GOAT to Mainnet: #2 Why do we need on-chain reputation?

May 3rd, 2024

Cryptocurrency Scams: A Global Concern

Cryptocurrency, despite its potential, is unfortunately rife with scams and fraud. Quick profits and blockchain anonymity attract scammers, leading to significant losses, from the $320 million Wormhole cyber attack to over $1 billion stolen since 2021. These scams are a global issue, exemplified by a 23% rise in the UK in 2023 alone.

The rise of cryptocurrencies has created opportunities for bad actors to exploit unsuspecting investors. The decentralized nature of these currencies complicates efforts to track down the perpetrators. However, the future of the cryptocurrency and Web3 market remains promising. Despite concerns about scams, it's crucial to recognize the potential of this technology to revolutionize online interactions and transactions.

The key to mitigating these risks lies in enhancing the on-chain reputation system. Improvements in transparency, real-time updates, security, accountability for bad actors, and incentives for trust validation are essential. Such changes will benefit all users by establishing a safer and more transparent online environment, fostering a trustworthy community, and encouraging sustainable growth.

Navigating the Cryptocurrency space safely with Goat.Tech

In the wake of increasing scams in the cryptocurrency space, Goat.Tech offers the first gamified on-chain reputation protocol with a sense of security, akin to a credit rating. Beyond a dApp, Goat.Tech aims to be an on-chain reputation infrastructure on EigenLayer with a mission to secure Web3 and foster its growth. The platform is designed to deter malicious actors and reward those who establish and uphold a commendable reputation:

Goat.Tech aims to overcome limitations of existing Trust Score systems to build Trust in Web3

Decentralized, verifiable algorithms: algorithms are simplified enough to execute fully on-chain in a decentralized manner so that anyone can verify.

On-chain validation of off-chain data: one’s trust score can be socially and actively validated by other entities; in particular, off-chain actions can be submitted for on-chain voting.

Trust secured by real funds: users can lock-stake funds to earn, and validate trust; trust is secured by their current and future earnings, which can be slashed/challenged if their wrongdoings are submitted and voted against. (inspired by mechanism of users restaking ETH on EigenLayer to secure AVSs while being subject to slashing conditions)

“Challenge period” to dispute trust: high trust scores are not permanent; anyone can be challenged and subject to community voting; validated wrongdoings result in earnings being slashed and trust score reduced. (inspired by the fraud-proving mechanism of optimistic roll-ups where participants can dispute a transaction’s validity)

Gamified trust incentive system: different types of rewards incentivize all participants.

Introducing Trust Score - Goat.Tech’s a transparent and verifiable reputation system

A key component of our approach is our transparent and verifiable reputation system called “Trust Score”. This system is the foundation of every Goat.Tech feature and interaction, designed to be dynamic and responsive, adjusting to the behavior of users over time.

Goat.Tech’s Trust Score is a transparent and verifiable reputation system

Technically, Onchain Reputation (Trust Score) is the balance of a soulbound token - this data can be fed onchain by any Dapp on the same chain, or transmitted through cross-chain messaging protocols to any chain, even non-EVM chains like Solana.

Trust Score data can be fed onchain by any Dapp on the same chain or transmitted through cross-chain messaging protocols to any chain

As a dynamic flywheel, Trust Score forms a cycle: the higher Trust Score you get, the more $GOAT token you generate for people who stake in your pool, attracting more people to stake in your pool, generating instant earning for you, increasing your Trust Score, and so on.

High trust scores are not permanent. If you withdraw ETH earnings, your Trust Score temporarily decreases, reducing $GOAT token you generate for your pool's stakers. Moreover, anyone can be challenged and subject to community voting; validated wrongdoings result in earnings being slashed and trust score reduced.

This virtuous cycle fosters a transparent and secure environment, remains fair and accurate, reflecting the true reputation and credibility of each participant in our ecosystem. Goat.Tech aspires to make Trust Score the standard, transforming the blockchain into a more trustworthy space.

Trust Score is beyond an on-chain Reputation measure; it's socially validated, gamified, on-chain, dynamic, yield-bearing, and decentralized. It's influenced by others, offers rewards, can be used by any Dapp for user assessment, self-adjusts to reflect real-life liquidity, allows earning ETH through staking, and is not dependent on centralized algorithms.

Benefits of high Trust Score for Web3 KOLs and everyday Web3 users

As a transparent and verifiable reputation system, Goat.Tech's Trust Score offers significant benefits to both Key Opinion Leaders (KOLs) and everyday users:

For Web3 KOLs:

Distinguishing Factor: KOLs can set themselves apart in the Web3 world, attracting top-tier investors, customers, followers, partners, deals, hires, and more.
Community Building: Goat.Tech's platform helps KOLs build loyal communities and strengthen their influence in the Web3 landscape. A high Trust Score establishes credibility and attracts a substantial following.
Monetization and Income Generation: A higher Trust Score directly correlates with increased income potential, incentivizing KOLs to maintain authenticity and reliability. Their reputation becomes their most valuable asset.

For Everyday Web3 Users:

Access to Privileges: Users with higher Trust Scores get access to VIP privileges on Web3 platforms. These privileges include increased airdrops and IDO allocations, reduced vesting time, lower loan interests, and higher social status.
Enhanced Reputation: A Trust Score acts as a badge of trustworthiness and reliability, boosting the user's reputation within the crypto community and beyond.
Improved Opportunities: Users with high Trust Scores are more likely to receive exclusive opportunities within the Web3 ecosystem.

For the Web3 Ecosystem:

Security and Trust: Goat.Tech enhances the security and transparance of the Web3 ecosystem and builds trust among participants by providing a Trust Score for every user.

Based on others’ Trust Score:

Web3 Founders can classify/target users, investors, partners, and KOLs, acquire qualified users, and enhance community/DAO governance.
Investors/Funds can vet project founders, evaluate protocol users, and identify emerging trends and opportunities.
Consumers can enhance their protection against scams and frauds, for example, by receiving a warning before sending to a risky address.

Promoting Positive Behavior: The system encourages users to behave positively and honestly, fostering a more cooperative and successful ecosystem.

Conclusion:

In conclusion, the rampant scams in the cryptocurrency realm highlight the necessity for inventive solutions like Goat.Tech's Trust Score. This transparent, verifiable reputation system combats scams and reimagines on-chain reputation. The Trust Score system allows users to stake ETH with each other to increase their Trust Score, and also subjects users to be "challenged" and have their Trust Score slashed by others if wrongdoing occurs, thereby enhancing the fairness and transparency about Reputation in the Web3 ecosystem.

The benefits of Trust Score go beyond establishing a reputation in the Web3 space. It assists Web3 KOLs in standing out, monetizing, and building communities. At the same time, it provides regular users with privileges, an improved reputation, and opportunities. Ultimately, Goat.Tech's Trust Score aims to transform the Web3 community by promoting trust and positive behavior, and improving blockchain security and reliability.

GOAT.Tech Updates:

Testnet Milestones:

We successfully launched the protocol on the Arb Testnet, gaining 46K users, along with a substantial amount of 212K ETH staked and 4,1K ETH & 7,9M GOAT harvested in just one month.

GOAT dApp Mainnet Updates:

The GOAT Mainnet Launch on Arbitrum will go live on May 13th, 2024.

Self-Stake with no fee, no risk, only profit;
Earn Mainnet Points early (convertible to $GOAT after TGE);
Attract early stakers and earn up to 5% of their staking volume;
Invite Code for referrals, earning 20% from F1 and 5% from F2;
Stake first in referred KOLs/whales to become their "Trustor" and earn 30% of their earnings.