Today there is no standard for digital identity using blockchain technology. Perhaps Secret Network could be used to create a reputation system that would become Sybil-resistant over time?
This would be a system where each identity would have a confidence rating. The rating would signify the likelihood that the identity is legitimate. Users would stake tokens on identities to increase this number. Perhaps they could be slashed if the identity is proven to be fake and receive rewards when the identity is authenticated by other systems (of course with great consideration not to increase the risk of Sybil attacks). Over time, corporations and government agencies could become part of the system and help with the verification process.
Another verification method could be analyzing the user’s social network data, as was described in the Bot or Not blog post. We could also imagine that users post verification proofs on, for instance, Twitter or Reddit, and the number of followers/karma would translate to a higher degree of confidence. This proof would be designed in such a way that it could not be used to figure out the user’s public key or identity but only be used to strengthen their confidence rating.
The degree of confidence could be based on the following parameters:
- The confidence number of adjacent identities
- The amount that has been staked on an identity
- The number of verification methods that have been used on the identity
What do you see as the major challenges with a system like this? Could the system still be useful in the beginning stages, even if it was not yet 100% Sybil-resistant?