Soulbound tokens that permanently encode personal data on-chain risk turning privacy breaches into unchangeable records. Developers must avoid over-aggregating user information or linking anonymous blockchain identities to real-world legal identities, since blockchain records are immutable and cannot be deleted.
If in this app we suddenly reveal too much about you or we accidentally link your anonymous identity to your legal identity, that's a huge fuck-up on our side. And we as builders, we fail our user because they want to remain anonymous and we want to show off as much about them as possible because we give the value to our users in this way. But there is a world where we show too much and suddenly everything is broken because we aggregated too much and we didn't Curate this data properly. And in the age of blockchain where everything is immutable and forever, what does that mean? Exactly. Maybe we're going to issue like an SBT badge, a soulbound token to you saying too much, and suddenly it's permanently on-chain and the whole system breaks. And this is one of the largest critiques of the social Web3 systems that is out there, and it's very valid.
