DREP DID: Building an NFT-Based Reputation Pass into Web3

Binance has introduced an opt-in feature that enables KYC’d users to mint Binance Account bound (BAB) tokens. BAB is one of the pilot forms of Soul-Bound Tokens (SBT), with strong attempt in initiating a reputation-based decentralized era based on a unified user digital identity (DID) network.

DREP DID (Decentralized Identifier), developed with zero-knowledge proof technology, can essentially provide an online identification for Web3 users, and it will be able to define users’ reputation through community interactions if combined with DREP Credit, an on-chain KYC database.

Reputation can further decide one’s financial power, which accounts for a huge stand in the interconnected world. If put in a real-life financial setting, that said those who has conducted mistrust behaviors, have to go through longer process to obtain certain credit loans.

Similarly, in the digital world or futuristic DeSoc, a reputation-backed identity can empower users in financing and socializing. DREP is foresighted to working towards it — to build a unified reputation pass in Web3 based on DREP DID system.

DREP’s Vision into an NFT-Based DID System

Ideally, an NFT-based DID system will be supported by two categories of NFTs: Transferable NFTs and Non-transferables (SBTs). Transferable NFTs refers to NFT assets that can be traded in marketplaces, like Bored Apes or Crypto punks. Transferability brings along liquidity potential, thus this type of NFTs are born with trading value and can reap sound financial income.

DREP has offered in-depth analysis of NFT Financialization in the previous blog: https://medium.com/@drep-foundation/drep-cross-chain-nft-mechanism-to-solidify-nft-financialization-6172de71eacc

While non-transferable NFTs, or SBTs, will wholly belong to one identity (soul) and cannot be transferred between individuals. Non-transferability means this type of NFTs focus more on the value of reputation rather than monetary sums. Proof of identity, for example, will be one of the use cases. Being as identity provables, SBTs can be further divided into three types: behavior, originality and accreditations.

• Behavior can be a consequential factor to contribute to the reputation of an identity, which refers to all tokenized on-chain activities, such as transactions, transfers and interactions with other addresses etc.
• Originality serves as the foundation of a DID and is indispensable in completing one’s reputation CV, often referring to native user bio, such as personal information and any social accounts and activities initiated by the user selves.
• Accreditations refer to proofs issued by a third party, such as degrees or verifiable credentials. Accreditations further certify the authenticity of an identity, while adding to its reputation validity.

DREP’s Solution to Build a Reliable DID System

As a pioneer in Web3, DREP proposed several solutions to build towards a credible and reliable reputation-based DID system.

DREP DID is able to integrate cross-chain information and user activities across separate platforms. It can also be leveraged by third-party protocols to build a universal digital identity for users. In addition to including on-chain activities of all linked addresses, DREP will enable reputation analysis of user behavior through DREP Credit, DREP’s on-chain KYC module embedded with a social media frontend.

Normally, user behavior such as following instructions to finish a task will be deemed as a positive addition to their reputation by DREP Credit, meanwhile, users are incentivized with DREP bounty points to fulfill more tasks so that they provide enough activities for Credit to generate a reputation rating in the up-to-come credit scoring module.

Owning credit database of users in DREP ecosystem, DREP highly emphasizes the protection of user privacy. With the support of zero-knowledge proof technology, DREP is able to assist users in identity validation with disclosing any personal information to the third party, ensuring an efficient authentification process.

DREP Outlook: DID to Empower a Trustless Web3

Just like in-real-life reputation enables one’s social identity in many aspects, DREP DID holds the view to build a universal e-passport that not only stores user data, but also suggests their reputation records. This would be beneficial in regard to social scenarios, such as DAO governance and quadratic voting.

As more realized how digital identity along with reputation counts in a decentralized society, a reputation-based DID system will be a go-to solution. DREP will actively optimize the mechanism of DID system to forge a reputation pass for effortless Web3 adoption.

For more information,

Website: https://www.drep.org/

Twitter: https://twitter.com/DrepOfficial

Telegram: https://t.me/drep_foundation

Telegram Ann: https://t.me/drep_foundation_announcements