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DefinitionNFTs & Gaming

Soulbound Token

A non-transferable digital token that represents an identity, credential, achievement, or membership tied to a specific wallet.

A Soulbound Token, or SBT, is a type of blockchain token designed to stay permanently linked to one wallet rather than being bought, sold, or transferred like most NFTs. The idea comes from the concept of “soulbound” items in games, where certain gear cannot be traded once assigned to a character. In crypto, an SBT can represent something personal or reputation-based, such as a course certificate, event attendance record, professional credential, community role, or in-game achievement.

Soulbound Tokens matter because they can help build identity and trust on-chain without turning every digital record into a tradable asset. For example, a gaming guild might issue an SBT to members who complete a difficult quest, proving the achievement without allowing someone else to buy that status. Similarly, an education platform could issue non-transferable certificates to learners’ wallets. Because SBTs are tied to identity and reputation, they also raise privacy and recovery questions, such as what happens if a wallet is lost or a user wants certain credentials removed.

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