Thread by @cheqd_io

Another great feature of @fraser_again on @TechNative discussing why #NFTs & #SBTs aren’t the best solutions for digital identity. Read the thread 👇

technative.io/why-nfts-and-s…

From fraud through to #privacy issues, here are the top use cases that NFTs and SBTs fail to deliver on or would be better “augmented” by fit-for-purpose digital identity solutions, such as #SSI including #VCs.

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👉 Using #NFTs to access Discord servers 👈

Decentralised Autonomous Organisations (#DAO) have started issuing NFT’s as identity proofs to access private channels. This did not stop the NFT’s from being sold and often leaves the person in the channel.

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Having no way to maintain who owned the NFT doesn’t guarantee the identity. SSI bypasses this issue.

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🤝 Peer-to-peer trading 🤝

#P2P trading is happening on Discord & other platforms. Outside of NFT marketplaces there’s no way to verify a seller has control of the asset. A scam trap is a risk here. SSI and VC’s would mitigate this risk without breaking privacy.

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👻 What about SBTs? 👻

Described as a non-transferable type of non-fungible token, SBT’s won’t be transferable but can be revocable. These can contain personal information and be issued by an individual or entity. SBT’s have more security as they cannot be transferred.

This could also mean more personal data written on-ledger.

😎 priVaCy 😎

The differences largely come down to the privacy stance each technology uses with VCs avoiding any traceable transactions on ledger whereas NFTs and SBTs aiming for the opposite.

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technative.io/why-nfts-and-s…