The digital world has come a long way, particularly in terms of identity preservation. This has brought experts such as Jack Dorsey and Vitalik Buterin to the forefront of the conversation. Buterin proposed the idea of soulbound tokens (SBTs) which serve as un-transferable Non-Fungible Tokens (NFTs) to represent identities and achievements in the Web 3.0 domain. However, the panelists at Consensus 2023’s “Not Your Keys, Not Your Identity: How to Protect our Most Precious Asset” strongly disagreed with the idea.

The panelists unanimously agreed that SBTs do not serve a real purpose and will not help decentralized identities. Block’s Head of Decentralized identity, Daniel Buchner further elucidated, stating that decentralized identities do not need a blockchain or a token solely for the sake of having one. His statement was echoed by Evin McMullen, the CEO and co-founder of disco.xyz. McMullen further explained that if any Non-Fungible Tokens (NFTs) are linked to a person’s key, it would be difficult to differentiate between wanted or unwanted assets.

The third panelist, Tyrone Lobban, agreed with Buchner and McMullen. He also urged developers to gain experience with verifiable credentials. The deductions from the panel were particularly important considering Buterin’s standing in the cryptocurrency domain.

This debate shows that though these identities are important, there are still some questions left to be answered. However, the idea remains that developers should utilize existing credentials for digital identity protection and both appreciate and understand the valuable role that decentralized identities play in our digital lives.



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