Both technologies have an issuer who creates the credential, a holder who owns and controls it, and a verifier who validates its authenticity and ownership. However, in the case of Soul-bound Tokens, the issuer could be a DAO (Decentralized Autonomous Organization), the verifier could be anyone who can utilize zero-knowledge proof, and the holder is simply an EOA (Externally Owned Account).
Verifiable Credentials are mainly used for verifying identity and credentials, while Soul-bound Tokens use NFT (non-fungible tokens) to demonstrate uniqueness and scarcity, which can be used for credential issuance and digital identity.
When it comes to security, Verifiable Credentials use cryptographic signatures to ensure authenticity and tamper-proofing, while Soul-bound Tokens use NFTs to achieve the same result.
Although Verifiable Credentials are associated with standards like the W3C's Verifiable Credentials specification, Soul-bound Tokens are still in the process of developing a standard specification (PS: Awesome Soulbound Tokens)
As blockchain technology continues to advance, solutions like Verifiable Credentials and Soul-bound Tokens will be crucial in enabling decentralized and self-sovereign identity. Understanding how they fit into the trust triangle is a vital step toward achieving a more secure and equitable digital future.