Soulbound NFTs — The Future?

The terminology is taken from World of Warcraft, and the next evolution of the ever-changing world of Web3 is looking like it may be non-transferable NFTs. Just as your birth certificate or passport is locked to you, these unique non-fungible assets would be tied to a user, earned through specific interactions with blockchain projects.

A History of NFTs

The deployment of the Ethereum blockchain introduced the world to non-fungible tokens, known as NFTs. These digital assets hosted on a blockchain are unique items that are not interchangeable with others of the same kind.

After seeing use through gaming, media ownership and profile picture projects, 2022 has seen the market for NFTs slow down.

However, with blockchain technology improving rapidly in speed and scalability almost daily, the next wave of utility that NFTs might offer is being explored in everything from medical records to supply chain logistics.

The ability to prove ownership of a digital asset, verifiable by the public ledger, has wide-ranging implications for a number of industries and areas of society, especially with utility attached to those NFTs.

Utility NFTs

The term utility in the context of NFTs simply refers to the ability of the digital asset to provide the owner with some sort of additional benefit or action as part of their ownership of it.

Utility NFTs is a broad, all-encompassing term that has many possible applications. As our understanding of what utility NFTs can do for society continues to evolve, the possibilities that they open up also continue to expand.

Much of the current understanding of utility is based on the ability to transfer these assets between parties. The hope is that, in the future, transactions such as property purchases will be verified on the blockchain, with NFT deeds automatically transferring to the new owner as funds are received. This is possible thanks to smart contracts.

However, a new way of thinking about NFT assets has recently been gaining traction in the form of non-transferable NFTs, referred to as soulbound NFTs.

Next Generation NFTs

As mentioned above, soulbound NFTs are NFTs which are non-transferable between people. While this shakes up the understanding of how NFTs can influence transactions in society, it does open up a new way of thinking about blockchain technology and the impact it may have.

Soulbound NFTs stay with a person for life, providing the holder with a unique asset tied to their identity.

NFTs can be airdropped to select clients, enabled by the trustless, verifiable public ledger of a blockchain. When considered in conjunction with utility NFTs, the soulbound evolution of NFTs could be a significant asset to the entertainment industry.

Artists, performers or event creators can airdrop NFTs to verified fans, which could be transferable or not. Transferable ones can create a tangible value from media associated with live events, giving fans a memento they can keep for themselves or resell.

Non-transferable, or soulbound NFTs, could give the holders access to unique perks and benefits as a way of rewarding fan loyalty or participation in particular events.

For example, attendees at a festival could scan a tag hidden somewhere within the site, which would automatically airdrop them a soulbound NFT. Although they can’t sell it, this soulbound NFT could grant them access to a VIP area or secret stage somewhere in the festival.

In addition to this, the opportunity to have soulbound NFTs displayed as badges or trophies is sure to be explored by the inventive world of blockchain development.

Endless Possibilities

Seeing NFTs and the airdrop potential blockchain provides is just the beginning of immersive event experiences. As we begin to further explore the opportunity that Web3 technology offers us, the possibilities for how we utilise it are becoming broader and more interesting by the day.

It will be the creativity of event organisers, artists and brands that drives the way in which we can utilise blockchain and NFTs, with much of it yet to be realised.

Knowing the audience through a blockchain ledger, with assets like NFTs that offer tangible value as well as additional utility, gives event-goers the option of mementoes, extra sales or enhanced on-site experiences.

The Future

We are only at the beginning of the blockchain technology revolution, yet it’s clear that it has the potential to disrupt established industries.

With increasing numbers of artists and performers turning to NFT technology as a way to enhance the fan experience, the future is bright for blockchain and experience-hungry fans.

We’re building SeatlabNFT as a way to enhance the connection fans feel to the artists and performers they love. Alongside a series of token utilities for holders of our $SEAT token, we also include the potential for airdropped NFT rewards for certain ticket types, opening up the opportunity for soulbound NFT access passes and much, much more.

For more information on how we’re redefining event ticketing, keep in touch via the channels below.