Web3: Challenges and Solutions

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Building Reputation in Web3: Challenges and Solutions

Meta Description: Accomplishments occurred in building reputation in Web3- particularly by the pseudonymous who prefer to keep themselves private from the real world.

 

Currently, the control of the data is lacking, and it is isolated. However, with the struggle of months and years, the decentralized reputations and identities could change it.

Nowadays, everyone has a chance to participate in the project and deliver something that might add value to the community regardless of their background. It is liberating in some respects.

But as soon as the decentralized identities proliferate, there is a rising issue that can not be ignored: ensuring an easy way to verify the reputation of other individuals. Though it might seem a small issue, it matters for several reasons.

Primarily, when you enter a DeFi project created by any pseudonymous, you want to see the identity to ensure the project’s legitimacy. Not only to analyze its credibility but also to examine whether it is reliable or not.

These reasons have made building reputation in Web3 a hot topic these days. Various crypto experts are exploring this topic in detail to analyze the available options or create new ones. Moreover, it has given us the evidence to trust people without knowing their background and name.

Building Reputation in Web3 Challenges

Decentralized identifiers (DIDs) remain at an early age. However, it is said that one day, a crypto wallet could store far more than NFTs and altcoins. Instead, they can be a rich background of what you have achieved, which will open for all to see.

Whereas the profiles we cultivate on Linkedin and Facebook are centralized, we can see complete control of our data in the future.

Ethereum co-founder Vitalik Buterin recently disclosed how this could work in the future when he revealed the proposal for “soulbound” NFTs. He further clarified how digital assets could represent anything, whether a university degree or a driver’s license; he named them “SBTs.” He also added that these could provide a modern alternative to credit scores.

Buterin used an example of a proof-of-attendance protocol technology to show a promise. Furthermore, POAP NFTs can be helpful to indicate that someone was present at an event, like a concert or a conference.

Indeed, this could have a plethora of opportunities in the future; however, this comes with a problem that needs to be considered. Since NFTs can be conveniently transferred, anyone can buy a token and claim that they have achieved something. However, products hitting the market can prohibit this.

Since the authorities are obediently finding ways to record the attributes and achievements of the online reputations, Buterin demands the non-transferrable NFTs creation as this could help to improve the governance achieved by decentralized autonomous organizations.

Power of Reputation

“Metis” is one of the powerful projects focusing on facing these challenges. The platform has gained Reputation Power (RP) through on-chain achievements. Consumers can accrue RP by taking part in the protocols, decentralized autonomous companies, and DApps, whether using the minting NFTs or deploying smart contracts.

Bottom Line

There is much more in the industry to be excited about, and plenty of opportunities to explore to ensure building reputation in Web3 becomes accessible to consumers and businesses alike. With persistence and focus, builders can create an infrastructure that future generations can use.

 

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