On the Existential Basis of Self-Sovereign Identity and Soulbound Tokens: An Examination of the “Self” in the Age of Web3

Abstract

The blockchain social movement led to the emergence of Web3, a new, token-orchestrated iteration of the World Wide Web comprised of decentralized applications. With Web3, users can adopt a unique digital identity, known as a self-sovereign identity, that allows them to have access to their data and be central administrators of their transportable and interoperable identity. An inherent feature of digital identity in Web3 is that, in some cases, it can live forever. Web3 users, therefore, may accumulate digital assets, such as non-fungible tokens, in an attempt to leave a digital legacy behind. Terror-management theory, a social and evolutionary psychology theory, was theoretically applied to the act of digital asset accumulation as a potential mechanism of escaping death-related fears. In contrast, the current uses of non-fungible tokens (i.e., proof-of-ownership) and soulbound tokens (i.e., proof-of-character) were evaluated from a Logotherapy perspective to inform how Web3 could evolve toward a Decentralized Society.