Advertisment

What happens when feedback rating is not controlled by any centralized party or marketplace?

Ink Protocol is a decentralized reputation and payment protocol, which is using the XNK token to bring trust and decentralization to any marketplace.The idea of having a decentralized peer-to-peer marketplace governed by a cryptocurrency on the blockchain is very good and can increase the trust in this space, which could also make the market more efficient.

Ink Protocol endeavors to take away the monopolistic power from marketplaces which have the ability to modify a seller’s reputation, censor, or otherwise filter out feedback, and most importantly, they are able to charge extremely high fees (20–30% in some cases) because they own the seller’s reputation data. The only way for sellers to use and benefit from this hard earned reputation is to continue selling in that marketplace.

Self-sovereign reputation frees sellers from the confines of any specific centralized or decentralized marketplace, and allows them to sell on any platform they want, such as managed online marketplaces, classifieds style online marketplaces, social media, decentralized marketplaces, offline marketplaces (such as farmers markets and flea markets), and service marketplaces.

As designed, Ink Protocol enables buyers to have full control over the content of each individual feedback rating, and feedback will only be tied to a verified transaction.As the system keeps the data completely free from any centralized party or marketplace, sellers are incentivized to work hard on customer service, fulfillment, and quality while it allows them to be the main beneficiary of all their hard work.

Feedback  aggregated for all markets form a decentralized reputation for users

This is the way Ink Protocol disrupts centralized marketplace monopolies: First, the smart contract will feature a decentralized feedback mechanism, where buyers can leave feedback for the seller about each transaction. This feedback will consist of a rating and comment about the transaction, stored as public data on the Ethereum blockchain.

Second, as more third-party marketplaces adopt Ink Protocol, this feedback will be stored for each marketplace and aggregated together between all markets to form a decentralized reputation for each user, identified by their Ethereum address.

By adopting a blockchain based system, sellers will benefit from decentralization as well as more security and transparency in their operations. Any marketplace that supports Ink Protocol will benefit from improved trust and security for their platforms. Even brand-new marketplaces can launch with instant trust and user feedback in place due to Ink Protocol and the XNK token.

Marketplaces that refuse to give sellers public credit will be viewed as less trustworthy than those that adopt Ink Protocol. Users will migrate to marketplaces that give them public recognition on the blockchain, and markets will then have a strong incentive to adopt the protocol.

With Ink Protocol, buyers get peace of mind, and sellers get a transferable reputation that frees them from the confines of centralized marketplaces.

For more information, visit Ink Protocol.

Learn more here.

Telegram here

You want the latest news about Crypto? Sign up to our weekly Newsletter!