In the past few years, the way crypto wallets work has changed a lot. They started out by holding tokens or acting as art galleries with NFTs. Many people use them like bank accounts now, and soon they will be able to accept digital curriculum vitae (CVs), which will make them even more useful.
Vitalik Buterin, a co-founder of Ethereum, and others came up with the idea of “Soulbound tokens” in a paper published in May 2022. (SBTs). Buterin and his co-authors argued that credentials on a blockchain are a good way to show where something came from and how trustworthy it is.
The NFTs will be important building blocks
SBTs are similar to PoAPs, but they cannot be transferred and are therefore tied to a wallet. People should not be able to purchase credentials that do not reflect their own achievements. Consequently, these tokens should not have a monetary value. In September, Binance stated that it would implement the Binance Account Bound (BAB) token as a proof of identity for its users.
Getting more use out of DeFi loans
The Aave team made the Lens Protocol, which is another exciting project. Lens is a social graph that can be added to and doesn’t have a central point of control. It can host different social media apps. Users get an NFT, which is their user account for all decentralized applications (DApps), and a Lens handle. Every time you use your Lens account, your handle is saved and linked to it.
Users might wanted to know why a big name in decentralized finance (DeFi) like Aave is starting a social media platform all of a sudden, but it makes sense. Like all other DeFi platforms for lending and borrowing, Aave only lets people take out overcollateralized loans. This is because users don’t give as much information as they do for traditional finance (TradFi) loans, which don’t need to be oversecured because banks know more about their clients.
By making Lens and a trusted reputation system for user wallets, Aave will be able to offer unsecured loans like TradFi once reputations have been set up. This is just one of many reasons why on-chain reputations are helpful.
This will happen because of the gig economy
Although a lot of people doubt that this way of speaking will catch on, it makes perfect sense. People like freelance coders, designers, and bloggers are doing more and more work in the so-called “gig economy.” Projects have to choose the right people for what they need.
Establishing a culture of verifying credentials on-chain and keeping them in a wallet will help these people build a reputation faster and allow employers to check on the CV, since trustworthiness can be easily checked. For this reason, the idea of SBTs makes a lot of sense, since these NFTs shouldn’t be able to be traded.
On many Web3 projects, the teams are small, and there isn’t a professional HR department to check the candidates’ credentials. But with digital CVs, credentials will be much easier to check. One could even imagine that a candidate could get a job automatically if their wallet contained the right credentials.
It’s hard to say if Web3 CVs will be widely used because it also depends on how many people use crypto-related infrastructure and how much UI and UX improve. But we know for sure that, at least in the crypto world, they will become the norm.
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