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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
  79. 79. Typical vulnerabilities and bridge security in blockchain technology
  80. 80. JumpNet - Ethereum's new sidechain
Lesson 29 of 80
In Progress

29. Soulbound Tokens – what are they, and how do they work?

Soulbound tokens  can have a real impact on development and the way it is formed in Web3. Well, even though their name is super unintuitive – “soul” does not suit us in the crypto industry – they can change the way we relate to each other, manage communities or how we share information.

In today’s lesson, we’ll explain what these tokens with the “soul” are , to what part of Web3 they belong, how they work and where they can be used.

What are Soulbound Tokens (SBT)?

In May 2022, this phrase was used for the first time. This kind of proposal tokens came from E. Glen Weyl, Puj Ohlahaver and Vitalik Buterin. Soulbound Tokens are to be a fundamental block in the Decentralized Society – the new trend of Web3. 

However, before we go into more detail about new souls, we need to remind ourselves what DeSoc is.

Decentralized Society (DeSoc) is based on cooperation between network users. Gloriously, it’s about to changeWeb3 to something more exclusive, democratic and decentralized.

And it is here, on a white horse like Roland, that our “souls” enter. Soulbound Tokens are the basic element of Decentralized Society. Our new non-transferable tokens are meant to represent our commitments, affiliations, traits, properties, and even achievements. At the same time, they create social relationships on Web3 networks.


About the new one generation of the InternetMetaverse, almost everyone says. Both of these terms are gaining popularity in the industry of cryptocurrencies, and more and more people are working on their development. What exactly is all this Web3?

This is the next generation of the internet, which puts virtually every aspect of the web in the hands of users. Its main feature is to be fully decentralized. Currently, most of the platforms we use or web applications are in the hands of global corporations. We are talking about Google, Facebook, or Instagram.

Web3 assumes that centralized servers will be distributed over computer networks. In terms of usability, it will not differ much from Web2, the Internet as we know it. However, a lot will change in terms of content ownership. In Web3, the ownership of the data will be transferred to the creator, and he will help with this blockchain technology, tokens and cryptocurrencies.

Proponents of the next-generation Internet point out thatWeb3 will abolish censorship and effectively eliminate global giants from the technology industry. Moreover, the distributed network will guarantee fairness and no need to save data (cookies) without the user’s consent.

How do Soulbound work?

We don’t have any formal specification yet for Soulbound Tokens. They are still only in the idea phase, although some of their features have already been outlined. We will share with you what we know ☺

  1. Soulbound Tokens, they are non-transferable. They have no market value and cannot be transferred to another wallet.
  2. They are mainly used to issue credentials and references. SBT is to be distributed among members of some group or institution. Interestingly, Soulbound Tokens may certify to other SBTs. That is, SBT MicroStrategy can issue references to Soulbound Tokens for the “soul” of a former employee. This helps us avoid false credentials.
  3. Since they have no market value, according to Vitalik, they can help solve problems related to fraud and theft, which are becoming more and more common.
  4. Soulbound Tokens will increase trust. “Souls” will allow users to research an artist in depth before they support his project.
  5. Tokeny Soulbound are issued and stored in accounts (wallets) named “Souls”. They can be associated with individuals, companies, etc. In Decentralized Society one man can have many souls.

However, we remind you that the system still does not exist. Therefore, its exact mechanics are unknown. For now, we are left with speculations and guesses. However, we can be sure that Vitalik Buterin will definitely surprise us.

As with the social recovery model. This is a proposed solution to protect your “Soul” wallet from being hacked or losing the key to your address. Thanks to it, users choose their guardians who help them in such situations. Keepers have access and the ability to change the private key. So, the community will be able to help in the recovery process.

SBT application

Not knowing the full mechanism and their functionality, one could presume that the potential Soulbound Tokens are unlimited. We will look at:

  1. Proof of education – companies, looking into someone’s Soul Wallet, could verify the candidate in terms of his experience, certificates or even completed courses.
  2. Virtual Wallet – completely safe, which contains your confidential data in the form of a token Soulbound. 
  3. Medical history – also represented by the “soul”.
  4. Authentication.

However, we have to wait a bit to see Soulbound in full glory.


  • Binance has released Binance Soulbound Tokens BAB as one of the forms of authentication.
  • The name “Soulbound” comes from Vitalik’s favourite game, World of Warcraft. You can read more about this interesting personality. We profiled him here.


Looking now, we see that Soulbound Tokens can become a fundamental element of Decentralized Society. A community that is formed because of common goods, network, and property will be governed by “souls”. However, we have to wait for the full presentation of these new, interesting tokens.