Skip to content

sigma-rps/sigma-reputation-panel

Repository files navigation

Sigma Reputation System

Ergo Platform Badge
License: Unlicense

"In the blockchain ecosystem, trust is not given - it's earned."

🌐 Introduction

Blockchain technology has reshaped trust management by decentralizing authority, allowing users to interact in a transparent and secure manner. In this context, a robust Reputation System becomes indispensable for fostering trust and ensuring reliability across interactions. This decentralized trust infrastructure aims to bridge the gap where traditional centralized systems have fallen short, providing:

  • Transparent trust metrics
  • User-controlled reputation portability
  • Incentive-aligned interactions

Traditional Systems vs. Our Solution

Traditional Systems Our Decentralized Reputation System
Centralized control Decentralized governance
Opaque scoring Transparent, auditable metrics
Platform-locked reputation Chain-agnostic and portable

Why Reputation Matters

Key Challenges Addressed:

  • Trust Asymmetry: Blind interactions with unverified smart contracts and users
  • Sybil Attacks: Fake identities that undermine the integrity of networks
  • Reputation Fragmentation: Isolated, incompatible trust systems across platforms

Proposed solution:

This reputation system addresses these issues by using decentralized verification and economic incentives to ensure accurate, fair assessments. By allowing users to build trust across the network, it transforms interactions from "trustless" to "trust-based" while maintaining decentralization.
For example, P2P marketplaces can dynamically adjust pricing based on reputation scores validated by the community, helping eliminate middlemen and instilling confidence in users.


🛠️ System Design

The reputation system is composed of several core components that work seamlessly within the Sigma Chains ecosystem.

Core Components:

Component Functionality Advantage for Ergo Ecosystem
Reputation Tokens Portable units of trust across the network UTXO-based tracking and ownership
Rating Engine Dynamic reputation score calculation Fast and lightweight verification
Sigma Chains UTXOs Store reputation data and enforce rules Ensures decentralization and integrity

UTXO Structure Explained

Each Reputation Token UTXO contains essential data that defines the relationship between an evaluator and a subject:

  • 🔵 Object Type: Specifies what is being rated (e.g., contract, URL, user)
  • 🔢 Object ID: Unique identifier (e.g., contract hash, IPFS CID)
  • 🔑 Owner Key: The public key of the evaluator
  • ⚖️ Polarity: The evaluation itself, positive or negative

As reputation tokens circulate, their value increases not by consensus alone but through user interactions and engagement, enhancing their significance within the ecosystem.


🔐 Smart Contract Logic

Reputation tokens are governed by specific smart contract logic to ensure integrity and authenticity. Here’s an example of the core logic that regulates how tokens are created, stored, and used:

// Reputation Token Contract
{
  proveDlog(SELF.R7[GroupElement].get) &&  // Owner authentication
  sigmaProp(SELF.tokens.size == 1) &&      // Single token condition
  sigmaProp(OUTPUTS.forall { (x: Box) =>   // State validation
    !(x.tokens.exists { (token: (Coll[Byte], Long)) => 
      token._1 == SELF.tokens(0)._1 
    }) || (
      x.R7[GroupElement].get == SELF.R7[GroupElement].get &&
      x.tokens.size == 1 &&
      x.propositionBytes == SELF.propositionBytes &&
      (x.R8[Bool] == true || x.R8[Bool] == false)
    )
  })
}

This contract ensures that the reputation data remains tamper-proof, as only the owner of the token can modify it, and the data is securely linked to the evaluator’s public key.


📋 Technical Specifications

Register Type Description
R5 Coll[Byte] Entity type identifier
R6 Coll[Byte] Object fingerprint
R7 GroupElement Evaluator's public key
R8 Boolean ✅ Positive / ❌ Negative

Key Transaction Rules:

  1. Single token per UTXO: Each token represents a unique reputation assessment.
  2. Owner-controlled modifications: Only the owner of the token can modify the reputation data.
  3. State consistency: Reputation information must follow a strict set of rules to maintain integrity across the network.

🌍 Use Case Examples

Decentralized P2P Marketplaces

In a decentralized version of Airbnb, a user’s reputation score determines the terms and costs of renting a property. Similarly, a host’s reputation, built through community feedback, impacts their trustworthiness and attractiveness to renters. This creates a transparent, trust-based ecosystem without the need for intermediaries.

Node and Service Trust in the Celaut Project

Reputation systems can also empower decentralized service ecosystems, as seen in the Celaut Project. In this model, reputation records on ledgers allow nodes, users, and services to form a social decision-making framework:

  • Nodes: Use reputation to evaluate which peers they can trust to execute services reliably.
  • Users: Leverage reputation to choose services best suited to their needs.
  • Services: For deterministic services (default isolated mode), reputation remains consistent over time unless network interactions occur. If connected to networks, the service’s reputation can depend on those networks' trustworthiness.

For example, when nodes communicate, they share reputation proofs to evaluate each other’s trustworthiness. These opinions are non-consensual, meaning every actor independently decides whom to trust, based on their trusted sources. Reputation thus becomes a dynamic and adaptive mechanism for fostering decentralized trust.


🔐 Security Considerations

The decentralized nature of the reputation system ensures a high degree of security. Each transaction is verifiable, and reputation tokens cannot be forged or manipulated without consensus from the community. Moreover, the system encourages participation from all users by offering economic incentives, rewarding those who contribute honest and valuable assessments.


🛡️ Incentive Model

By leveraging Ergo’s native tokenomics, users are incentivized to participate in reputation scoring. Validators receive rewards for honest assessments, and penalties are imposed for malicious actions or false reporting. This ensures the long-term sustainability of the system, aligning user behavior with the interests of the broader community.


Conclusion

The Decentralized Reputation System offers a way to build trust in the blockchain ecosystem, enabling secure, transparent interactions. By integrating with the Sigma Chains infrastructure, it promises to empower users and foster a more reliable, decentralized digital environment.


License: The Unlicense - Public Domain Dedication

This is free and unencumbered software released into the public domain.