Security is a fragile and sensitive issue, and Web3 space is not an exception. How to detect that a user is not real, and it’s just a bot? How to define if a person is really interested in the project or not? Web3 is a rapidly growing and evolving space and we’re immersing ourselves there and expanding our interactions day by day. Do we need some kind of coordination in a Decentralized Society? No doubt. As we become a part of this Web3 landscape we want to know with whom we interact and whether we can trust this person or not. We also need some protection, as the number of bots and cyber-attacks is declining but the problem stays. Deeper transparency is also necessary even when we’re talking about DeFi. This point was mentioned in the article by Vitalik Buterin, an Ethereum co-founder.
This article aims to delve into the topic and discover why this trend has occurred and where it’s going next. We will also go through the platforms that took up Web3 Score practice.
Current Reputation System: Drawbacks
The most crucial moment to mention — our physical and digital lives are still linked together, and online reputation is an essential thing. Once we’re on a blockchain, we become nothing but our wallet address. The digital identity and data are locked within platforms.
The second moment here is how cheap it is to create a brand-new online identity. Anyone can create new accounts for no cost, it could easily be a ‘signifying nothing’ behind a name or a pseudonym. The fake reviews economy is blooming. Developers and users buy positive and negative reviews for themselves or their competitors to impact their online reputations.
The third thing that comes into mind is interoperability. Open data is vital when creating connections and having a business. That’s rather evident that you’ll deal with people you trust than those who are hiding in the dark.
Web3 Reputation Score: What Does It Solve?
Although some seasoned Web3 habitants aren’t that positive about implementing a reputation score, there are indisputable advantages to having it. Let’s look at them closer.
Self-ownership — users own their online identity and reputation. Web3 platforms do not lock their data, and they are the only ones with access to their wallet and all proof of their identity and past actions.
Interoperability — users can move their data into other systems and platforms. On Web3, anyone could bring their audience or content from one platform to another.
Highlighting authenticity — users and communities will partner with those who have a high reputation score. Thus, a reputation score will incentivize everyone to create more value and help each other.
Governance distribution – Today, we mostly use users' number of tokens to give voting power. In the future, it could be directly your reputation score that serves to determine your voting power. It won't be enough to buy a lot of tokens. You'll have to prove your value to gain voting power.
Building trust — With a life-long reputation, users will be more likely to play the infinite game, where the objective is not to win but to keep playing. As everything is on-chain, users will be incentivized to do good, ultimately resulting in more trust.
Incentivize and inspire — Users will be incentivized to help each other without fearing losing their reputation when joining new communities or projects. Someone with a high reputation score will be able to join new projects and prove their past experiences and capabilities right away.
Projects That Solve the Reputation Issue
The Gitcoin platform was introduced in November 2017 to promote cooperation on open-source software. Achieves this by providing grants and incentive payments to developers to encourage them to take on development initiatives.
Gitcoin is a blockchain-based platform for projects, independent builders, and funders to connect and work together on open-source software.
Gitcoin was developed to assist in compensating developers who want to add to significant open-source software applications. Because open-source software is by definition free and open, many developers who work on it do so with little to no direct compensation.
What Is a Gitcoin Passport?
A Gitcoin passport is a decentralized credentials record to take charge of your online identity. It provides you with:
access to the most reliable web3 experiences and increases your ability to profit from systems like Gitcoin Grants by gathering "stamps" of verification for your identity and online image;
you will have more chances to vote and participate online as you verify your identity more frequently.
How Does Gitcoin Passport Work?
With Passport, you can quickly establish your humanity and create a virtual identity. You only reveal what you want at each stage, too.
We refer to these as "stamps," and they include web2 and web3 online identifiers like Twitter, Google, BrightID, and Proof of Humanity. Passport's platform aggregates all of these stamps to create your individual identity number. Connected applications like Gitcoin Grants use this number to verify your online persona.
The more stamps you can validate, the better; the higher your score, the better. The best aspect is that as you verify more stamps, you raise the (forgery) bar, making the system more robust for all others.
Passport is the identity solution you need to access the best and most reliable web3 experiences, and it is already on its way to becoming the standard for projects to secure their communities.
Have you ever been curious about your status in Web3? Well, Galxe Web3 Score can tell you that and much more. It’s the FICO of Web3.
Galxe Web3 Score covers the following parameters:
Experience — This shows the age and history of your wallet and Galxe ID.
Fame — This reveals your social influence. The more active you are on your social media accounts, the higher level of Fame you will get.
Expertise — This reflects your interests and activities on Galxe. To improve your score, participate in more campaigns.
Asset — This indicates your on-chain assets. Hold blue chip NFTs and tokens to improve this score.
Humanity — This displays how likely you are to be a human. Get active on-chain, prove your social impact, show your wealth, and pass face recognition to improve this score. Trusta will be the data provider for this score calculation to help ensure accuracy and reliability.
As demonstrated above, the Galxe Web3 Score represents an exclusive indicator of your entire Web3 journey, measuring your social media engagement, on-chain actions, and portfolio management. Galxe Web3 Score is not only your digital reputation, but it’s also a unique Soulbound NFT showcasing your Web3 identity in dynamic.
Web3 gathers its data and here an inevitable question arises (or even several questions) – what to do with all those transactions, participation in DAOs, NFTs we own, participation in airdrops, and contributing to certain projects and ecosystems? Does it mean anything? Could it be valuable and useful?
Nomis addresses the issue by launching an identity protocol. The main goal here is to leverage your on-chain reputation and get a personalized Web3 experience. Nomis empowers everyone to build a strong reputation in the Web3 space. The transparency of blockchain allows this reputation to open up multiple possibilities and broaden the horizons as it works in the real world.
How Does Nomis Work?
Nomis looks over 30 parameters. It has a math model behind it that could be adjusted to the needs and priorities of any Web3 project. So, the weights of parameters counted by the Nomis Protocol could change from project to project. By doing this, a unique architecture could be provided.
It’s worth mentioning that the Nomis score is flexible and the final combination depending on the project is always integral. The high value of one particular parameter doesn’t necessarily get a user a high final score.
Besides, the correlation between parameters isn’t linear. Thus an increase in one parameter (e.g. few more NFTs bought or a contract deployed) doesn’t lead to an increase in the final score.
Once you have a lower score than required, it’s not a marker of your bad intentions. It just means that the on-chain data doesn't provide enough reason to assign a higher score in this architecture of parameters. Actually, the same data could provide one score value to decide if a wallet can get an undercollateralized loan, and a completely different score value if we are assessing eligibility for an airdrop.
Being an active, involved Web3 user is key. The more on-chain records of your activity in different web3 areas such as DeFi, NFT, DAOs, and SocialFi you have, the stronger your reputation is.
Nomis x Notum
It is pioneering the reputation layer for web3, evaluating your wallet and assigning a score as well as providing an opportunity to leverage your onchain reputation.
As for Notum, we always keep an eye on interesting features that can be beneficial for our users, so we’ve integrated Nomis scoring right into Notum. For your comfort, the score will be just next to your wallet balance.
Source: Notum App
Another great thing that we’ve prepared for you — is a custom Notum x Nomis NFTs you’ll find in the ‘Events’ section. To claim one, you need to get a Multichain Score SBT (Soulbound Token) from Nomis. The higher your score, the more lucrative your NFT becomes. Follow the link and get your SBT right away!
That’s still not the end. The Multichain Score SBT holders will gain special roles in our Discord, tailored to their scores. You can get those roles through our Guild by clicking the link.
The reputation score is an attempt at establishing trust for creators, making the whole Web3 landscape more secure and trustable. By having a verified identity, Web3 citizens will be more confident about the value they are creating with their community and the reputation they are building across the platforms.
That’s quite evident that if we want to build a Web3 society where community wallet recovery, Sybil-free governance, advanced decentralization mechanisms, and new markets with decomposable, shared rights are possible, we have to think of ways to resist and Web3 reputation score sounds like a decent plan.
Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.