Manage reputation through blockchain

How to manage reputation through blockchain – Many people do not realize that there is a great demand for valid ID documents. This is especially true for people living in developing areas where it is difficult or almost impossible to obtain identification. There are more than 1 billion people worldwide without verifiable identities. Which limits their ability to apply to schools or universities. Open bank accounts, apply for credit or loans, and obtain healthcare or health insurance. 

By 2030, the goal of the World Bank Group and its partners is to provide for everyone. On the planet with valid identity documents as part of the ID4D (Development of Identity) program. The plan encourages the creation and implementation of digital ID systems. Especially in areas with low traditional ID visits, and blockchain technology is being studied as the network architecture of these systems. Digital recognition systems are also exploring where there are already recognition systems.

Digital identity systems are also evolving in different ways from organizations and countries. Cryptocurrency needs to be anonymous, but it is important to prevent bad behaviour, and it is very important to identify the bad actors. It is necessary to implement some kind of identification system in the situation without losing anonymity. 

Regarding cryptocurrency and blockchain, the science of designing an effective reputation system is a call blockchain reputation management.

Blockchain Manage Reputation

Some blockchains are very large and require a lot of additional data storage, which limits the ease and speed of users’ access to the network. Storing reputation data independently of the main blockchain will benefit the entire network because reputation data will not slow down the block verification speed, thereby maintaining transaction speed. 

A person’s reputation history is stored on their local machine and is visible when they provide or sign a contract. The reputation in the system includes the number of successful contracts, the total number of contracts, and comments left by users.

The protocol is a decentralized encrypted message system. Use strong authentication methods to prevent the identification of false message senders and passive eavesdropping from unsolicited third parties. This is a very secure system without central authority control. The protocol uses the latest reputation information and forwards this information to the requesting party.

Trust is very important in business and must be established and maintained throughout the transaction process. The blockchain reputation system and the dual deposit custody system currently work together to identify cheaters and eliminate the initiative to commit fraud. 

As decentralized networks are increasingly recognized as powerful tools, we are likely to witness the development of anonymous reputation systems and centralized digital ID systems that contain personal data. The community that supports decentralization may not like to make any comparisons with other countries or organizations, but every day emerging cryptocurrencies and digital ID systems are testing the same basic network technology.

How Blockchain Can Manage Reputation Somebody?

The many answers to these questions constitute the so-called blockchain reputation architecture. 

In order to understand the various possibilities of creating a blockchain reputation management system. It is helpful to think about the three questions that must answer during the design process:

  • Where will the data that make up the blockchain reputation management system store on the network?
  • WhichMachine or node computing reputation calculation?
  • How often does reputation calculation happen?

How Often is Reputation Calculate

If you can calculate a person’s reputation in the real world, does it make sense to re-evaluate every second? 

Although reputation is often monitoring, it is unlikely that a person’s reputation will change so significant in such a short period of time that it is impractical.

Reputation calculation is compose of complex algorithm codes, and computers need time, energy, and processing power to run these codes. Any redundancy or inefficiency that can eliminate during the design process can improve the hash function in blockchain system. 

One option is to recalculate a person’s reputation on every request. This is called a “full recalculation.” This calculation will include all variables that affect reputation within a specific time period. If this time period is too long, the calculation will become very expensive.

Which Node Calculates Reputation?

There are usually three options for node computing to manage reputation through blockchain. Applications running on the blockchain (off-chain institutions) will be the simplest and cheapest. Since this will rely on external systems, it will run faster, but it will bring more security risks. Since these nodes are separate from the parent blockchain, this also complicates the reward or payment system. 

Another option is to let the node be on the network or blockchain (running a reputation software proxy on the chain). This architecture will require at least one node, but not all nodes, to execute the same reputation code, and this node needs to economy motivate to do so. 

The last option is that the block generator code includes all block verification nodes (the must calculate mining reputation on the chain). This method provides the highest security and simplicity but introduces redundant elements similar to PoW mining, which means it has the highest calculation speed in the entire system. 

Where Is The Data Store?

Its size that the value of a network is determine. A decentralized network is expect to achieve high growth rates, and implementing a reputation management system to coordinate with they will generate a large amount of data that needs to store somewhere.

One of the possible storage locations within the blockchain system itself. The advantage of this method is that it reduces the calculations of the user’s software or machine, and instead. The blockchain contains data. Since the data is store on the blockchain, reputation calculations always remain accurate. However, this requires a larger and more expensive blockchain system.

Another place where blockchain reputation management data may store is in a separate database, which is a call “off-chain persistent reputation.” This approach also speeds up the startup time (as with on-chain solutions), but requires interoperability between the reputation ledger and the blockchain, which adds complexity and increases the required calculations.

The third option is a call “temporary reputation”. This method calculates reputation calculations. Without a separate database for integration, and no need to store data on the native blockchain. Blockchain software will only process reputation calculations during the startup process, significantly increasing startup time and reducing network convenience.

However, it is hoped that storing data in this way will be the easiest way to operate. It is also the cheapest pay at the beginning of the building.


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