Will you believe me if I say that another entity is ahead of NFT, like its upgraded version? Neither could I. But then, I learned about Non-Transferable Tokens (NTTs). I am delighted and excited to share more information about this ingenious creation.
History behind NTT
If you take a look at the crypto industry, it is evident that this sector continues to reveal new technologies. The crypto ecosystem is intensely trying to create solutions for every industry problem to boost usage and productivity. We all know virtual currencies have some trust issues among the public, specifically among the leading stakeholders.
Due to transferable tokens, false authentication of assets has occurred on a blockchain. That is when a new entity, more like a bounded token, came into existence. The name is “Non-Transferable Token (NTT).” Let me explain how it revolutionized digital assets in a detailed way.
What Is A Non-Transferable Token (NTT)?
As the name suggests, non-transferable tokens have untransferable properties. As I mentioned earlier, NTT is the advanced version of NFT with only a slight contrast in transferability. Moreover, you can develop it by hiring the best NFT token development company.
NTT is also known as SoulBound Token (SBT) because it is permanently bound to a crypto wallet. They assure credibility, reliability, integrity, and affiliations on the Web 3.0 network. Using NTT, a user will never be able to trade off their status on the network.
How Does NTT Work?
The working of NTT is uncomplex. It is quite similar to NFT, but the only variation lies in the transferability part. NTT operates in a unidirectional manner, whereas NFT operates contrarily. Thus, only the SBT creator will have the authority to issue a token to another address.
This transaction technique enables open verification of NTT, issuers, and the eventual receiver. This is the reason why NTTs do not have any market value and are unavailable in any marketplace.
What Are The Benefits Of NTT?
NTTs get rid of trust issues we previously experienced in the case of NFTs. This will be the perfect technology to solve the threats to business and financial stakeholders arising from the shady side of Web3 anonymity. At the same time, NTTs do not stop by verifying the ownership of an asset but also confirm their social status. So, users can verify the credibility of the anonymous charter before engaging in any business activities with them.
Additionally, NTTs may act like a digital certificate of a candidate, containing details about their work experience and reputation. I believe that NTTs will emerge in the same way utility tokens did.
Top Use Cases Of NTT
In this section, I have discussed a few use cases of SBTs existing in the theory stage. For your attention, these are the only prototypes that are yet to be implemented.
- Digital CV
SBTs can act as the digital curriculum vitae of an employee. It is verified publicly by previous employers, increasing the credibility of one’s CV.
- Health data record
NTTs can be helpful for those who often change their doctor. In such circumstances, it will be easy for them to keep track of their medical history with no excess paperwork.
- DeFi lending
You might be familiar that most DeFi platforms will not provide uncollateralized loans. But DeFi lending is possible by leveraging SBT.
- Academic certifications
An educational institution can use SBT to award academic certificates and proof of attendance, simplifying the student verification process.
However, creating these digital tokens is possible only with the assistance of a leading NFT Marketplace development company.
Above all, NTTs will grow up and beyond their current situation. By adding them to the Web3 ecosystem, we can solve issues related to trust issues and personalization in this space.