The Web3 landscape is plagued by several trust-related challenges that undermine the reliability and effectiveness of existing trust scores. In 2023, the DeFi space saw almost $1 billion lost to exploits, hacks, and scams, with notable incidents affecting major platforms like Euler Finance, which lost $197 million, and Multichain, which faced a $231 million exploit (Nasdaq) (Cointelegraph) (De.Fi Platform). These incidents highlight the critical need for more secure and transparent trust mechanisms.
Goat.Tech addresses these issues with our innovative Onchain Scoring Infrastructure, ensuring transparency, real-time updates, security, accountability, and incentivization. This approach significantly enhances the reliability and effectiveness of trust scores, fostering a safer and more prosperous Web3 environment.
Why Trust Score First?
Safety and prosperity in Web3 are hindered by bad actors who lack or abuse reputation. Trust scores are foundational for blockchain credibility, underpinning all activities and interactions. Establishing a reliable trust system is critical before expanding into other blockchain functionalities to ensure security and integrity.
Goat.Tech presents a transformative vision with our Onchain Scoring Infrastructure, aiming to redefine the Web3 Finance landscape. This infrastructure is not just theoretical; it is set to significantly enhance Web3 activities and boost Total Value Locked (TVL), thereby exerting a profound influence on the Web3 finance ecosystem.
Low Trust in Web3: The Challenges of Current Trust Scores
Current trust scores often suffer from centralization, lack of transparency, and outdated data, making them unsuitable for the dynamic nature of blockchain. These limitations can lead to abuse, fraud, and a general lack of accountability, undermining the trust in Web3. Specifically, the challenges include:
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Centralized and opaque algorithms: Most trust scores are calculated off-chain using proprietary algorithms that are not transparent. This centralization means users cannot verify how scores are computed, which leads to a lack of trust in the scores themselves. The opaque nature of these algorithms makes it difficult to assess their fairness or accuracy.
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Not real-time: Trust scores based solely on historical on-chain data do not reflect current behavior. A user who was once reputable may engage in malicious activities without their trust score reflecting these changes promptly. This delay can result in reputation abuse or, in severe cases, exit scams.
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Unsecured trust: Trust scores based only on data lack security mechanisms. If a score is found to be incorrect or manipulated, there are no immediate repercussions for the inaccuracy. This lack of security undermines the reliability of the trust scores.
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No consequences for bad actors: Existing trust score systems do not have mechanisms to hold bad actors accountable. There is no systematic way to penalize users who abuse their reputation or engage in fraudulent activities. This absence of accountability allows malicious behavior to persist.
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Lack of incentives to validate trust: There are no incentives for users to actively validate trust scores. Without motivation to verify and maintain accurate scores, the system relies on passive data collection, which can be flawed or outdated. Additionally, there are no penalties for those who fail to validate trust correctly, further diminishing the reliability of the scores.
Goat.Tech’s Trust Score: A Comprehensive Solution.
Goat.Tech’s Trust Score is designed to make Web3 safe and prosperous. It ensures that bad actors are stopped, while those who build and maintain a good reputation are rewarded.
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Decentralized, verifiable algorithms: Goat.Tech’s Trust Score algorithms are fully decentralized and verifiable. By executing on-chain, these algorithms ensure transparency and allow anyone to assess and verify the computation process. This openness builds trust in the accuracy and fairness of the scores.
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On-Chain validation of off-chain data: Goat.Tech enables the submission of off-chain actions for on-chain voting. This hybrid approach ensures that trust scores are updated in real-time, reflecting current behaviors and actions. The community can validate off-chain data, ensuring that scores remain accurate and up-to-date.
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Trust secured by real funds: Trust scores on Goat.Tech are backed by current and future earnings, creating a financial stake in maintaining a good reputation. If wrongdoings are reported and verified through community voting, the funds can be slashed or challenged. This financial backing adds a layer of security to the trust scores, making them more reliable.
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Challenge period to dispute trust: Goat.Tech introduces a “challenge period” during which high trust scores can be disputed. Anyone in the community can challenge a score, triggering a voting process to verify the claim. This mechanism ensures that trust scores are not permanent and can be adjusted if necessary, holding users accountable for their actions.
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Gamified trust incentive system: To motivate active participation, Goat.Tech employs a gamified incentive system. Participants are rewarded for validating trust scores accurately and penalized for incorrect validations. This system encourages continuous engagement and ensures that trust scores remain robust and credible.
What is Goat.Tech Trust Score Based On?
Goat.Tech’s Trust Score is derived from several factors, ensuring a comprehensive and reliable measure of trustworthiness:
Existing Factors:
Staking Power: How much/long ETH is lock-staked in your Pool.
$GOAT Booster: How much/long $GOAT is locked-staked in your Pool.
Liquidity Index: Ratio of current ETH earnings to adjustable ATH.
Additional Future Factors:
Boosters: Credit Score, Degen Score, and third-party on-/off-chain data.
NFT Boosters: How many/how long/which NFTs are staked.
Token Boosters: How much/long an affiliated token is locked-staked in your Pool.
By integrating these factors, Goat.Tech’s Trust Score provides a robust and dynamic measure of user trustworthiness, encouraging positive behavior and enhancing the overall security and reliability of the Web3 ecosystem.
About Goat.Tech
Goat.Tech is a decentralized fund manager that optimizes yields and rates to help more people earn more, or borrow more at better rate. You can delegate assets to trusted people who strategize to maximize yields and share profit with you.
Innovations include Onchain Scoring System, 1-click Copy-yields, AI yield advisor, Future earning collateralization, and more.
Goat.Tech social media channels:
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