Ethos Popular Science: Reshaping crypto trust with tokenized reputation

Author: Eli5DeFi

Compiled by: TechFlow

The cryptocurrency space is full of scammers and all kinds of suspicious behavior. @ethos_network is launched to distinguish between advantages and disadvantages by tokenizing reputation.

Here are the reasons why Ethos stands out🧵

Ethos 101

Ethos is in a sense a tokenized reputation platform that builds a trustless and verifiable system that represents the credibility of an account in the cryptosphere.

Ethos’ credibility ratings measure credibility based on community sentiment and public interactions from accounts like Twitter and ENS. A detailed breakdown can be seen in each Ethos profile, mainly including:

• Peer review
• Community vote on your profile
• Number of endorsements supported
• Reciprocal endorsement
• Ethereum staking on your reputation
• The age of your Twitter account
• The age of your Ethereum address

It should be noted that these ratings summarize user feedback and metrics, but are not absolute metrics of reputation or character, which are dynamic and may change over time.

To participate in Ethos, you must be invited by a registered member who has reached a certain rating, which adds a hierarchy of verifiable trust.

How to use Ethos

In Ethos, you get points and reputation scores by:

Review

In the review, you can review your peers by giving positive or negative reviews. You can also vote for or against other reviews.

guarantee

Endorsement is to staking your $ETH to an Ethos account, indicating financial support. This shows strong support and credibility.

Staking more Ethereum means more trust. The guaranteed person cannot access these funds; they only indicate trust.

You can also work with your peers to achieve 3,3 by guaranteeing each other (a cooperative strategy originated in game theory where participants achieve win-win results by working with each other), thereby amplifying the credibility scores and rewards for both parties.

With warranty, you can also receive the following incentives:

• Users can get 1% when they are guaranteed by others.
• If the user guarantees others, they can get up to 4% from future guarantees, but limited to the initial amount.
• A 1% agreement fee is also applicable when warranty/cancels of the warranty.

punish

Punishment allows trusted Ethos users to flag immoral behavior. If successful, the accused person's rating will drop the margin amount. If unsuccessful, the accuser's rating will drop. If the conclusion is unclear, the score remains the same.

Several requirements must be met before someone can punish other Ethos accounts, and the impact of punishment will be capped based on the penalty's rating.

Ethos Market

If you think that's all, consider this core feature that illustrates why tokenized reputation is a real new concept: reputation market.

The Ethos reputation market is based on Hanson's LMSR, similar to @polymarket, but with some key differences. Here you can trade and speculate on the reputation you gained on your Ethos account by choosing trust or distrust. Prices will change with the change of sentiment and the market will never resolve.

However, since reputation can change dramatically if the account is faced with controversy, it is also susceptible to manipulation, similar to the possibility of whales affecting the market by placing large bets on Polymarket.

Summarize

Ethos is an emerging tokenized reputation protocol designed to address the trust issue of cryptocurrencies. It combines community reviews, rewards, Ethereum-based endorsement and reputation markets to create a dynamic and real-time updated credibility measure.

Ethos achieves decentralization of trust by allowing users to verify each other, reward good behavior, and mark bad behavior, all done on-chain without central authority. This transparent system provides clear and native signals for trust, opening up new opportunities for decentralized autonomous organizations (DAOs) and decentralized applications (dApps).

I believe Ethos is a key step in Web3, helping communities rebuild trust and responsibility in a decentralized world.