Comparing Tech Solutions to Build WEB3 Era

Web3 Solutions

Web3 refers to a group of trends that comprise what is sometimes referred to as the “decentralized internet.” The goal is to create an internet that is not controlled by large corporations like Google and Facebook, which currently set most of the rules for what we can and cannot do online. Here’s a look at some of the solutions that will shape the Web3 Era’s future.

Decentralized Identity (DID)

Decentralized Identity allows individuals and organizations to generate their own identifiers by utilizing trusted systems. Entities can prove control over these new identifiers by authenticating them with cryptographic certificates, such as digital signatures. Several protocols deal with decentralized identity such as: Dock protocol, Sovrin Network, Veramo, Sero…

Decentralized Autonomous Organization (DAO)

A Decentralized Autonomous Organization (DAO) is defined by a smart contract and is based on transparent rules written in code. It is governed by its members and is not subject to a centralized authority. In this sector, Unicly is an example of a project that lets members purchase and store NFTs. People can vote for the NFT auction process with tokens from Unicly.

Reputation System In Web3

The concept of a decentralized, transferable reputation is widely undefined, although it is vital to realizing Web3’s promise.

Trust and reputation are the foundations of economic interactions based on NFTs and DAO governance. Use case implementation and widespread adoption will be a no-brainer once users, DAOs, and the Web3 community as a whole grasp how portable reputation is becoming a reality today.

One notable example in this sector is Reputation DAO. They open the black box of existing credit and reputation systems in DeFi and create a transparently governed system for secure, confident interactions in the DeFi economy.

Soulbound Token (SBT)

Soulbound Tokens (SBT) is a concept proposed in May 2022 by Ethereum cofounder — Vitalik Buterin and his colleagues. Soulbound tokens have some similarities and differences with NFT.

According to Binance: “Soulbound Tokens (SBTs) are digital identity tokens that represent the traits, features, and achievements that make up a person or entity.”

SBTs are permanent, non-transferable forms of NFTs, meaning that they can not be given away or taken from your private blockchain wallet. SBT is specific to an individual or entity and can serve as proof of an accomplishment, attribute, or affiliation.

Octan’s Solutions vs. Web3’s Solutions

Recently, one prominent project has started to create a tool for users to mint Soulbound Tokens and apply 4 major Web3 trends (DIDs, SBTs, Reputation, DAOs) into their solution.

OctanLabs are one of rare projects that combine Soulbound token with reputation ranking system (RRS) and reputation score.

RRS runs on multiple chains, captures user activities and behaviors via transaction history, provides a universal, comparative and quantitative measurement on reputation of accounts within communities and/or the entire space.

The reputation score highlights a person’s importance based on previous behavior and contributions.

This is the ideal solution to generate a solid Decentralized Identity for Web3 users by combining two important Web3 concepts: Soulbound token and Reputation Score.

With this solution, OctanLabs can help Web3 projects in qualifying good users and generating more value contributors for blockchain applications.

To attract new users, projects can, for example, establish a mini-campaign such as an airdrop or retroactive activities on the Octan network. Users that want to participate in these activities need to have a minimum reputation score. Users who have qualified through social tasks can get rewards from projects.

Next Milestones of OctanLabs

In November 2022, the OctanLabs team will allow users to free-minting SBTs to create their own Web3 identity. This is the first milestone of OctanLabs. The campaign will last forever so users of all multi-blockchain can create their own Web3 DIDs.

The minting page will be published on Octan’s website and be announced on Twitter.

In the next phase, the SBT will be extended to contain proof of the user’s verified credentials and social profile. The OctanLabs team shared that they have two approaches to the DID problem.

The first is applying chain proof associated with multiple social profiles and personal credentials (e.g. real names, birthday, nationality, emails, phone number, KYC, etc).

The latter will use a peer-to-peer endorsement methodology enhanced by the reputation system and without any centralized verifier.

Recently, Octan Network is a Web3 project that has won 2 big awards from the Octopus Accelerator Program (grant of $50,000 as a Star Prize Winner) and Dfinity Developer Program (grant of $25,000 prize) with the initiative to build a reputation ranking algorithm for users in the Web3 ecosystem, similar to how PageRank, the famous algorithm from Google works.