Digital Word of Mouth: How Blockchain Reputation System Would Work

By August 4, 2016Bitcoin Business

In a world dominated by government regulations, every aspect of life has an agency assigned to watch over its continuing success. Theft, fraud, and bankruptcy are all dealt with through the appropriate criminal and civil courts.

Food and workplace safety have their respective permits and bureaucratic agencies watching over them, and the violent, substance abusers, and the criminally negligent have a court system to contend with.

However, such antiquated structures still leave much to be desired, as they can imprison the innocent, neglect the guilty, and miss important information that is highly pertinent to safety. In short, legal structures, and their regulatory bodies, leave much to be desired in safeguarding a populace from harm. Word of mouth reigns supreme in the non-governmental world

However, in certain areas, the legal systems provided are either undesirable, or inapplicable, to a degree where the local community finds alternative methods of maintaining the social order and protecting against undesirables.

The method? Word of mouth, tried and true, as old as human communication. Without a system in place to judge an individual’s trustworthiness, the community decides this through a distributed network of orally-transmitted bits of information who is safe to do business with and who is not.

“That guy’s bad news, don’t give him your money” gets passed around, and those with similar experiences verify the reputation, while “Oh no she’s solid, she worked with my cousin and did a great job” calms one’s uneasiness when forming a new business relationship.

The more corroborations each story gets, especially by trusted community members, the more solidly they remain in place, while gossip by the local town hater is unlikely to be taken seriously. A simple blockchain reputation system

Building a reputation system facilitated by a public distributed ledger would be possible using a simple, Bitcoin-like solution. The system would allow […]

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