GM Humans,

Why not revise or go back to basics around how we envision Mercle?

We are trying to build an identity layer and reputation with Proof of Personhood as a protective layer on top of it.

➡ For starters - Identity and reputation are intrinsically linked, as a user’s reputation builds upon their digital identity. This connection enhances trust and facilitates interactions, allowing people to establish a track record of reliability recognized across various platforms and applications.

What is Identity?

Identity refers to the set of attributes or information that uniquely distinguishes an individual, entity, or thing. It can be classified into several forms:

1. Personal Identity (Offline or IRL)

Personal identity includes traditional identifiers used in the physical world to recognize individuals:
Name: The basic identifier used to distinguish one person from another.

‣ Date of Birth: Provides information about a person’s age and, often, legal status.

‣ National ID: A government-issued number that uniquely identifies citizens.

‣ Driver’s License: A document that provides both identification and proof of driving competence.

These identifiers are crucial for verifying an individual's identity in various offline contexts, such as legal, financial, and social interactions.

➡ But remember, every organisation has their own set of systems to issue identities. For example - if you're working in Coinbase, they must be issuing some sort of ID that is only recognised within their systems & if you're working in Mercle we issue an ID that is again recognised within our system. This means that identities follow certain rules based on the system they are in.

2. Digital Identity (Online)

Digital identity comprises attributes and credentials used to represent individuals on the Internet:
Email: A primary mode of identification for online accounts and communication.

‣ Social Media Profiles: Accounts on platforms like Twitter or Facebook that reflect a person’s online presence.

‣ Online Banking Username: Credentials used to access financial services.

Digital identities are essential for interacting with online services, engaging in social media, and conducting e-commerce transactions.

3. On-Chain Identity (Blockchain Networks)

On-chain identity refers to the unique identifiers used within blockchain ecosystems:

‣ Wallet Address: A public key that allows users to send, receive, and store cryptocurrencies.

‣ Lens/Farcaster/0xppl Profile: A decentralized identity used on blockchain-based social networks.

‣ ENS (Ethereum Name Service): A human-readable name for blockchain addresses, improving user experience.

On-chain identities enable users to be a part of the broader crypto space.

What is Reputation?

Reputation is the perception or opinion that is generally held about someone or something, based on past actions or performance. It is inherently social and dynamic, influenced by individual actions and societal interpretations.

Personal Reputation (IRL)

Personal reputation is built through interactions and behaviours in the physical world:

‣ Workplace: A person’s reliability, punctuality, and teamwork contribute to their professional reputation, influencing career opportunities and relationships.

Online Reputation

Online reputation is established through digital interactions and content shared on the internet:

‣ E-commerce Platforms: Ratings and reviews on sites like eBay reflect trustworthiness as a buyer or seller.

‣ Social Media Influence: Engagement and content quality on platforms like Twitter impact how a person is perceived in digital communities.

On-Chain Reputation

On-chain reputation is developed through interactions and contributions within blockchain networks:

‣ DeFi Apps: Participation and activity levels in dApps like @Uniswap, @TraderJoe_xyz, @aave, @JumperExchange, @LidoFinance, etc.

‣ For example - someone with more than 30,000 @MitosisOrg Points will be recognised as expedition explorers, someone who has more than level 10 on Jumper Exchange has a reputation of active bridge.

‣ Trading History: Consistent and significant trading activity can build a reputation as an experienced trader.

Reputation systems in the crypto space rely on transparent and immutable blockchain records to assess past behavior and contributions, influencing trust and credibility within the block explorers. (LoL)

Proof of Personhood (PoP) as a Protective Layer

Proof of Personhood (PoP) adds an additional layer of protection and verification to identity and reputation systems in the crypto space. PoP aims to ensure that each digital identity corresponds to a unique human being, mitigating the risks of Sybil attacks, where a single entity creates multiple fake identities to manipulate systems.

A point to be added here: There is no ideal form of proof of personhood, but we as a space are trying to workaround to find the most sustainable way.

➡ PoP systems use a combination of biometric data (iris scan, palm scan, etc.), social verification (reputation based graph verification), etc. to confirm the uniqueness of each user without revealing their real-world identity.

This approach balances privacy with security, allowing users to prove their humanity while preserving anonymity.

Use Cases for the Identity Layer

‣ Personalized Incentives Based on Reputation Scores: Personalized incentives are tailored to users' reputation scores, offering exclusive rewards like early access to projects, tiered bonuses, or priority support.

‣ Undercollateralized Lending: Digital identity and reputation enable lending platforms to assess creditworthiness and offer loans with minimal collateral, supporting financial inclusion.

‣ Airdrops for Token Distributions: Target genuine users for airdrops, ensuring tokens reach active community members rather than bots or duplicates.

‣ Voting in DAOs: A reliable identity layer ensures unique votes, enhancing the fairness of DAO governance, with reputation influencing voting power.
Token/NFT Sales: Verify participant eligibility in sales, offering better terms to reputable users and preventing sybil attacks.

‣ Sybil Protection: PoP systems protect networks against sybil attacks, maintaining the integrity of decentralized applications.

NOTE - Everybody knows about these use-cases more or less, well, stay tuned, the post got very long. I will be writing more use cases thoroughly.

And oh yes, among all this - extreme degenism with all the fun is embedded.

TL;DR: Here's what I mean by this long post. 👇