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Proof of Reputation

Reputation is Everything

Reputation is critical to a business. A business that acts in an unethical way suffers on many levels including financial (fines, loss of revenue), valuation decreases, branding (distrust) and public relations. Trust is cornerstone to a successful business and once a brand loses trust with their customers, it can take years to recover if ever.

PoR is Very Secure

PoR adds a layer of protection that may have never existed before and that is having companies working together to keep each other honest. Imagine if Volkswagen worked with Ford, Toyota and others to validate and verify their emissions tests. It is extremely unlikely that Volkswagen could have even attempted to cheat the system when their competitors are performing tests on each other’s vehicles. And even if they attempted to act in a nefarious way, knowing the risks, once caught, they would quickly be voted out of the consortium and lose their rights to be a part of the network.

About other Proof of Authority Networks

Proof of Authority (PoA) works great in a private network, which is what it was originally intended for, where you know and trust the nodes you add to the network. The advantages gained with PoA are hard to ignore so using it for consensus in a public network is a great thing to solve for. The problem is it doesn’t work in a public setting without something at stake. There are a couple of other companies that are attempting to use PoA in a public network, but there are several issues with these networks.

Rating Reputation

There are a few factors to take into account:

  • Valuation — the higher the value of a company means the more financial risk.
  • Brand — companies like Coca Cola or Apple are very high on the brand scale, almost to the point where you could say brand is everything to them. A coal mining company does not have the same kind of brand risk.

Technical Benefits

The benefits of Proof of Reputation are:

  • It’s green — No need to consume large quantities of electricity in order to secure a blockchain (Bitcoin and Ethereum are estimated to burn over $12 million worth of electricity costs per day as part of their consensus mechanism).
  • It’s secure (see above).
  • It can perform much faster due to removing the heavy calculations required for PoW and having a known number and size of nodes.
  • It’s as decentralized as the companies are decentralized.

Business Benefits

Proof of Reputation has benefits from a business point of view in addition to the technical benefits above. One of the main things is that enterprise companies may be more willing to use a network using PoR than they would be using an untrusted, anonymous network such as one that is using PoW or PoS.

Onwards and Upwards

GoChain is ready to change the world of smart contracts and DApps by using PoR to drastically increase performance, massively decrease energy consumption, and keep the network secure and decentralized. We believe Proof of Reputation is a great step forward in solving the inherent issues of existing blockchains and cryptocurrencies.

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100% Ethereum Compatible, 100x Faster - https://gochain.io

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