Building SBT. Part 1: ABC SBT

In the first part of the cycle, we will consider the basics of Soul Bound Tokens (SBTS) and their value, as well as offer a vision of the key features of SBTS.

a common part

one. What is Soul Bound token and why it is important?

Vitalik Buterin, best known as one of the founders of Ethereum, is a co -author of a technical document called “Decentralized Society: Search of the Web3” with his co -authors – Glenn Vale and Pudge Olkhaver, described his vision of a fully decentralized society (Desoc) and as a concept as a concept Tokens “Soulbound” (SBT) can make it a reality.

one.1 problem in Web3 space

The economic value of the world is largely created by people and their interdependent relations. Being a system fully controlled by mathematical and cryptographic functions, Web3 has no primitives for representing such social relations and identity, which led to its dependence on the centralized infrastructure of Web2, which it initially sought Destroy . [Approx. Menaskop: Of course, no one was going to destroy, of course, this is a clear misconception of the author of the original article].

The main aspects of trust and property should be in Cheine in order to increase social compatibility in the world of smart contracts, which can open many opportunities for decentralized applications.

one.2 SBT as a solution for social components

Souls are defined as wallets in which SBT is stored. SBT – digital tokens that represent the powers, obligations and belonging of “shower”. They can encode the confidence networks with the reputation and authority.

For example, in the space of decentralized finance, if the credit platform, such as AAVE, deployed SBT, each address (soul) could have a unique person on Cheyne, which would allow loans based on a credit rating. [Approx. Menaskop: which is certainly bad, because the rating != reputation].

That is, if AAVE deploys SBT, this will issue loans based on a credit ambulance itself AAVE and/or provide the possibility of composition with other Dapps.

Currently, loan points are centrally stored in state institutions such as credit bureaus.

What makes SBT powerful is that it decentralizes fundamental concepts, such as credit rating . Instead of trusting a credit bureau only because they are the only organization that stores such information, each decentralized application (DAPP) has the opportunity to choose any credit system in which it believes and develop its own judgment.

More importantly, SBT allows you to use various other applications and use options, such as the restoration of the wallet with a community, management, resistant to sybill -atams, decentralization mechanisms and new markets with decomposed, divided rights.

one.3 SBT use options

Using SBT can have many consequences. Here are some suitable examples of use that were described in an article written by Vitalik in co -authorship:

• Checking the artist’s legitimacy in the NFT project: most NFT artists rely on centralized platforms, such as Opensea and Twitter, to confirm the lack of (data) and the initial origin. SBT helps to ensure projection if the artist can connect his NFT project with his SBT.
• Unlocking lending markets with insufficient security due to reputation. SBT, submitting documents about education, the history of work and lease agreements, can serve as a constant record of a story related to a loan, allowing “souls” to create a significant reputation in order to avoid the requirements of the pledge and get a loan. [Approx. Menaskop: Again, a mixture from the author of transactional and subjective reputation and the actual leveling of the advantages of SBT].
• Mitting attacks and improving DAO management coordination.
• Sitting Sybil attacks.
• Dynamic distribution of leadership.
• Diversity in management.
• Creation of new markets with differentiated rights and permits.
• Measurement (level) of decentralization.

one.3.1 examples of using SBT in real life

Projects have already begun to implement SBT as a solution for onchain-identification.

On August 19, 2022, Binance launched Binance Account Bound (BAB) – a version of the token SoulBound, based on its own chain, Build and Build (BNB). Users whose individuals were confirmed through the “Know your client” procedure (KYC) can directly minute SBT on their digital wallets Binance. BAB will be used as KYC accounting data, indicating that the identity of users was confirmed. Third -party protocols can also use it for EVM NFT and the fight against bots. BAB can also be used by Tao to provide quadratic voting. Other NFT projects also tried to integrate SBT into their projects. ARC Community, for example, releases its Pyxis NFT for members of the community as a method.

2. SBT vision by SPARTAN LABS

Although the article by Vitalik lays the foundation for SBT, their key features, implementation and scenarios of use have not yet been fully defined. In this section, we will talk about our vision of SBTS and how various isolated projects can cooperate with social trust built into the system.

We imagine a society that combines reputation systems with the mechanisms of zero knowledge (ZK) to protect the private life of people. Baladzhi Srinivasan, who invented and popularized the phrase ” Pseudonymous economy “, Was the most ardent supporter of this concept.

We believe that SBT can unite the idea of ​​a pseudonymous economy and social component in space Web3. SBT not only serve as an additional opportunity for a trusted composition of anonymous individuals, but also provide interaction between projects and protocols, rethinking the Web3 ecosystem, which we currently have.

2.1 How a vision of SBT is realized in the real world?

Imagine a world in which most participants have souls storing SBT, corresponding to various connections, membership and authority. A person may have a soul in which SBT is stored, representing various attributes, such as the level of education, a credit rating and achievements.

2.2 Verification of attributes on the third party

How attributes in SBT can be checked and related to onchain-identification?

These trusted third -party verifiers can function similarly to the certification centers (CS), the purpose of which is to check the individual and the attachment of personality to digital certificates. These certificates are used to protect information, encrypting billions of transactions and ensure safe communication.

Before issuing a digital certificate, the CS conducts several checks of the applicant’s personality. SBT can exist in the context of Trusted decentralized intermediary DAO from the third party whose interests coincide with an accurate test of attributes. A person who wants to get SBT can pay DAO the original fee for checking. A group of unrelated persons from DAO will conduct a check before allowing SBT mining, and inspectors will receive a fee for their audit. [Approx. Menaskop: Again, the basic message of Web 3 is violated.0: Work in an unprofiting environment].

2.3 Using SBT souls of counterparties

In their most basic form, data in SBT can be declared an individual, just as we disclose information about ourselves in our resume.

However, the true potential of the system is revealed when the SBT belonging to one soul can be issued or certified by other souls that are counterparties of these connections. These soul-controls can be individuals, enterprises, institutions and other Web3 projects.

Controllers can transmit SBT to its users via Airdrop. Then users will interact with the project that updates SBT data. Then other protocols with appropriate permits can use SBT to read and check attributes. Other protocols with appropriate permits can use this SBT to read and verify the attributes of an individual. This allows web3 projects to be socially composite, allowing them to implement various mechanisms based on the attributes of an individual, for example, to allow addresses belonging to a certain organization, use its products or provide higher voting rights to key interested parties confirmed by their SBT.

For example, an influential person may be a soul that gives SBT to longtime fans. The university may be a soul that issues SBT to graduates. The organizer of the event may be a soul that gives SBT to the people who have attended the event.

In the next section, we will show how the basic principles of SBT can spontaneously arise from the very design of these tokens.

3. The key features of our token associated with the soul

Currently, there are no formal definitions of the main characteristics of SBT. In order to summarize SBT for use in Web3 projects, we have identified important qualities that SBT should have.

3.1 indescribability

Indescribability means that SBT should remain in the user’s soul or be attached to his address. There must be harsh checks to prevent the possibility of transmitting SBT.

But why should we make it indescribable?

3.one.1 management

The ability to transfer SBT can lead to management problems.

If the possibility of the possibility of transferring to the fact that the government is widely distributed, then this will lead to the opposite effect, since some interests will be more likely to acquire the rights of management from everyone else.

The transmittedness is counterproductive if the goal is to entrust the power of competent leaders.

3.one.2 identity

SBT is an individual person; Therefore, the prevention of self -posterity is crucial. Identification should not be transmitted, especially if SBT contains confidential data.

We do not want someone to easily purchase favorable attributes by purchasing SBT in the secondary market.

3.one.3 The importance of the correct implementation of indescribability

As Vitalik mentioned in his article, if indescribability is “naive”, transmission can still become a problem. Users can easily create an exposure score preserving SBT, and then sell the ownership of it.

Prevention of transmission possibilities

Other checks may be required, for example, checking onchain for whether the current owner is at the same address as the original owner and more difficult checks over time, if this is considered the necessary.

Projects may also require SBT to be original (unique) SBT, and this can reduce the incentive for creating and using wrappers designed to deceive the system.

3.2 Weightlessness

SBT can be either interchangeable or not, while the resulting function will radically differ.

3.2.1 interchangeable SBT

Fungibular SBT can be useful for the rights of voice and management, where it can be important to have an easily determined way to clarify the right of voting.

Fungible Soul trivial implementation could eliminate the possibility of transferring token similar to ERC20, with the exception of the contract or the owner himself.

3.2.2 non -interchangeable SBT

Such SBT, on the other hand, give more opportunities, because all souls are unique, and we would like to correlate these differences with their SBT. Credit history, negative reputation and level of education can be associated with SBT, while these details can be made confidential.

3.3 Privacy in SBT

Any relationship that is registered on the onchain immediately becomes visible to any person around the world, and not just their participants. By correlating SBT data, hostile entities can be able to fix the real personality of users from their “souls”.

The success of the Web3 ecosystem depends on the confidentiality . In some cases, since the basic essence that the subject represents is already public, the addition of confidentiality is not required. However, in many other situations, people may not want to disclose all the data they own, since they can pose a potential threat to them.

For example, if the status of vaccination becomes SBT, then one of the worst things that we could do will be the creation of a system in which SBT is automatically published for public viewing, as this creates social pressure on medical solutions of people.

Having included confidentiality in the development, we can prevent these negative consequences of the presence of onache-identity and increase the likelihood of creating something phantasmagoric.

3.3.1 What data should be stored secret?

Sensitive data or those that allow attackers to correlate and fix the personality of a person. Examples include:

• personal data
• Medical data
• Financial data
• Data based on reputation

3.3.2 How can we maintain data confidentiality in SBT?

There are various ways to maintain data privacy, for example:

3.3.2.1 Heshching data

Data hash is a relatively simple way to keep data secret. Hesh is a one -sided conversion of the input data of a fixed length. For example, if we could introduce the secret of “Spartan Labs” into a hash function. The hash-function transforms this data into a series of hexadecimal numbers such as CA9210DA4BD8DDA215176E8621B847DA40FFA2158EFF5D14613DFA695.

This is a hexadecimal number of fixed length, which means that all the results of the hashing have the same length and it is impossible to statistically remove “Spartan Labs” from it.Hash functions used here-Sha-256.

If the hash data corresponds to onchain-Hesh, the user attribute can be verified. Other parties will not be able to view SBT data, and the reliability of the data can be proved if the results of the hashing coincide.

3.3.2.2 encryption with a symmetrical key

Projects can give users a secret key to which they can encrypt their data, and then share it with other projects that may need to check their data.

However, this is not a simple method, and it requires that the user keeps his symmetrical key secret, and other Web3 projects that want to use the user SBT must implement the same decryption process.

3.3.2.3 ZK-Proofs

Evidence with zero disclosure (ZK order) allow people to prove arbitrary statements without revealing any information except the approval itself.

ZK-ordering can be calculated over SBTS to prove the characteristics of the soul (for example, that it has certain memberships) without disclosing what these are the characteristics.

This is widely used in L2 using ZK-Rollup technology, such as ZKSYNC, Polygon Hermez and Scroll. We will explore the implementation of privacy in SBT in the second and third articles of the cycle.

3.4 offchain storage

Data for SBT can be stored onchain or offchain, depending on the needs of the project. If the data is stored in the chain, they can be stored in a separate contract with reference to another address, or they can be stored in the SBT contract itself.

However, storage of data onchain requires large computational costs .

Therefore, we suggest that one of the key features of SBT be able to integrate the storage of offchain data, just as the ERC-721 stores its metadata (. Menaskop: What is generally bad again). This will allow you to connect with SBT less expensive and various data types.

3.5 Issue and verification of souls

The release and verification of SBT attributes are crucial for the composition.

3.5.1 Verification of the soul

The SBT interface should be designed so that other projects can easily interact with the user SBT. For other Web3 projects, it should not be difficult to develop a mechanism for checking the user attributes. This means that the attributes of the soul can be easily requested by onchain and checked.

If SBT is stored in offchain, the standard should be proposed how other projects can request data based on the data structure stored precisely.

If SBT contains private data, there must be a simple way (1) to check the URI provided by the user, or (2) to prove that the user has a certain attribute without revealing URI, but only the hash of the secret itself. This applies to the use of ZK technology.

3.5.2 SBT data update

To prevent the user’s falsification, only contract owners have access to the user SBT update. However, projects must make other services offer changes in their SBT data.

3.5.3 SBT issuance

Projects can easily issue SBT users to users. This can be done in the same way how NFT is minted or how AirDrops are carried out.

four. How key functions SBT work for Web3 projects?

Suppose the project wants to have a smart contract, which allows you to interact with the contract only to users with KYC information. This smart contract can perform various actions based on user data attributes. Other projects should be able to check and perform operations with the user data on the blockchain.

However, everything is anonymous in the blockchain, and the user has only its address as a publicly checked attribute. The project can consider using SBT as a mechanism for identifying onchain and storage of KYC-data user. In order to use SBT as such a mechanism, the project may take the following actions.

Users provide their KYC information, which is checked by real entities. After checking this information, the SBT Minit project for the user. Information provided by users is encrypted and stored offchain.

Other contract projects can also check that users have passed KYC and have certain attributes, but do not know specific information about the user. These KYC attributes are private due to encryption.

However, users can provide secrets to other contract projects, which gives them the opportunity to read and check their private information.

Users can update their offchain information by offering changes to the main responsible project. In the next two articles of the cycle, we will talk about how projects can implement such mechanisms using SBT.

5. Conclusion

SBT are indescribable, non -replaced tokens with data based on reputation, access https://gagarin.news/news/court-rejects-the-arrest-warrant-for-do-kwons-assistant/ to which only selected parties can get . The integration of social identifiers with a non -blessing composition, if everything is done correctly, can change the future of the Web3 ecosystem.

In this article, we set out our SBT vision, potential options for their use and key functions that should be implemented for SBT. We sketched the principles of SBTS design, but our work is just beginning.

In the next article, we will consider the implementation of SBT based on the design principles considered in this article.

Denial of responsibility : This publication is intended only for general familiarization. It is not an investment council, recommendation or call to the purchase or sale of any investment and should not be used to assess the advantages of making any investment decision. It should not be rely on as an accounting, legal or tax council or investment recommendation. This message reflects the current opinion of the authors, has not been done on behalf of Spartan Labs or its branches and does not necessarily reflect the opinion of Spartan Labs, its branches or persons associated with Spartan Labs. The opinions reflected in this document can be changed without updating.

This is part 1 of three parts of the series of articles on the technological study of Soul Bound tokens, the co -authors of which are Yong Kang Chia and June Hao Yap from Spartan Labs.