Understanding Souls and SBTs

Souls

Souls represent unique smart contracts, acting as a digital passport for each user on the Cardano blockchain. Every Soul is intrinsically linked to the user's wallet at creation, representing the user's unique identity within the ecosystem. Due to the specific design, Souls are immutable and non-transferrable, thereby maintaining each user's distinct identity.

Soulbound Tokens (SBTs)

SBTs are essentially Non-Fungible Tokens (NFTs) with a twist. While NFTs are unique and transferable between users, SBTs are 'soulbound,' meaning they are permanently tied to the user's Soul. The soulbound feature of these tokens is not inherent in the tokens themselves but is instead defined by the Soul's smart contract.