Trust and Reputation Systems Leverage Blockchain Technology
Monetha, a company leveraging blockchain technology to create a decentralised trust and reputation system working with payment processor, has announced an upcoming ICO, set to start on the 22nd August. The solution is aiming to solve the problems of trust and reputation, payments, and access to growing cryptocurrency economies — specifically Ethereum — that merchants experience. Co-founder Justas Pikelis describes the platform as a cross between PayPal and the Trustpilot platform on the Ethereum blockchain.
As detailed in the company’s whitepaper, the Monetha crowdsale and token creation process will be enabled by smart contracts running on the Ethereum blockchain. Ether will be used to purchase Monetha Tokens (MTH) in a ratio of 2,000 MTH : 1 ETH, with a 20% discount for early investors. For this ICO, there will be a ‘soft cap’ set at the equivalent of 7 million EUR. The Token Creation period will last fourteen days, or until the Hard Cap is reached.
The Monetha team will control 15% of the generated MTH, which will be automatically locked for 12 months by smart contracts. 15% of tokens generated will be for the loyalty program. 8% of tokens will be set aside for bounty, partners, advisors and loyalty programs, with the remaining 62% going to Crowdsale participants. The event is due to start during August and run for two weeks, with specific dates to be set.
The decentralised trust system records a range of data onto the blockchain every time a transaction is made, so that people in any situation can trust the information involved. Information is encrypted and only those authorised to view it can access it. This information can be used for any purpose and over time a ‘trust rating’ will be built up by associated smart contracts. Merchants and clients can increase their rating by buying or sell goods/services, solving claims quickly, writing reviews and other select methods, leading to a system which will build up a trustworthy network for anyone to rely on.
Monetha uses Ethereum to remove intermediaries and save both money and time for merchants and clients alike. The platform applies a single transaction fee that costs 1.5% for merchants and payment is expected to take around two minutes. Of the merchant fees, 0.5% will go to a smart contract for ICO investors and the other 1% will go the company as revenues. It has also been designed to be wallet agnostic for any Ethereum wallet, and creates a wallet for merchants to use. Currencies will be transferrable into fiat currencies thereafter.
Holders of Monetha Tokens will be entitled to a share of profits and therefore will also be incentivised to use and promote the network. There is also a loyalty rewards system in place.
