The crypto market is notoriously known for its lack of transparency and the continuous occurrence of scams. But what if an individual's or organization's reputation was recorded on the blockchain in a public and transparent manner? Ethos Network – a new decentralized platform – is trying to make this a reality.
The Problem with Crypto: Trust is Always in Crisis
Scams, rug pulls, and fraudulent behaviors have always been a major issue in the crypto space. Many projects raise funds and then disappear, KOLs "shill" projects without accountability, and investors often lack tools to assess who is trustworthy.
Trevor Thompson (also known as Serpin Taxt) and Ben Walther, the two founders of #EthosNetwork , want to change that. After witnessing too many scams in the market, they realized that crypto needs a transparent and reliable reputation evaluation mechanism to weed out bad actors and raise standards in the industry.
"I used to trade crypto a lot and witnessed scams and fraud becoming increasingly common," Thompson shared. "I realized this was an opportunity to change that."
How Does Ethos Network Work?
Launching in January 2024, Ethos Network aims to build a "proof of credibility" system by putting users' reputations on the blockchain.
Users can "vouch" for others by staking a certain amount on their reputation.
Those with high credibility will receive a "credibility score", similar to a credit score but for the crypto space.
If someone is found to be fraudulent or behaves dishonestly, the system can deduct their reputation points through a "slashing" mechanism – similar to how Proof-of-Stake blockchains operate.
Difference Compared to Friend.tech
Thompson was previously involved in the Friend.tech platform, which allows users to buy and sell "keys" of #Twitter accounts. However, Friend.tech only focuses on trading identities, without addressing the need for building trust and reputation.
"Friend.tech has never tried to address the issue of reputation, but it is a first suggestion," Thompson said. "I think if we can link on-chain behavior to someone's real identity and record that on the blockchain, it will change how people trust each other in crypto."
Could Ethos Become the "Yelp" for Crypto?
Some have compared Ethos to Rate My Professors or Yelp – review platforms for teachers or businesses. Thompson agrees with this comparison but believes Ethos has a broader significance.
"When you buy something or look for a doctor, you always check their reviews and reputation. In crypto, we are also dealing with independent individuals, so why not have a similar rating system?"
However, Ethos also faces challenges:
The risk of a "circle jerk" – where users only vouch for each other to artificially inflate reputation scores.
The potential for system abuse – "mafia" groups could emerge to monopolize reputation.
To address these risks, Ethos implements a slashing mechanism:
If someone is found to be fraudulent, the community can propose to deduct their reputation points.
If a majority of users agree, that person's reputation will be reduced, and the reporter will receive a reward.
The Development Potential and Future of Ethos
Currently, Ethos only has about 1,000 users and is still in a testing phase with an invite-only mode. The development team wants sustainable growth, avoiding the situation many previous Web3 projects faced where they attracted a large user base but couldn't retain them.
One feature that Ethos is researching is anonymous reviews using Zero-Knowledge (ZK) technology. This allows users to leave honest reviews without fear of retribution.
Not Just Limited to Crypto
While Ethos is currently focused on the crypto space, their long-term vision is to bring this reputation system to the real world.
"Imagine being able to carry your reputation from crypto to other platforms – from hiring freelancers to peer-to-peer trading," Thompson shared. "That is the future we are building."
Will Ethos Launch a Token?
A big question arises: will Ethos launch its own token? Thompson did not provide a clear answer but revealed that they are researching a reward mechanism for users.
"Our XP system is designed to help determine the best way to reward users in the future," Thompson said.
Conclusion: On-Chain Reputation – A New Trend in Crypto?
Trust has always been a major issue in crypto, and Ethos Network is betting on turning reputation into a real, measurable, and tradable asset on the blockchain.
In a market rife with scams and where transparency is always a big question mark, can Ethos become the new standard for reputation assessment in Web3? Let's wait and see! 🚀
