Web3 Digital Identity and Reputation
“It requires numerous positive actions to construct a strong reputation, but just one negative can shatter it.”
— Benjamin Franklin
Few places exemplify this more than web3, a realm founded on groundbreaking technologies, disruptive notions, and, in essence, visionaries.
These visionaries have established blockchain-based realms on revolutionary concepts, transformative technologies, and frequently unconventional reputations — realms we’ve seen crumble abruptly.
In web3, we cherish a daily dose of inspiration to uplift our spirits, particularly during market challenges, reminding us why we entered this often demanding and unpredictable realm.
We relish our GMs, memes, conferences, celebrations, product unveilings, and our leaders, whose audacious and at times eccentric personas come to define both them and their communities. We have our maxis and bulls — and these enthusiastic communities rally around the technologies and products they believe in and their creators.
Repeatedly, particularly this year, web3 has taught us that behind every headline and price chart is a human, shaped not only by who they are but also by their actions.
Ultimately, reputation and identity are paramount. In web3, this is a lesson we sometimes lose sight of.
In the realm of web3, language — and individuals — are intricate.
User-centricity stands as a fundamental value when developing products and communities on blockchain technology. We prioritize the many over the few, be it in decentralized finance or social networks. The true innovation lies in eliminating the need for trust in a third party (trustlessness), allowing participation without seeking permission (permissionless), and ideally granting complete control over identity and data (self-sovereignty).
Ironically, in an ideally decentralized sector where we distribute power and capabilities to users, there remains a significant (often uncritical) reliance on those in authoritative positions: founders, CEOs, and even developers and product creators who influence much of what occurs publicly.
As the promising signs of an approaching bull market emerge, it’s crucial not to forget that deception and dishonesty plunged us into the chilling depths of the recent cycle. The significance of words, reputations, and identities cannot be overlooked.
Can web3 users be blamed for unquestioningly following leaders like SBF? While “not your keys, not your crypto” is a mantra users should be familiar with, web3 revolves around intricate technology and people.
In web3, for better or worse, everyone aspires to reach great heights, often aligning with technology without fully grasping its creators, the mechanisms behind it, and their intricate connection.
We advocate “don’t trust, verify” — and that should extend to verifying people’s identity and reputation just as rigorously as any transaction.
Establishing on-chain reputation and identity
Navigating the tumultuous landscape of web3, from bustling community channels where alpha, memes, and menace intertwine, to the statements of exchange founders in global media, discerning signal from noise can be challenging. Much like how NFTs revolutionized on-chain asset verifiability, a parallel shift should occur for individuals.
A decentralized system for reputation and identity redefines how we gauge and authenticate trust in a domain where anonymity and decentralization often serve as initial attractions. Authenticating trust and reputation requires emulating Satoshi’s approach: crafting an infrastructure that empowers all potential participants with confidence rooted not in the words or personalities of others but in their tokenized actions.
Whether integrated into DAOs or Discord, an on-chain network and marketplace emphasizing quantifiable credibility, reputation, and identity equips users with the means to understand their community peers and the key figures behind entities they opt to engage or invest in.
For institutions, regulators, and potential business collaborators, a technological solution for identity and reputation distinguishes between bad and good actors, facilitating ethical investments. This capability is in high demand, evident in the 2022 institutional investor survey where respondents emphasized that trust remains a pivotal factor in forming partnerships.
Table of Contents
- Let’s pave the way for the next generation
Let’s pave the way for the next generation.
Life, and certainly web3, operates in cycles. Reflecting on this moment, what do we aspire to be remembered for? Personally, I strive to contribute to a space and community I am deeply passionate about by making it better, safer, and more efficient. For those wholeheartedly invested in web3, we owe them a level of confidence and control.
To manifest this new future, change is not just suggested but imperative. We cannot allow another cycle of profound losses, negative headlines, untrustworthy leadership, and reckless customer actions. Instead, we must actively replace these concerning realities with a focus on genuine, verified reputation and identity across the diverse environments of web3.
In web3, if we genuinely wish to avoid repeating the errors of the past, we can — and must — construct for the future. And a better future, at that.
Charles Wayn is a seasoned web3 entrepreneur and the Co-Founder of Galxe, the premier platform for constructing web3 communities. With over 14 million users integrated across 16 different blockchains, Galxe has fueled the growth of Linea, Optimism, Polygon, Arbitrum, and more than 4,000 partners, including Forbes and UFC Strike, through reward-based loyalty programs. Before founding Galxe, Charles co-established and served as CEO of DLive, the largest live streaming platform globally, built with blockchain technology. The platform was acquired by BitTorrent in December 2019, and Charles served as VP of Interactive Entertainment. Galxe is supported by Multicoin Capital, Dragonfly Capital, Spartan Group, Solana Ventures, Coinbase Ventures, etc. Charles also advises Salad Ventures, a leading Play-to-Earn (P2E) funding firm.
