Decentralized trust and reputation system
People ask me: “What is your main strength?”; “What is the tool that Monetha will use to revolutionize commerce?”;
And I always proudly shout: “DTRS”.
This acronym raises even more questions, but not for long. In not so distant future these 4 letters will be mandatory in global commerce. Let me tell you how it works and what are the benefits.
How it works?
I’m on a mission to combine commerce and trust using a Decentralized Trust and Reputation System (DTRS) powered by Ethereum smart contracts. It allows customers and merchants to rate each other and store vital information such as product warranties on the blockchain, meaning no one can alter it in any way. An inbuilt algorithm analyzes the quality of each transaction, assigns and adjusts each parties trust rating according to the actions taken. The history is then recorded onto the immutable Ethereum blockchain.
This system allows both parties to avoid and easily solve common problems, such as chargebacks; damaged goods; and scams — all of which can lead to lengthy and expensive resolution processes. By allowing merchants and customers to rate each other, and storing these ratings on the Ethereum blockchain, it also helps others make informed decisions when purchasing goods.
First of all, you will be able to see the trust rate of the merchant and reviews made by other clients in a merchant’s website (most likely in the footer of the website). That will allow you to decide if you want to buy from this merchant or not. The important thing to mention here is that the trust rate will only be adjusted by smart contracts only after a real purchase happens. Merchant will not be able to alter his trust rate in any way.
Second of all, when you pay with Ethereum based currency, all the details of the purchase will be saved on the blockchain. Based on those details, you will be able to file a claim, for example, if you are not happy with the product that has been delivered to you. If you file a claim and merchant does not react, smart contracts will automatically decrease the trust rate of his. Everything and anything to ensure high trust and high quality commerce.
There are many scenarios where DTRS will give a great benefit to both the merchants and the buyers. Here are my favorite ones:
- Trusting an unknown merchant.
There are so many good merchants, selling great items for a bargain, but they are not trusted because for many different reasons they don’t want to join a centralised marketplace like Ebay, Amazon, Etsy etc. We provide them with a tool to be trusted anywhere online. To understand it fully, think about this use case: imagine buying something from a merchant that is based in China and he is not a part of centralised marketplace like Alibaba. You have no guarantees at all about what product you will receive and if it is delivered at all. DTRS will empower him to build his reputation with no commitments to a centralised authority.
- Protecting the merchants from scammers.
A merchant using DTRS is minimizing the possibility for fraudulent transactions by seeing the buyer’s rating and recognizing his online commerce behavior.
- Transferable reputation.
Many merchants encounter this problem. Imagine you sell things on Ebay. You collect over 1000 reviews, all of them very positive, but your business on Ebay is going slower and you’d like to sell on Amazon. Guess what? There is no way to transfer your reputation even though you are reputable.
Not a problem for DTRS, since your reputation will be seen universally no matter on which independent store are you selling in.
4. Automatic transaction information enforcement.
All the information that is needed for commerce to happen will be transferred through smart contracts and ensured both parties receive necessary information and documents (for example warranty).
The future of global commerce
In very simple words, Monetha’s Decentralised Trust and Reputation System is here to make buyers safe and merchants reputable when participating in a global commerce.
And this is just the beginning of DTRS. Get used to seeing these 4 letters as you’ll encounter more and more merchants go “off the grid” and use this amazing technology.
In addition to that, the whole beauty of DTRS is, that it works only with confirmed transactions. Transactions that are fast and cheap. But that’s another story, another blog, for another time.
P.S. If you’re still confused about DTRS or want to know more about it, go ahead and join our Slack channel, where I answer all the questions that do arise.