Sumitomo Mitsui Financial Group (SMBC), a Japanese financial company, will investigate the benefits of Web3 by issuing soulbond tokens (SBTs).
As suggested by Ethereum (ETH) inventor Vitalik Buterin, SBTs are digital identity tokens that reflect a person’s or entity’s qualities or reputation, or a “soul.” These coins are not transferrable and were designed for use in Web3 and decentralized society.
Sumitomo Mitsui’s distribution of the soulbound tokens is part of a bigger attempt to examine the possibilities of web3 technology. Web3, often known as the decentralized web, is a phrase used to characterize the internet’s future generation. It is based on a decentralized network of computers that enables users to communicate with one another without the requirement of central servers or middlemen.
Sumitomo Mitsui is not the only corporation experimenting with web3 technology. Many other financial institutions and technology firms are looking at using blockchain and other decentralized technologies to develop more secure and efficient ways of managing digital assets.
It remains to be seen how effective Sumitomo Mitsui’s soulbound token experiment will be, but the company’s efforts reflect the rising interest in the possibilities of web3 technology.
Comments (No)