trade-in Goods and services will occur through communications. A theoretical severing of the lines of communication across the world would instantly stifle all world trade, and create chaos in society. This problem becomes even more likely when these channels are highly centralized and exist in an oligopoly-like market structure.

“Imagine a world where most participants have Souls [digital wallets] that store SBTs corresponding to a series of affiliations, memberships, and credentials,” the paper mentions.

 

Some of the use cases for SBTs include:

 

  • By connecting Soulbound tokens to their NFT collections, artists may rid the NFT industry of unscrupulous actors that sell arbitrary NFT collections in the name of great artists. Artists may also, thus, testify to any scarcity constraints that they intend to impose. SBTs may thus assist NFT artists in establishing their reputations within the digital art communities.
  • Soulbound tokens may be used to purchase event tickets. After all, event tickets are often non-transferable, making it an ideal use case for SBTs. SBTs might be utilized in conjunction with events to generate special airdrops, which Buterin refers to as ‘Souldrops.’
  • SBTs may also serve as a representation of our credit reports. This provides lenders with a complete credit profile of a borrower. Even the loan itself might be accompanied by a revocable but non-transferable SBT. When the loan is paid off, the SBT may be destroyed or replaced with evidence of payment. As a result, individuals would be less likely to conceal their ongoing debts.
  • SBTs can have a significant impact on the future of documentation and certification. Because a Soul can create a limitless number of Soulbound tokens, it has the ability to transform documentation from paper to paperless by introducing it to the digital network. SBTs may, thus, find utility among educational institutions in offering degree certificates. It can act as a repository of one’s credentials. Once added to your Soul, SBTs may also reflect your skill set and abilities. Soulbound tokens may be used to represent a wide range of personal information, including academic degrees, personal data, and even professional certifications and job experience. As a result, SBTs may one day emerge as a CV for Web3 users.

 

What could be DeSoc’s end game and how is it building on the existing Decentralized financial and information exchange infrastructure?

 

Vitalik has stated in recent media interactions that he is highly concerned about increasing inequality and the overarching image of crypto assets as an engine for pure profits. He is not entirely wrong.

DeFi assets are overwhelmingly turning into gambits for acquiring “private property” aka aforementioned assets, and instantly tapping into markets with the sole goal of generating quick wealth. Similar examples of rent extraction exist in the contemporary real estate market, where quick gambits from entities with high amounts of the capital corner the market, create overwhelming, unilateral spheres of influence, and drive out a majority of rent-seekers.

However, DeSoc is aiming to enable efficient governance and decision-making mechanisms by creating a framework to enable trust and cooperation. Critics point out that such “credit systems” may theoretically result in dystopian ecosystems like China’s social credit system, where certain social groups are automatically filtered out due to the presence of certain SBTs.

While the overarching technology and concept are likely not ready for a large-scale undertaking of planning and implementation in modern contemporary society, the concept and its anthropological implications have a huge potential in the digital communities of today to foster trust, keep bad elements out, and, as Vitalik says, create “plural network goods”.

UBITQUITY has open-sourced unanimity!

UBITQUITY has open-sourced unanimity!

“What is unanimity?”

unanimity (version 1.2) is our open-source (MIT License) Blockchain-as-a-Service platform oracle that helps you integrate blockchain capabilities into your applications without expensive infrastructure or cryptocurrency handling.

– Blockchain Agnostic

– Peer-to-Peer Storage Capable

– Smart Contract Capability

– RESTful API Enabled

– Module Add-Ons Included

UBITQUITY LAUNCHING CRYPTO LISTING SERVICE TO EMPOWER HOME AND LAND OWNERS ACCEPTING CRYPTOCURRENCY TRANSACTIONS ON ITS PLATFORM

UBITQUITY LAUNCHING CRYPTO LISTING SERVICE TO EMPOWER HOME AND LAND OWNERS ACCEPTING CRYPTOCURRENCY TRANSACTIONS ON ITS PLATFORM

Ubitquity, the innovative leader in the blockchain, title, and real estate space has announced that it is launching its Crypto Listing Service™ with existing partners in July of 2022.

Wilmington, Delaware, USA — June 17, 2022 — Ubitquity LLC, the leading enterprise blockchain-secured platform for real estate and title recordkeeping, is excited to announce that is launching a Crypto Listing Service™ as part of a UbitquityPay™ value add-on for home sellers who want to advertise their properties or land to the global cryptocurrency community.

“The Crypto Listing Service™ will provide a new property listing and search experience while adding an advanced tool for collaboration between homeowners, title companies, and REALTORS® who are working to serve the ever demanding needs of their clients. With the major volatility of cryptocurrencies as of late, people want to put their cryptocurrency into more stable assets like property, so the timing of this product launch couldn’t be better,” said Nathan Wosnack, Founder & CEO of Ubitquity.

UbitquityPay’s Crypto Listing Service™ intends to be a definitive source for the most up-to-date listing information for both buyers and sellers who intend to transact in cryptocurrencies. The Crypto Listing Service™ gives both parties the ability to accept and pay with over 130+ supported cryptocurrencies on the UbitquityPay™ platform, while offering best-in-class security, and automated KYC/AML (Know-Your-Customer, Anti-Money Laundering) solutions to ensure regulatory compliance.

“We are working diligently to provide pertinent, accurate, and extensive information to ensure the Crypto Listing Service™ add-on to UbitquityPay™ exceeds the expectations of our valued global customers when we launch in July of this year. We are also excited to announce that we already have land in the Dominican Republic ready to list with one of our affiliates and their corporate partner,” added Wosnack.

The Crypto Listing Service™ will provide a collaborative environment with the responsive mobile features and comprehensive property insights homebuyers need to make timely, informed decisions when transacting in both cryptocurrency or a hybrid of their local currency (fiat). UbitquityPay’s whitelabel payment processing partnerships also ensure that their rates, often 1% or less with revenue sharing, are the most competitive in the industry.

The addition of Guaranteed Crypto Price Settlements (no stablecoin required), Merchant Integration, a live demo, new features such as 24/7/365 support, Service Level Agreement (SLA), and white glove handling of title policies and other relevant paperwork for the transaction are industry requirements that UbitquityPay™ supports.

UbitquityPay™ helps to remove the friction (i.e. 72 hour+ delays associated with Good Funds Law, fraud mitigation, intermediary costs, etc.) between title/escrow firms, insurance underwriters, and homeowners. Ubitquity works with title companies to ensure the transaction is both legal and valid. Once the transaction is complete, the cryptocurrency is stored with multiple signature wallets. The UbitquityPay™ platform instantly converts the cryptocurrency amount into fiat currency.

About Ubitquity, LLC

UBITQUITY, the leading blockchain-secured platform for real estate and title recordkeeping, offers a simple user experience for securely recording and tracking property deeds and land records. The company is partnered with academia, aviation companies, municipalities, and real estate companies. Learn about UbitquityPay™, Crypto Listing Service™, and its Affiliate Program by visiting www.ubitquitypay.com.

Ubitquity Contact:

Tatjana O’Brien, Sr. VP of Product Solutions

email: tati@ubitquity.io

tel: +1 (724) BITCØIN [248–2046]

Standards for Blockchain-Based Financial Solutions

Standards for Blockchain-Based Financial Solutions

The GBA has published the Blockchain Maturity Model that details the generic requirements for a blockchain solution to be trusted by and acquired by enterprise and government entities. However, the GBA Finacial Services Working Group is developing a set of requirements and expectations for banking and financial services solutions.

These blockchain standards apply to solutions that support one or more of the following sectors:

  • Broker Trading/Financing
  • Capital Markets
  • CBDC’s
  • Central Banks and National Banks
  • Credit Cards
  • Debit Cards
  • Exchange-Traded Derivatives
  • Governments
  • Institutional Banking
  • Institutional Investing
  • Local Economy
  • Managed Funds
  • Market making
  • Over-the-Counter (OTC) Derivatives
  • Retail Banking
  • Retail Investing
  • Structured Products
  • Supernational Bodies / NGOs

Take the opportunity to proactively define the standard rather than retroactively respond to it. To be part of this initiative, log into the GBA website and join the Banking & Finance Working Group.

Evolution of the Internet – from web1.0 to web3

Evolution of the Internet – from web1.0 to web3

The World Wide Web is the key tool used by billions of people to distribute information, read and create it, and connect with others over the internet. The web has evolved considerably over time, and its contemporary uses are almost unrecognizable from its inception. The development of the web is often classified into three stages: Web 1.0, Web 2.0, and Web 3.0.

 

web1.0, web2.0 and web3.0

 

What is Web 1.0?

 

Web 1.0 was the very first version of the internet. Consider the read-only or syntactic web to be Web 1.0. The majority of participants were content consumers, whereas the creators were mostly web developers who produced websites with predominantly textual or visual content. Web 1.0 existed approximately between 1991 and 2004.

In Web 1.0, sites supplied static content rather than dynamic hypertext mark-up language (HTML) content. The data and content came from a static file system rather than a database, and there was limited interactivity on the web pages.

 

What is Web 2.0?

 

Most of us have only seen the web in its present form, which is also known as Web 2.0, the interactive read-write web, and the social web. You don’t have to be a developer to participate in the Web 2.0 creation process. Many applications are built in such a manner that anybody can create content.

You may think and share your ideas with the rest of the world. In Web 2.0, you may also submit a video and make it accessible for millions of people to view, engage with, and comment on. Web 2.0 apps include YouTube, Facebook, Flickr, Instagram, Twitter, and other social media platforms.

Web technologies like HTML5, CSS3, and Javascript frameworks like ReactJs, AngularJs, VueJs, and others enable businesses to create new concepts that allow users to contribute more to the social web. As a consequence, since Web 2.0 is designed around people, developers just need to provide a system to empower and engage users.

Consider how popular applications like Instagram, Twitter, LinkedIn, and YouTube were in their early days compared to how they are now. All of these businesses generally go through the following steps:

  • The organization releases an app.
  • It tries to enroll as many individuals as possible.
  • The user generates content and engagement.
  • Then it profits from its user base.

When a developer or organization develops a successful app, the user experience is often exceedingly smooth, particularly as the program’s popularity rises. This is why they were able to get momentum so quickly in the first place. Many software companies were unconcerned about monetization at first. Instead, they were primarily concerned with acquiring and maintaining new customers, although they would ultimately start profiting.

However, the constraints of accepting venture capital often affect the life cycle and, ultimately, the user experience of many of the services we use today. When a company seeks venture money to build an application, for example, its investors often anticipate a return on investment in the tens or hundreds of times that they put in. This implies that, rather than following a long-term, organic development plan, the firm is typically driven down one of two paths: marketing or data sales.

More data implies more targeted marketing for several Web 2.0 businesses, including Google, Facebook, and Twitter. This leads to more clicks and, as a consequence, more ad revenue. The use and centralization of user data are critical to the operation of the web as we know and use it today. As a consequence, data breaches are fairly frequent in Web 2.0 apps. There are even websites devoted to monitoring data breaches like “have i been pwned?” and notifying you when your personal information has been compromised.

In Web 2.0, you have no control over your data or how it is kept. In reality, corporations regularly monitor and keep user data without their knowledge or consent. All of this data is then owned and managed by the companies in charge of these platforms. Furthermore, when governments feel someone is expressing a viewpoint that opposes their propaganda, servers are routinely taken down or bank accounts are seized. Using centralized servers, governments may easily intervene, control, or shut down programs.

Governments routinely meddle in banks since they are also computerized and centralized. They may, however, suspend bank accounts or limit access to money during times of extreme volatility, excessive inflation, or other political upheavals. Many of these issues will be addressed by Web 3.0, which seeks to fundamentally rethink how we build and interact with apps.

 

What is Web 3.0?

 

Web 3.0, also known as Semantic Web or read-write-execute, is the phase (starting in 2010) that suggests the future of the web. Artificial Intelligence (AI) and Machine Learning (ML) allow computers to evaluate data in the same manner that people do, allowing for the intelligent development and dissemination of useful information based on a user’s individual requirements.

Although there are several major differences between Web 2.0 and Web 3.0, decentralization is the defining parameter. Web 3.0 developers almost never design and deploy programmes that operate on a single server or store data in a single database (usually hosted on and managed by a single cloud provider).

Web 3.0 applications are based on blockchains, which are decentralized networks of many peer-to-peer nodes (servers), or a combination of the two. These applications are known as decentralized apps (DApps), and the term is often used in the Web 3.0 ecosystem. Participants in the network (developers) are rewarded for providing the best quality services in order to maintain a robust and secure decentralized network.

Many leading companies are presently conceptualizing and developing Web3, with Ethereum standing out in terms of early user acceptance and scope. While Web3’s underlying architecture has not yet been determined, its decentralized nature is a key component of its planned design. 

sign in options in web3

 

What is decentralization?

 

Web3 will allow decentralized access to linked data, in contrast to Web 2.0, which predominantly maintains data in centralized places. Web3 will allow individuals to engage with data in combination with AI and machine learning technologies, merging Tim Berner Lee’s idea of the Semantic Web. Web3 will essentially allow decentralized applications to replace centralized social networks while enabling users to retain control of their data.

 

The Advantages of Decentralization

 

Web3 is envisioned as returning data ownership to end-users via decentralization. The ambition of Web3 is to construct new web protocols and infrastructure that should enable developers to build applications where users bring their own data and identity is no longer bound to any one platform.

A decentralized web is based on a peer-to-peer network that is built on a user community. Instead of a group of powerful servers, this group’s own internet-connected nodes would host websites or apps. Each website or programme is dispersed among hundreds of nodes on various devices. This procedure decreases the likelihood of a server breakdown, hackers shutting down a website, or an oppressive government seizing and/or restricting viewpoints. The decentralized web is related to the dark web, which was designed by the US government to enable individuals and journalists under repressive regimes to express themselves freely, safeguard whistleblowers, and keep users safe by maintaining their identities. The anonymity and decentralized structure of the black web also allows criminals to operate freely, which is a possibility for Web3.

The Internet Archive, as one of the world’s greatest nonprofit libraries of information and culture, including free books, music, movies, software, and websites, has been critical in ensuring that the internet stays free and open. As such, it has been one of the primary organizers of DWeb events since 2014, bringing together groups of individuals who are laying the groundwork for a decentralized web.

 

How Is the Decentralized Web Used Today?

 

Although the notion of a decentralized web has been explored for many years, the majority of the web remains centralized in reality. The Ethereum network is now the biggest community-run decentralized network, powering the cryptocurrency ether (ETH) and providing access to hundreds of decentralized apps. Decentralized applications, or Dapps, are accessible for banking, arts, collectibles (including the notorious NFTs), gaming, and technology.

  • Blockchain protocols power the decentralized networks that enable smart contracts and trustless transactions. There are EVM (Ethereum Virtual Machine) based protocols like EthereumPolygon, BNB Chain, Avalanche, Fantom, etc. And there are substrate-based protocols like AXIA, Polkadot, Astar Network, etc. And lastly, there are other protocols like Solana, Cosmos, Phaeton
  • Financial Dapps are programmes that concentrate on developing cryptocurrency services to cover services for payments, insurance, lending, trading, borrowing, investments, etc. Examples – Aave Protocol, Uniswap, Compound, Nexus Mutual, dYdX   
  • Digital ownership is emphasized in arts and collectibles Dapps via Non Fungible Tokens (NFTs), enhancing the revenue potential for content creators. These applications include art and fashion, as well as digital collectibles and music. Examples – OpenSea, Rarible, Unicus
  • Gaming Dapps are concerned with the development of virtual environments for gaming and engaging with other users. The key distinction here is that these Dapps make use of collectibles with real-world value. Examples – Axie Infinity, Sandbox, Gods Unchained  
  • Dapps in technology focus on decentralizing developer tools, embedding crypto-economic systems into current technology, and developing markets for open-source development work. Examples – ChainLink,  The Graph, Alchemy

 

The architecture of Web3 apps

 

Web 3.0 apps (or “DApps”) have an entirely different architecture from Web 2.0 applications.

Consider WordPress, a blogging platform that allows users to post their own content and engage with that others. It may seem easy as a web 2.0 application, but there is a lot that goes into such a platform’s design to make it all possible:

First, critical data such as users, posts, tags, comments, likes, and so on must be stored somewhere. This necessitates a database that is regularly updated.

Second, WordPress’s business logic must be defined in backend code (written in a language such as Node.js, Java, or Python). For instance, what happens when a new user registers, creates a new blog, or comments on someone else’s blog?

Third, WordPress’s UI logic must be defined in frontend code (usually written in JavaScript, HTML, and CSS). What does the site look like and what happens when a user interacts with each piece on the page?

To summarise, when you publish a blog post on WordPress, you connect with its frontend, which communicates with its backend, which communicates with its database. This code is all housed on centralized servers and sent to consumers through an internet browser. This is an excellent high-level overview of how most Web 2.0 apps function now.

In contrast to Web 2.0 apps such as Medium, Web 3.0 removes the middleman. There is no centralized database to hold the application state, and no centralized webserver to house backend logic.

Instead, you may use blockchain to develop applications on a decentralized state system maintained by anonymous internet nodes.  Blockchains are state machines that are created with a genesis state and have extremely rigorous rules (i.e., consensus) governing how that state may shift.

Even better, no one entity controls this decentralized state machine; it is maintained cooperatively by everyone in the network.

What about a backup server? Instead of controlling the backend of WordPress, Web 3.0 allows you to develop smart contracts that specify the logic of your apps and deploy them into the decentralized state machine. This implies that everyone who wants to create a blockchain application must deploy their code on this common state machine. The front end, mostly, remains the same. Let us try to dive deeper into the components of a decentralized app:

 

1) Blockchain Protocol

 

The Ethereum blockchain is often referred to as a “global computer.” This is due to the fact that it is a globally accessible, deterministic state machine that is maintained by a peer-to-peer network of nodes. The rules of consensus that the peers in the network obey control state changes on this state machine.

In other words, it’s meant to be a state machine that everyone on the planet can access and write to. As a consequence, this computer is owned jointly by everyone in the network rather than by any one corporation.

Another thing to keep in mind is that data can only be written to the Ethereum blockchain – it can never be updated.

 

2) Smart contracts

 

A smart contract is software that runs on the Ethereum blockchain and specifies the reasoning behind the network’s state changes. Smart contracts are created in high-level programming languages like Solidity or Vyper.

Because smart contract code is kept on the Ethereum blockchain, everyone on the network may view the application logic of all smart contracts.

 

3) Ethereum Virtual Machine (EVM)

 

The Ethereum Virtual Machine follows, which executes the logic expressed in smart contracts and handles state changes that occur on this globally accessible state machine.

The EVM does not comprehend high-level languages used to build smart contracts, such as Solidity and Vyper. Instead, the high-level language must be compiled into bytecode, which the EVM may then execute.

 

4) Front-end

 

Finally, there is the front end. It defines the UI logic, as previously stated, but it also interacts with the application logic described in smart contracts.

 

Web3 is the Future

 

Web3’s future seems to be bright. There are several intriguing initiatives and innovations ongoing that will make this technology more user-friendly and accessible to everyone. We should expect to see a lot more innovation in this area over the next five years, revolutionizing how we use the internet. With further advancements in blockchain technology, we may soon see Web3 utilized for everything from online commerce to voting and governance. Polygon hosts some of the biggest Web3 platforms and developers in the industry, from decentralized finance (DeFi) protocols such as lending platform Aave to luxury brands company Dolce & Gabbana, and even NFT marketplaces including OpenSea and Mark Cuban’s Lazy.com.