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Blockchain, Featured, Technology

Web 3.0 Reputation: Challenges and Potential Solutions

The Web 3.0 landscape is witnessing innovations at lightning speed, often brought forward by pseudonymous or anonymous personalities willing to keep their actual identity private. This trend draws inspiration directly from Bitcoin founder Satoshi Nakamoto, who chose to remain anonymous throughout his life. The current proliferation of Web 3.0 apps often comprises such anonymous contributions, and it is necessary to establish a reputation system for verifying the accuracy of these applications prior to integration across existing structures. 

Should Reputation Matter in Web 3.0? 

The widespread adoption of decentralization across has brought forward a new problem- there needs to be a solution that pulls forward a system to verify the reputation of other contributors to the ecosystem. 

An enterprise or entrepreneur planning opting to begin a DeFi project will seek out an app pertaining to their own requirements. The investor will obviously be more willing to acquire the services or allocate necessary resources to a project which provides assurance, instilling trust and anonymity. Reputation management systems are thus vital in the blockchain-powered Web 3.0 eco-space.

Another illustration may include the act of buying products or services from a Web 3.0-enabled peer-to-peer marketplace. It is necessary to confirm that the seller has a reputation for delivering the product agreed upon, at the right position and at the right time. 

Also Read: South Korea is Soon to Regulate Security Tokens

How Decentralized Identities Work?

The concept of decentralized digital identities still remains at a nascent stage. In the near future, cryptocurrencies have the potential to store more than NFTs and altcoins. It can act as a profile background for a person’s achievements- remaining visible all across the internet. However, they will feature the added benefit of control- users will always have control of their own data. 

Vitalik Buterin, the man behind Ethereum, described the practical approach to how decentralized identities could work while inaugurating proposals for soulbound NFTs, or SBTs. SBTs, according to Buterin, are feasible options for representing everything from college degrees to driving licenses. They are also a viable alternative to the existing protocol. 

The Proof-of-Attendance Protocol(POAP) NFTs can further establish the existence of a person in a particular event or conference. However, we need to keep in mind that NFTs are easily transferable assets, anyone could easily buy a token to falsify the records. On a positive note, newer innovations to prevent this from happening have arrived. 

Also Read: A Ripple Survey Shows 56% of Consumers Are Likely to Bargain With Merchants Receiving Crypto Payments

Some Things Remain Constant: Reputation Still Translates to Power

Modern Web 3.0 applications, such as HashCash’s reputation exchange, have established a reputation protocol. Projects working on establishing reputation often use a mechanism to reward achievements in an on-chain fashion, which can be accumulated by contributing to protocols, decentralized apps(DApps), or DAOs. They usually achieve this through the deployment of smart contracts, or minting NFTs. 

Conclusion

In the upcoming years, reputation-based Web 3.0 protocols will empower the entire crypto community- bridging together all aspects of life which you wish to share into a single profile. Detractors may argue that the same achievements have already been unlocked with social media platforms such as Facebook. However, do these platforms provide absolute control of your data? What if you do not wish to share your information with digital ad marketers? Control is essential, and this is why exactly why Web 3.0 will succeed on the modern internet.

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