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Blockchain Reputation Management

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Many people don’t realize there is enormous demand for legal forms of ID. This is especially true for people living in developing areas where access to identification is difficult or near impossible. Over 1 billion worldwide people do not have verifiable ID restricting their ability to apply to schools or college, open a bank account, apply for credit or loans, and to get healthcare or health insurance.

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Blockchain Reputation Management

  1. 1. BLOCKCHAIN REPUTATION MANAGEMENT
  2. 2. JOIN THE CONVERSATION ON TWITTER @BITBAYOFFICIAL
  3. 3. ABOUT BITBAY BitBay is a suite of free-to-use, multi-platform applications including the world’s first fully-functional Decentralized Marketplace.
  4. 4. Want to see everything our advanced client can do? VIEW ROADMAP
  5. 5. Many people don’t realize there is enormous demand for legal forms of ID. This is especially true for people living in developing areas where access to identification is difficult or near impossible. By year 2030 the World Bank Group and its partners aim to provide everyone on Earth with a legal ID as part of its ID4D (Identification for Development) initiative
  6. 6. This initiative is fueling the creation and implementation of digital ID systems primarily in areas where access to traditional ID is low, and blockchain technology is being examined as a network architecture for these systems.
  7. 7. HOW SHOULD REPUTATIONS BE RECORDED AND MANAGED? To grasp the various possibilities of creating a blockchain reputation management system it can be helpful to think of three questions that are to be addressed in the design process:
  8. 8. Where in the network will the data to create a blockchain reputation management system be stored? How frequently are the reputation calculations occuring? Which machines or nodes in the network are computing the reputation calculations? 1. 3. 2.
  9. 9. The numerous answers to these questions constitute what’s called blockchain reputation architecture.
  10. 10. WHERE TO STORE THE DATA? One possible storage location is in the blockchain itself. An advantages of this method is that it reduces computation from a users’ software or machine and instead the blockchain contains this data. Another place that blockchain reputation management data can potentially be stored is in a separate database, this is called “persistent reputation off-chain”. A third option is called “transient reputation”. This method computes reputation calculations without separate databases to integrate and with no data stored on the original blockchain.
  11. 11. WHICH NODES CALCULATE REPUTATION? Travelchain, a decentralized data exchange for the travel industry, plans to use the agencies off chain method to process evaluations of travel services. Another option is to have nodes running reputation software within the network or blockchain (agencies on-chain). This would require at least one node, but not all nodes, to execute the same reputation code and would require these nodes to be financially motivated to do so. The last option is one where block-creating code contains reputation calculations that all block-verifying nodes would be required to compute (reputation mining on-chain). This method touts the highest security and simplicity.
  12. 12. HOW FREQUENTLY IS REPUTATION CALCULATED? Reputation calculations are composed of complex algorithmic code and it takes time, energy, and processing power for computers to carry out this code. Any redundancy or inefficiency that can be removed during the design process improves blockchain system function. One option is to recalculate someone’s reputation whenever it’s been requested, this is called “complete recalculation”. A different solution would be to calculate reputation only once for a set period of time, called “periodic recalculation”.
  13. 13. Here at BitBay we store our reputation data separate from our main blockchain, the off-chain method of storage. This design choice strengthens the network as it prevents problems associated with blockchain bloat like data-heavy blockchain sizes and low transaction speeds.
  14. 14. Storing reputation data independent of our main blockchain benefits the network as a whole because the reputation data doesn’t slow down block verification thus preserving the speed of BitBay transactions.
  15. 15. A person’s reputation history is stored on their machine locally and is visible at the time they offer or enter a contract A reputation in BitBay’s system includes the number of successful contracts, the total number of contracts, and any reviews users have left.
  16. 16. The beauty of our reputation system is that it’s only part of how we discourage cheating. Our Double Deposit Escrow system (DDE) allows contract participants to remove any profitability from cheating by requiring both parties to submit a collateral deposit which can be set to any amount.
  17. 17. Our Market Client’s steganography feature opens the door to many different possibilities. You can quickly and discreetly send private information to friends or colleagues, and this feature also has the ability to extract and decrypt any files that are sent to you.
  18. 18. DECENTRALIZED NETWORKS TAKE DIFFERENT FORMS. SO WILL REPUTATION MANAGEMENT SYSTEMS. Storing personal information within similar decentralized network structures has benefits as well. In developing areas where the cost of getting credit is high, a person could be financially liberated if their digital reputation was used as substitute for a credit score or paystub.
  19. 19. Since decentralized networks are increasingly recognized as a powerful tool we are likely to witness the development of both anonymous reputation systems and centralized digital ID systems containing personal data.
  20. 20. The pro-decentralization community might be averse to any comparison with nations or other organizations, but each day cryptocurrencies and developing digital ID systems are testing similar underlying network technologies.
  21. 21. Click HERE to get started today. Have any questions? Ask HERE

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