Proof of Social Reputation (PoSR)

TL:dr; Humans strive to uphold their social reputation in both online and offline settings. Platforms like Twitter leverage it through the blue tick. This article attempts to explore the benefits of integrating social reputations into blockchain. It highlights how the bridging of reputations from Web2 to Web3 world can enhance trust and credibility in the decentralized world, and open doors for the next generation of innovative applications. This thought-experiment is called “Proof of Social Reputation (PoSR)”.

 

Blockchain technology has revolutionized various industries by providing a secure and decentralized method of recording transactions and data. One of the key goals of blockchain is to create a decentralized society. Therefore, it tries to integrate the human element into the digital realm.

At its core, blockchain technology mimics the fundamental principles of human society.

In the context of consensus mechanisms, blockchain has two well-known methods: Proof of Work (PoW) and Proof of Stake (PoS), both mimicking aspects of human society.

Proof of Work (PoW)

Proof of Work is akin to individuals performing tasks and earning income in society. In PoW-based blockchains, miners compete to solve complex mathematical puzzles, expending computational power and energy in the process. The miner who successfully solves the puzzle gets the right to add the next block to the blockchain and is rewarded with cryptocurrency. This process mirrors the real-world scenario where people work diligently to earn their livelihoods.

Proof of Stake (PoS)

Proof of Stake, on the other hand, resembles individuals investing their money to earn interest. In PoS-based blockchains, validators are chosen to create new blocks based on the number of coins they “stake” or lock in the network. Participants with a larger stake have a higher chance of being selected to validate transactions and receive rewards. This mechanism aligns with how people invest their funds to generate passive income.

However, there is a third aspect, equally crucial, that drives individuals to act responsibly within their social circles — their reputation. In this article, we will delve into the concept of Proof of Social Reputation and explore its relevance in the world of blockchain.

Reputation: An Essential Element in Social Circles

Beyond financial incentives, another reason people strive to act responsibly in society is to maintain their reputation. Reputation is a valuable asset that influences how others perceive and trust an individual.

People often go to great lengths to protect their reputation, as it impacts their relationships, opportunities, and overall standing within the community.

For example, social media influencers and content creators work hard to maintain a positive image and reputation within their communities, which affects their financial earnings as well. Similarly, a scientist would work hard to publish the right facts in a research paper to protect his reputation, which would ultimately lead to better professional opportunities.

 

Bringing reputation to the blockchain

Given the significance of reputation in real-world interactions, integrating it into blockchain technology is crucial for fostering trust and credibility within decentralized networks. By bringing social reputations into the web3 world, we not only allow people to form complex relationships akin to the real world but also allow the development of use cases where human reputations are crucial.

 

Twitter’s verification system, symbolized by the blue tick, offers an analogy for understanding Proof of Social Reputation. The blue tick represents a verified account, indicating that the user’s identity has been authenticated by Twitter. In a way, the entire reputation of the account owner across all media is encompassed in this blue tick. In the context of blockchain, this verification could encompass an individual’s reputation derived from various web2 online sources and interactions within the network.

Web2 to Web3 Reputation Bridge

PoPR can be implemented by leveraging existing web2 social validation and reputation systems like LinkedIn profiles, Github accounts, Google reviews, etc. Such a reputation bridge can also smart contracts in leveraging existing reputations from the web2 world and realize interesting use cases like decentralized mortgage lending, decentralized gig economy platforms, and so on.

Composability of reputations

One of the key problems with reputations in the web2 world is that they exist only within a closed system. The recommendations on your LinkedIn profile cannot be integrated into your medium account to provide credibility. Similarly, your GitHub commits cannot be directly reflected on your LinkedIn profile. However, the web2 to web3 reputation bridge can give rise to a composable system where various web2 and web3 reputation sources could be combined to make unique use cases possible.

The reputations scattered across the internet can be composed by the web2 to web3 reputation bridge

Conclusion

As blockchain technology continues to evolve, incorporating human dynamics, such as reputation, becomes essential to enhance the reliability and trustworthiness of decentralized networks. By introducing Proof of Social Reputation, blockchain platforms can foster responsible behavior, encourage positive contributions, and strengthen the bonds between participants in the digital ecosystem. As we move towards a more inclusive and decentralized future, integrating the human element through reputation mechanisms will be a crucial step in realizing the full potential of blockchain technology and give rise to the next generation of decentralized use cases.