The identities riddle is, sometimes by design, emerging as a central distributed ledger question. As we move forward into the age of the Smart Contract, knowing whom we are contracting with is huge.
It also helps to know which off chain oracles/delegates/nodes are voting. Might as well add some insights into the correctness of the vote and data on past votes cast.
Knowing your counterparty becomes interesting in a trust-free environment with a high anonymous user count. The phrase “know” can mean many things. Whatever those might be, the box must be checked. Many contracts are contingent on off chain developments. This introduces issues surrounding the integrity and identity of these reporting groups and the reports. These may seem like operational concerns; unless we find robust solutions, these will be existential issues.
One way to solve a substantive subset of these issues is to use reputation and compensation in combination. We have seen a number of models articulated to achieve this. Some are using compensation for third parties that offer non-conflicted and simultaneous releases of information. Attention is also widely being paid to attempts to issue Crypto and have holders earn in specific currencies by performing “scalable” verification and identification. We welcome all of these approaches and think that they all offer unique and compelling possible paths forward. It is clear we need to find modern, scalable escrow and enforcement systems.
In these early days, the most compelling approaches are utilizing reputational scoring and compensation. The ability to achieve and maintain score matters to people as people and as income motivated agents. The ability to adjudicate meaningful contracts and be compensated at scale is dependent on the two great strengths of the distributed ledger community. The first strength is the energy level and growth of the community. The second is the organized and sizable community looking to earn Crypto as a means to make a living.
The last approach, to determine identity and accuracy involves affinity communities crowd sourcing answers to these essential elements of commerce in order to transact at low or no cost across the decentralized network(s) in question. These efforts have concentrated in the business-to-business space. For institutional users this is viable and offers enhanced control.
Different behavioral models underlie all of these approaches. The types of behavior you reward shapes and shifts what types of agents your platform attracts and holds.
iCash is building for process driven institutions that care about operational precision and need/want to add assurance to their Blockchain operations.