Bitcoin analysis is an attractive prospect to explore further over the coming years, as it will help provide valuable insights as to how people are using the digital currency. Some people will hold Bitcoin as a long-term investment whereas others use it as a regular currency to pay for goods and services. Riders is a new service that seeks to link some form of credit rating to Bitcoin addresses by using blockchain analysis.
Also read: Coinbase Trading Below Average Bitcoin Price Creates Arbitrage Opportunitiy Blockchain Analysis As A Reputation System
One of the things Bitcoin transactions seem to lack is a form of reputation system based on the information provided by the blockchain. Even though it is entirely possible to see a Bitcoin address’ history regarding sending and receiving funds, there is no indication how this money has been used. Not that that is a bad thing per se, but it would be helpful if this technology could be wielded to create a reputation system of some sorts.
The developer of Riders.io is working on a platform that will use blockchain analysis to create a credit rating system for Bitcoin users. Or to be more precise, Riders will act as a Bitcoin ranking engine by using blockchain analysis. Whether or not this platform will turn out to be the Standard & Poor’s of digital currency, remains to be seen, but it is an interesting concept for sure.
Since Bitcoin does not have “credit” in the traditional sense, it is impossible to create a credit rating system for the digital currency. But that does not mean there is no valuable big data to be extracted from the blockchain, as this public ledger can be quite helpful in established a financial reputation system of some sorts.
Keeping in mind how all Bitcoin […]
