The concept of attestations is gaining traction across diverse circles, driven by the growing necessity to devise innovative and reliable methods for verifying the accuracy and integrity of information in both our physical and digital environments. This demand is particularly pronounced in the face of increasing incidents of deepfakes and disinformation prevalent in the media.
Despite the rising interest in attestations, there is a notable tendency for them to be misconstrued and mistakenly categorized as a subset of digital tokens on a ledger. More commonly, they are often equated with Non-Fungible Tokens (NFTs). Furthermore, it has been observed that in numerous instances, NFTs, along with their associated complexities, are implemented unnecessarily for tasks that could be more suitably accomplished through the use of attestations.
In this article, we aim to put to bed the misconceptions surrounding attestations and tokens, emphasizing their fundamental differences in both structure and purpose. Specifically, we intend to highlight how attestations diverge from tokens and advocate for attestations as a more appropriate means of verifying interactions on the web and in the world around us.
For all intents and purposes of this article, our primary focus will be on Non-Fungible Tokens (NFTs), and we may use use the terms ‘NFTs’ and ‘tokens’ interchangeably in our discussion.
Witness Proofs vs Tokenized Artifacts
Blockchain-based ledger systems represent a potent piece of infrastructure technology that underpins entire ecosystems within both the physical world and the digital realm. A fundamental capability of blockchain-based ledgers lies in their capacity to record extensive volumes of data, i.e., historical data, transmitted as messages from various corners of the globe. Moreover, these systems excel at tracking and managing numerous assets registered on their ledgers through the utilization of tokens. Tokens serve as the foundational unit of account within the ledger of any blockchain-based system.
NFTs stand out as a distinct category of tokens within blockchain-based systems. They are crafted as individualized units of account on a ledger, characterized by embedded traits or details, typically in the form of metadata. Notably, NFTs possess unique properties such as transferability, non-fungibility, and programmability. These singular units of account serve as representations of both physical and digital objects or artifacts within a blockchain-based ledger. Prominent examples of items that have become widely recognized as tokenized assets on such ledgers include Nike’s Cryptokicks iRL and Beeple’s Everydays: The First 5000 Days
Attestations serve as witness proofs created to certify and validate the truthfulness of a statement or assertion. They are designed to enable anyone to verify their validity at any time. These proofs, are essentially messages logged within a system, such as a blockchain, for the purpose of record-keeping and review. Importantly, attestations do not inherently function, nor are they intended to function, as units of account for any object or artifact within a ledger. Their primary role lies in providing verifiable proof of the accuracy of an assertion rather than facilitating transactions or asset management within the ledger.
From the explanations provided, several key differences emerge between attestations and NFTs in practice. Here are two main distinctions highlighted:
Transferability:
- NFTs, being tokens, inherently possess transferability as a core property. They can be transferred from one party to another within a blockchain-based ledger system.
- In contrast, attestations are not transferrable. They are embedded as immutable messages within the history of a blockchain-based ledger, similar to regular transactions.
- For instance, in a court scenario, imagine an alibi presented as an attestation within a blockchain. Like witness testimony in court, this attestation serves as immutable evidence logged within the blockchain’s historical record. Just as witness testimony cannot be transferred between parties, an attestation, representing an alibi or any statement, remains fixed within the blockchain’s history, highlighting the distinct purpose of attestations compared to tokens.
Plane of Existence (Storage Medium):
- NFTs exist as unique units of account directly within the state of a blockchain-based ledger system, which is typically in memory. Their creation contributes to the ledger’s overall state, which can become resource-intensive and costly to maintain as more NFTs are generated.
- Attestations, however, are created as messages logged into the historical data of a blockchain, which is typically on disk. In systems like Ethereum, attestations can be recorded as call data, which does not directly impact the state of the ledger but rather consumes the data bandwidth provisions of the system, which is observably more manageable and less costly to maintain compared the ledger state.
As you delve deeper into the field of attestations, you’ll uncover numerous distinctive features that point out the disparities between them and NFTs.
Never Send An NFT To Do An Attestation’s Job
The beginning of any emerging technology, field, or industry usually entails facing steep learning curves and experiencing numerous instances of trial and error. Blockchain-based ledger ecosystems are no exception to this rule, and it’s expected that participants will largely rely on available tools, albeit rudimentary, until they discover more suitable alternatives.
In recent years, there has been a surge of interest in the concept of NFTs and their potential to enhance our daily lives and interactions. This has led to a proliferation of new ideas and experimentation aimed at discovering practical use cases for this technology. However, this enthusiasm has also resulted in instances of using inappropriate tools for the task at hand and developing solutions that seem to be searching for problems to solve.
Over time, it has become evident that many applications and solutions could be better implemented by leveraging attestations instead of relying on NFTs.
Examples of Cases:
- Proof of Attendance tokens:
Proof of Attendance tokens, such as POAPs, are designed to verify an individual’s presence at a specific event, meeting, or appointment. However, this approach introduces risks, as individuals can transfer their token to someone else, potentially facilitating false alibis.
The non-transferrable nature of attestations makes them a more suitable option for verifying Proof of Attendance.
- Proof of Ownership tokens:
Proof of Ownership tokens are created to serve as proxy representations to prove ownership of an asset by an individual, without risking the original asset. However, the transferable nature of tokens poses a risk, as the proxy token could be transferred and misused by unauthorized individuals.
Attestations offer a better solution, allowing individuals to independently attest to ownership of an asset in a public manner, without risking the original or underlying asset.
- Soulbound tokens:
Soulbound tokens, intended to be permanently tied to a specific account on a ledger, contradict the purpose of tokens as transferable units of account. Attestations, which are inherently non-transferrable, align better with the task of issuing and tracking details about an individual, such as achievements or identity information.
In each of these examples, the limitations of using NFTs become apparent when considering their transferability. Attestations, with their non-transferrable nature, emerge as a more suitable alternative for tasks such as verifying attendance, tracking achievements, and proving ownership. By leveraging attestations, individuals can achieve greater authenticity and reliability in various scenarios without compromising the integrity of the underlying information.
TL;DR
In Conclusion…
Through this exploration, you’ve gained insight into the distinction between tokens and attestations, as well as the prevalence of token misuse in various tasks best suited for attestations. Sign Protocol emerges as the foundational framework for an attestation ecosystem poised to address these needs and beyond.
While tokens excel as units of account for efficiently tracking and transferring the value of artifacts on a ledger, attestations serve as witness messages, or more aptly, proofs, intended to validate assertions.
At EthSign, we eagerly anticipate the innovative applications that will arise from Sign Protocol, effectively addressing tasks traditionally handled inefficiently by tokens like NFTs. This advancement promises to elevate the current state of blockchain-based ledger ecosystems, reinforcing them with verifiable trust.
