E. Glen Weyl | Decentralized society: looking for the soul of Web3

On September 20, the 8th Blockchain Global Summit hosted by Wanxiang Blockchain Laboratory was held in Shanghai. The founder of RadicalxChange, a researcher in Microsoft CTO's political economist and social technology expert office - E Glen Weyl introduced the soul bound token (SBT) in his speech. He believes that the soul binding is different from the standard NFT. SBT is not a financial item or financial asset, but represents the relationship between the issuer and the recipient, rather than the recipient's property. Meanwhile, E Glen Wey also listed scenarios that SBT can solve and use: 1. Solve DeFi unsecured loans; 2. Resolve the scarcity commitment of NFT issuance; 3. The issue of the governance token of the DAO.

Some are E Full text of Glen Weyl's speech:

Thank you very much for your invitation. It's my great honor to share our vision with you today.

I think such a vision is affecting the entire Web3 ecosystem, and can affect how we solve the fundamental limitations of the current DeFi infrastructure. DeFi has really changed the world's finance and changed Web3. DeFi provides unparalleled opportunities to allow us to conduct financial innovation, speculation and trading, and so on.

But at the same time, DeFi has no way to implement some basic functions of the traditional financial system, at least not independently.

one sideOn the other hand, DeFi does not support unsecured loans.For example, credit card or store credit system has been followed for hundreds of years.

The reason for this contradiction is that in the ecology of Web3, everything is tradable and everything is transferable. If you want to borrow, everything that can be used as collateral is transferable assets, not someone's reputation, background or potential for future development.

Similarly, we have seen a large number of opportunities in the field of NFT. The overall value of NFT market has seen explosive growth, and now it has kept pace with the sum of other art markets.

On the one hand, Web3 platform allows us to trade NFT. On the other hand, there is no way to create the value of NFT.

Because the value of NFT comes from its scarcity,The reason is that the artist who created NFT promised that he would not make similar copies again, which is a promise that wallet simply cannot make,Wallet cannot make such promises and statements. Artists must issue press releases on the Web2 platform, which affects the infrastructure of Web3.

The DAO organization is the core of the potential of Web3, and the governance of the DAO should be the most potential of the DAO so far,However, so far, DAO governance is mainly achieved through homogeneous tokens that can be traded.That is, anyone who has enough strength to buy more than 50% of tokens can seize the value of the entire DAO ecosystem, which affects the development potential of DAO.

We and VitalikPuja Ohlhaver published a paper together。 This paper proposes how to solve the problems just mentioned synchronously, which has become a phenomenal paper of the Web3 community. Less than a month after its release, this paper has become the top 50 papers in the field of social science network downloads.

Beeple, a well-known artist, also released commemorative NFT for the paper,The core of this paper is to build a decentralized society, and the starting point is a new token, which we call soul bound token, or "SBT" for short.

These soul bound tokens, at least initially, should be open and non transferable. They represent the statement made by the wallet to another wallet. The issuer can revoke these soul bound tokens, but the receiver cannot transfer them, at least not unilaterally.

These soul bound tokens represent the experience you put in your resume, or the statement you will make to the public. For example, the cause you support or the organization you participate in, the badge you have, the qualifications you have, the monograph you have published before, and the things you are proud of.

These soul bindings are different from the standard NFT. They are not financial goods and financial assets, but represent the relationship between the issuer and the recipient, rather than the recipient's property.

I know that you have various questions about the privacy of soul bound tokens, because by putting these soul bound tokens on the blockchain, there are various privacy issues. I think these issues are very important, and I will discuss them with you in detail later.

But before discussing privacy, I want to introduce the possibilities of these soul bound tokens from a strategic perspective, and then introduce what protective measures are taken around these soul bound tokens.

First, explore the classic problems in the current DeFi ecology. When you issue NFT, you must issue a press release to prove its scarcity.

Because you can't really promise that such a statement is binding. As an individual, you have a wallet, but I'm bound. I won't transfer it. On the contrary, you can issue tokens, which represent your past qualifications, meetings you have attended and monographs you have published. Then you can put the non transferable tokens in your wallet as a signature for the tokens you can transfer to others. Anyone who holds these SBT non transferable tokens can check whether you have kept your promise and whether you have issued additional NFT artworks to undermine their scarcity. That is to ensure the scarcity of NFT in this way.

Just as blockchain solves the problem of double flowers, the problem of double issuance of artworks can also be solved by binding tokens with non transferable souls.

Another good example is that there are huge problems in the current Web3 ecosystem. You can easily lose your private key or be attacked by hackers, or someone kidnaps you or forces you to hand over your private key.

Some people trust their keys to others to solve these problems, but this actually destroys the basic value of decentralized ecology. To solve this problem, other people have recently resorted to social solutions, that is, to cut the key into pieces, put them in different wallets, and put these pieces together to form a complete key or prevent you from conducting large transactions. But in this way, the problem is that you need to give these fragments to different related parties, and ensure that they always have the latest information. You need to synchronize the status updates, but you can solve this problem by binding tokens to the soul.

For example, you can use SBT to designate a group of people who can help you recover the key, so that you can solve the problem of key loss in a dynamic way.

DeFi ecology also allows us to achieve a lot of growth and speculation, so it includes some very basic questions about how to lease your property. For example, how to rent a house or apartment to others is not feasible in the ecology of Web3.

If you rent your property to others in the world of Web3, because it is transferable, the tenant can resell your property to others again, which will create an unlimited resale and sublease problem, which is different from traditional lease agreements.However, after issuing the SBT soul bound token, you can lease your assets to others and specify a lease term, during which only the specified tenant can obtain access to the assets.This is the problem that needs to be solved in the ecology. It can be solved by binding tokens with the soul.

In addition, these SBTs can help us realize more possibilities.

For example, for new projects, new protocols and new tokens, air drop is a very important way to help them start and develop quickly.

However, there is a problem with airdrop. When there is time and space, airdrop will only be used for wallet, which is easy to be attacked by hackers, or airdrop will be used for some people who already have tokens, thus making the rich richer. However, you want to use airdrop for those who contribute to the community, are active in the community, and contribute to the agreement.

You can use SBT and calculate who should be airdropped to. Once the airdrop is issued, you do not want to accept the airdrop person to sell it immediately. Otherwise, the meaning of airdrop is that you want these people to hold their airdropped tokens for a period of time. So you can specify a lock and unlock period through SBT to achieve this goal.

Second, this kind of ecology allows us to achieve more abundant, horizontal and social based lending.

For example, the Grameen Microfinance Bank in Bangladesh used people's social relations to judge who has the ability and willingness to repay loans. In this way, when you lend money to others, you publish the loan information on the person's personal information page, and ask his friends to jointly guarantee, and send the relevant information on the friend's personal information page.

In other words, they will gamble on their reputation, and once they repay, the information will be deleted. However, as long as such information appears on the personal information page, other lenders will think again when granting loans, and solve the problem of unsustainable borrowing in this way, so as to realize borrowing without mortgage.

Finally, I want to share with you that you can use them as signatures to create value for NFT. These signatures can not only help us create money value, but also help us create truth value.

In the era of DeFi technology, it is very likely that you are easy to cheatTherefore, it is crucial that social signatures can prove that the origin is true, and signatures from reputable accounts can help us verify and prove, so I think SBT will become another important dimension for us to think about integrity and social relations.

In addition, it allows us to completely rethink social institutions and realize the vision that people have always hoped to achieve with Web3 tools through Web3 technology.

We have seen some signs of phenomenon, such as Optimistic. The governance mode of the Optimistic DAO is to combine SBT soul binding tokens with more traditional transferable tokens. The ultimate goal they want to achieve is not only to be a non transferable governance token, but to take advantage of people's various social relationships, including what meetings they have been to and what relationships they have had. Some people are members of the community, and they will cooperate, but we also hope to achieve cross community consensus, not just the consensus within the community.

We hope to expand the diverse backgrounds of people involved in a cause, and SBT allows us to achieve this. In addition, he also allows us to create the most powerful prediction paradigm. On the one hand, there is the vision of AI, which uses human data to make prediction models without people knowing it; On the other hand, there are extremely financialized "gambling pools", which are generated by the prediction market.

However, soul bound tokens allow us to seek balance in the middle. in other words, use the soul bound token to combine it and associate the model with the data, so that we can reward those who provide high-quality data.In other words, through the combination of a large number of data and artificial intelligence models, a more powerful prediction tool can be formed.

At present, the NFT ecosystem allows us to have private ownership of property, that is, we can combine the right to use, the right to sell, the right to destroy, and the right to benefit from finance. But imagine that in other aspects of the company or society, we can often only use or access an asset, but have no right to dispose or sell the asset.

For example, as an employee of Microsoft, I can use Microsoft's facilities and equipment, at least part of them, but I cannot sell these assets. Maybe I can buy Microsoft shares and get some financial income, but I can't dispose of others' shares. SBT allows us to combine these rights, allow others to buy certain assets from us at a certain price, and then separate ownership and financial benefits.

In this way, we can copy the richest and most diversified asset network in the world, and create a new network through this possibility. In this way, the social vision can be truly realized. Such a society will be closer to the vision that the founders of the Internet want to achieve.

At present, we have a top-down AI perspective, centralized control and monitoring, and are completely based on financial institutions. Everything is tradable. However, the reason for building a network on the Internet is that social thinkers such as John Dee proposed that society is not a single individual in the market, nor a top-down organization, representing people gathered together to cooperate, interact, and form a network. Therefore, replace the centralized system or market in this way.

We hope to have a system based network to replace the above.

In the process, privacy needs to be protected. It is not just simple that everything is open like on the chain. Privacy needs to be protected, but it is not an open and private perspective. Instead, it should be from the perspective of access control. Which community can obtain which data? Which communities can share which data? This ensures the integrity of data and allows the use of data.

I believe that these visions can be achieved through decentralized social and soul access to tokens.

It is increasingly clear that the next upward cycle of the encryption world is based on these visions and related visions. For example, certificates that can be verified, like Jack Dorsey, the founder of Twitter, has always advocated. For example, in Ethereum New York, the largest developer conference in the community, all winning projects are related to soul bound tokens.

Therefore, I believe that this is the core of the future, and I believe that all leaders of the Web3 ecosystem will also join this cause. thank!