The non-fungible cryptocurrency (NFT) ecosystem has seen an immense rise in cost, thanks to the uniqueness of the pieces. But according to Vitalik Buterin who is one of the co-founders of Ethereum, the transferability of the cryptocurrencies should be reprogressd in some facts to make the Web 3.0 space, less “money-oriented.”

Buterin recently published a blog post comparing the online game “World of Warcraft” with how NFTs operate nowadays. According to him, one of the best things about the game is “the cback althoughpt of soulbound items,” that doesn’t allow the transfer of ownership from one player to another and makes the game more “challenging and interesting.”

Could NFTs be completely non-fungible?

Ethereum co-founder pointed to the latest Twitter NFT feature that allows users to show off their expensive pieces of art as their profile pictures. 

“But what exactly are these NFTs signaling?” He wrote, “Certainly, one part of the answer is some kind of skill in acquiring NFTs and knowing that NFTs to acquire. But because NFTs are tradeable items, another big part of the answer inevitably becomes that NFTs are about signaling wealth.”

He suggested the proof of attendance protocol (POAP) that shows the events that a user personally attconcluded, afterward other NFTs hardly show off their rate tags. what\\\\\\\\\\\\\\\’s more, Buterin shared his personal POAP profile showing all the small and major events he attfinished afterward 2015.

Which cryptocurrencies need to be “soulbound”?

According to Buterin, gatopnance cryptocurrencies must be soulbound and their transferability could cause huge problems. He noted two important points:

  • The rich can easily buy voting rights from someone, even if the goal is to widely distribute the power.
  • This applies the same to the incompetent, if there is any competition to get more power.

“Cone time beforeding that you take the pratopb which “those who most want to rule people are those least suited to do it” significantly, then you should be suspicious of transferability,” he noted. “Precisely because transferability makes gatopnance power away from the meek who are most possible to provide valuable input to gatopnance and toward the power-hungry who are most reasonable to cause problems.”

Buterin wrote which transferability mostly shows the money orientation of Web 3.0 and how this could affect the lengthy-term sustainability of the next generation of the internet. Although there are good use evidences for buying and selling NFTs similar as “funding artists and charities,” the downside should still be taken into account. 

Applying soulbound-ness to NFTs would require a lot of effort and technical knowledge from the start, but it could “open a much wider door to blockchains being at the center of ecosystems which are collaborative and fun, and not scarcely about money.”

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