The Prototype of Soulbound Token: DREP DID & DREP Credit Construct a Reputation Bounded Web3.0
Earlier this year, the term “Soulbound Tokens(SBT)” was initially coined by the Ethereum founder Vitalik Buterin. The seemingly complicated term may play a marvelous role in the near future. With a wide variety of use cases it possesses, SBT has the capability to propel blockchain and crypto to meet a new milestone in Web3.0.
In fact, what DREP is endeavoring parallels the notion of SBT. SBT is to provide an identity, which means the man behind the address is reliable. With DREP DID, one can not only be figured out what he did through accumulated historical data but also more surprises can be discovered.
The Current Web3.0 Environment
Contradictory to the Cognition of Decentralization
Web3.0 is aimed to achieve an antithesis against the centralized, or in other words, Web2.0 way of administration like Google, Facebook, or Twitter. However, most NFT artists rely on centralized platforms to initial provenance, and DAOs that try to move beyond simple coin voting often rely on Web2.0 infrastructure, such as media profiles, for Sybil resistance. In addition, many Web3.0 participants rely on custodial wallets managed by centralized entities like Coinbase or Binance.
Personal Profiles are Barely Trustworthy
The current Web3.0 ecosystem lacks primitives to represent social identity, and this lack of Web3.0 identity makes some economic activities invalid in DAOs.
People can not carry out undercollateralized lending with each other since there’s no reliable information to depend on. We do not know what is behind a hash code, so we feel unsafe, which becomes a huge flaw of the current industry. If a token can be issued to one’s identity and bound with the identity to prove its authenticity, the reputation of an address can be trusted and the whole environment can be enhanced to a new stage.
The Ability of SBT to Change the Situation
SBT operates along with the presumption uttered above. Souls are a natural way for artists to stake their reputation in their works. When issuing a tradeable NFT, an artist could issue the NFT from their Soul. The more SBTs the artist’s Soul carries, the easier it would be for buyers to identify the Soul as belonging to that artist, and thereby also confirm the NFT’s legitimacy. Artists could go a step further to issue a linked SBT stored in their Soul that attests to the NFT’s membership to a “collection” and vouches for whatever scarcity limits the artist wishes to set. Souls would thus create a verifiable, on-chain way to stake and build a reputation on the provenance and scarcity of an object. Therefore, a Soulbound token is conducive for more people to find their value beyond what they can afford.
A Fresh Start from DREP DID
Although SBT is a great vision, “there are still technical challenges in doing this” as Vitalik Buterin stated. However, before it comes up to the stage, DREP has already prepared for such pain points in the industry.
An ecosystem of SBTs could unlock a censorship-resistant, bottom-up alternative to top-down commercial and “social” credit systems. SBTs that represent education credentials, work history, and rental contracts could serve as a persistent record of credit-relevant history, allowing Souls to stake meaningful reputations to avoid collateral requirements and secure a loan.
DID has the same ability in storing personal data. DREP DID is based on HMAC (Hash Message Authentication Code) algorithm, forming a dual-layer system of master ID and multiple sub-IDs to achieve data connectivity and privacy protection. This means with DREP DID, the on-chain reputation of a person is recorded automatically through the transaction data, historical behavior, and so on. Thus, problems like trepid in making transactions because of lacking trust can be lowered to a minimum extent.
More Surprises to be Explored with DREP Credit
“A Soulbound item, once picked up, cannot be transferred or sold to another player.”
As its name goes, SBTs belong to individuals, and they commonly are non-tradable, because trading makes them lose their value. However, DREP Credit mechanism is designed to realize personal reputation and maximize the value. Personal credit data is transferrable in DREP, that is to say, accumulated credit or reputation points can be realized as a form of DREP token. This monetization mechanism, credits to earn, is what DREP developed to optimize community security and dive into a more dependable Web3.0.