This blog introduces 1ID Network, an onchain reputation platform with anonymity, built for Web3 users and legit projects, and driven by community. 1ID aims to bring better financial rewards to real users, efficient anti-Sybil tools and user segmentations to Web3 projects with scalability and cheap cost.
Sybils matter
According to The Block, the total value of all token airdrops until June 2024 reached a huge number $34B dollars. In the Coingecko report, the number was $26.6B by December 2023. These indicates that airdrop is an important marketing and community-building strategy, widely applied in crypto industry.
The surge of airdrop farmers (aka Sybils) have been a scourge for crypto projects. The farmers have harmed the organic users, health and sustainable growth of the projects. Unfortunately, detecting Sybil wallets is very challenging for Web3 companies. Hop Protocol, Arbitrum spent a huge expense for Nansen to classify Sybil clusters versus eligible wallets. Layerzero paid more to detect Sybils by Nansen’s analytics, self-report encouragement, and Sybil-hunting bounty. Unfortunately, real users were still angry at many airdrops (e.g. zkSync, Starknet, Layerzero), because their contribution were not appreciated fairly. Additionally, most Web3 projects are not affordable to hire Nansen for Sybil detection.
A cheap, scalable tool to detect Sybils and classify quality users is in urgent need, in response to ten-thousands of upcoming airdrops valued multi-billion dollars.
Why not use Proof-of-Personhood?
Anonymity is a fundamental property of blockchain systems. Identity verification (e.g. KYC) for airdrop-qualification undermine this core value (in fact, it wasn't considered in Hop, Arbitrum and Layerzero’s airdrops).
Onchain Reputation matters
Onchain Reputation is a key problem in Coinbase’s Request for Builders, which assigns a reputation score to each public address based on the graph of onchain transaction data. It is expected to be applied in loan-credit (like a decentralized FICO score), merchant ratings, fraud and Sybil prevention, airdrops to right persons.
In the wishlist of Q3.2024 hackathon, BNB Chain raised a critical need of anti-Sybil tools to distinguish genuine users from bots in the rapidly growing Web3Gamefi.
1ID leverages an innovative Onchain Reputation Ranking system, based on Google’s Pagerank, a trillion-dollar algorithm widely used in Web2. The Reputation Ranking Intuitions:
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The reputation score of a public address (or account) within a blockchain is derived from its Pagerank score, computed from its onchain transactions.
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More IN-transfers or Indegree (receiving value), then higher reputation score.
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IN-transfers from a high reputation account result in greater reputation score than receiving from a low reputation account.
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OUT-transfers or Outdegree (sending value) result in a lower reputation score.
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Considering age weight, value weight, diversity, etc: latest transactions are more meaningful than the old ones, greater priced value transactions are better.
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Preventing Sybil attack, manipulation, sinkage effect.
Onchain Reputation problem and adaptive Pagerank algorithms have been investigated since 2019, with 3 published research papers on ACM, IGI and IEEE, notable scientific journals of computer science and software. There are three meaningful use-cases of Onchain Reputation score validated by Arbitrum, Optimism and Layerzero airdrops:
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Classify eligible wallets with high accuracy (AUC 0.82)
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Forecast future user-value (captured 92.4% on Optimism, 74.8% on Arbitrum)
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Captured most Sybils (72% Sybil addresses of Layerzero airdrop)
Forecasting future user-value is very important. All marketing campaigns and airdrops are eventually to target high user-value generation in the future.
1ID game-changer
1ID Network aims to build a universal Onchain Reputation & Trustable ID, for community and driven by community. 1ID envisions onchain Reputation Trustable ID integrated in every corner of Web3: airdrops & whitelists, credit scoring & crypto lending protocols, social platforms, gaming apps, decentralized AI/ML agents, personalized recommendation systems and more.
1ID aims to help real users get more financial benefits from their reputation and personal profile onchain with anonymity. User’s reputation makes user’s money. 1ID also helps legit Web3 projects qualify right users, classify Sybils and bots, offers them user segmentation and user-value forecasting. 1ID’s tools are cheap, flexible and scalable for every projects in any sectors (e.g. DeFi, NFT, gamefi, meme, socialfi) of Web3 industry.
1ID airdrop platform
1ID develops an airdrop platform where Web3 clients and marketing agencies are freely to create airdrops, set criteria to qualify real users against Sybils and bots. On the other side, Web3 users connect their wallets actively onchain to get airdrops based on their comprehensive onchain reputation score and additional criteria. Furthermore, we are preparing incentive and retroactive programs with XPs to reward significant contributions from 1ID’s users and partners.
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Together, we beat Sybils and appreciate real users.