Amazing things are built in Web3 – often by pseudonymous individuals who prefer to keep their real identities private.
In some ways this is liberating. It means that everyone can have the opportunity to get involved in a project and deliver value to the community, regardless of their background.
But as decentralized identities spread, there’s one problem that can’t be ignored: making sure there’s an easy way for us to verify the reputation of others.
This is important… for many reasons. If you’re about to use a DeFi project created by someone with a pseudonym, you’ll want a way to know if they’re trustworthy and trustworthy.
When you read an article that someone has written online, there must be a way to check that their previous works are truthful and well received.
And if you’re buying an item from a fellow user on a peer-to-peer marketplace, it’s critical to check that they’re delivering what you’ve asked for — and on time.
All this has made the reputation in Web3 a hot-button topic. Now multiple crypto enthusiasts are exploring this concept in great detail – giving us proof that we should trust other people without knowing their name and background.
This can be a refreshing antidote to the status quo, where not everything we see online can be believed. False testimonials for products are a long-standing problem, while bots on Twitter can distort the reality and our perception of people and companies. We’ve even seen experiments where fake restaurants shot to the top of TripAdvisor rankings.
Understanding decentralized identities
DIDs as a concept are still at an early stage. But one day, your crypto wallet could store a lot more than altcoins and NFTs. Instead, they can be a rich background of what you’ve accomplished – open for all to see. And while the profiles some of us carefully cultivate on Facebook and LinkedIn are centralized, we would see complete control over all of our data.
Ethereum co-founder Vitalik Buterin recently explained how this might work in practice when he unveiled proposals for “soulbound” NFTs. Known as SBTs, he paints a picture of how these digital assets can be used to represent everything from a college degree to a driver’s license — even offering a modern alternative to credit scores.
Buterin pointed to a proof-of-attendance protocol as an example of technology that could also show promise. POAP NFTs can be used to show that someone was present at a particular event, such as a conference or concert. While this could have a plethora of exciting use cases in the future, there’s one issue that needs to be addressed: since NFTs are easy to transfer, someone could just buy a token that says they’ve accomplished something – but products are coming up the market to prevent this.
As we find ways to dutifully capture the achievements and attributes that shape our reputation online, Buterin argues that a non-transferable type of NFT needs to be created – and this could also lead to tangible improvements in how governance is achieved in decentralized environments. autonomous organizations.
Moving away from the technical limitations, you may be wondering why digital reputations are necessary at all. Well, a big motivation relates to how our data is currently fragmented across a number of social networks and websites – and it’s hard to transfer from one place to another. If you got five stars on eBay after you sold 50,000 items, this great reputation can’t easily be transferred to Etsy.
Reputation is power
Metis is one of the projects that focuses on these challenges. The platform has established reputational power, which is earned through chain performance. Users can build RP by contributing to protocols, DApps, and decentralized autonomous businesses – be it deploying smart contracts or generating NFTs.
In the coming years, his vision is to create an environment where someone’s reputation can be easily viewed on just one profile – bringing together all aspects of life, from your loved ones and co-workers to the friends you share hobbies with. It’s the ultimate way to show your credibility, commitment and trustworthiness, as well as the contribution you’ve made to the charities you care about.
The project told TBEN:
“Reputation Power from Metis is a portable and configurable reputation, unique to users’ specific performance and chain history. Reputation Power (or RP) can be accumulated by users performing on-chain actions, such as interacting with smart contracts or voting in governance.”
$100 million was recently set up to help cultivate projects that want to build on top of Metis — including DeFi protocols, NFT collections, metaverse platforms, and games. And this can be attractive to developers, not least because this platform has some of the lowest costs of any layer-two blockchain – making microtransactions affordable.
At the heart of this ecosystem is a “solid, scalable, low-cost and decentralized” technical infrastructure called Smart Layer 2 – a secure environment that can handle growing user demand, with the robustness that the web3 economy deserves.
There’s so much to be excited about – and enough work to ensure reputational power becomes valuable to businesses and consumers alike.
The focus remains on mass adoption and creating infrastructure that will be used for generations to come.
As the project recently said, “Although the market is turning bearish, the builders must never stop!”
indemnification. TBEN does not endorse any content or product on this page. While we strive to provide you with all the important information we may obtain, readers should do their own research before taking any action regarding the Company and taking full responsibility for their decisions, nor should this article be considered investment advice.