Building an on-chain reputation
Previously we discussed what an on-chain identity is and explained that these are created since transactions are social by nature. Who and what we interact with, the DAOs (on-chain politics) we engage with and the art we value all help to paint the picture of our decentralized identity.
We ended our last discussion with a point to ponder about:
“Yet, we do need to consider that tracing a wallet address (e.g J6QDz...cP5s) can be challenging. We are only human and these lengthy addresses aren’t very recognizable. In saying this, many transactions or social interactions on-chain can go unnoticed and we’d fail to paint the full picture of the person. That’s where a memorable name would help.”
The whole concept of building an on-chain identity is aggregating your blockchain transactions and the sum of these is what creates your reputation on-chain. However, the traceability of these addresses is a little complex since they aren’t exactly recognizable by the eye.
You need a name
Think about your favorite influencer or even academic. You all know these by name and not by a string of numbers and letters. If the academic wasn’t cited multiple times or if the influencer didn’t have the same name across social media platforms it’ll be difficult to follow and or take note of them.
Well, the same goes for when operating on a blockchain and exactly where domain name services come to play. A decentralized domain name service allows you to purchase a name that is directly linked to your wallet address. Now, instead of using the wallet address “J6QDz...cP5s” you can use bob.sol, for example. So it becomes much easier for an individual to be recognized when their name is displayed alongside all their on-chain interactions. This way you can (1) detect them (2) remember them and (3) start forming a perception of their on-chain identity.
However, unlike conventions in the Web2 sphere where usernames are pretty prevalent, blockchains depend on decentralized applications to identify people not just by their address but by their domain name too. To convince these applications we earnestly need to explain and comprehend the value of decentralized identities in the Web3 world.
Naming becomes even more important when you are using multiple different platforms or blockchains. How else would we know what Brad Pitt said on Twitter, the Instagram picture he posted, the live stream he dropped on Twitch, or the cute family memory he shared on Facebook? We know this because he likely uses the same username across these different platforms. His digital identity is formed by all of these platforms together and not one in isolation. We need to think about domain names (on-chain usernames) in a similar fashion. These names should have the ability to be “exported” across all transactions we make - no matter the project or the blockchain we find ourselves on. The value lies in being able to aggregate all your on-chain interactions and doing so in an efficient, easy-to-remember way so we can start establishing our identities and reputations in the wake of Web3.
Closing note
This concept may still be a little far-fetched for some to fully comprehend. Fret not, the importance of decentralized identity and naming services for that matter will be better understood when blockchain technology is more widespread. When its usability gets ingrained in our everyday life we’ll start to see that the basics we appreciate today such as being called by our name or being able to fall back on our reputation become a necessity.
