Web3 Foundation Registrar

We are happy to announce that Web3 Foundation has set up a low-cost and open-source registrar service that automatically verifies Element (previously called Riot), Twitter, and Email accounts associated with a Polkadot account. This service will be extended to more verification options in the near future. This article illustrates the various benefits for validators and other token holders of setting an on-chain identity and gives further resources on how to use the service.

Benefits for Validators

The security assumptions of the Polkadot network are based around a core of honest validators, which safeguard the network and verify the state transition of the blockchain. While the protocol has strong on-chain mechanisms to align the economic incentives of validators to secure the network, this system relies on nominators to spot and elect suitable and trustworthy validators. To solve this behavioral challenge, reputation is a crucial factor. Validators can make a name for themselves for providing reliable validation services and thereby signal their trustworthiness.

As reputation plays a relevant role in the selection process of nominators, it is necessary that validators can be easily recognized. While stash addresses theoretically provide identifiability, it is hard for humans to cope with the abstract appearance of a public key. Additionally, without any further identifying information it is impossible to link the address to a real-world identity and to communicate with the entities behind the validator. Associating a validator’s account with a real-life identity through the W3F Registrar is the best way to solve this matching problem. This makes it easier to build a reputation for providing your services to the network, and gain an edge over competitors. The following graph illustrates the importance of an on-chain identity for validators in the election process.

Distribution of Nominator’s votes for Validators with and without Identity in Era 110

It shows the allocation of nominator’s stake for validators who are either with or without a verified identity. While this does not imply a causal relationship, it suggests that nominators trust their votes mainly to validators with a verified identity.

Benefits for all Token Holders

Polkadot has a sophisticated governance system that follows principles of democracy by giving every stakeholder a voice. In particular, token holders can decide on the future direction of the network by proposing changes via the on-chain governance mechanism, request funds from the Treasury, and run for a seat in Council. These democratic processes involve extensive discussions on platforms such as forums and social media (Twitter, Element, etc.) to build support. Being able to prove your real world identity and link it to your pseudonymous account can provide further weight to requests and discussions. This can allow you to more easily and successfully participate in Governance or request funds from the Treasury for your projects. Additionally, you can benefit from your previous endeavors, as other users are more likely to remember an identity than the string of letters and numbers which comprise a Polkadot address.

Summary

Setting an on-chain identity by using the W3F Registrar provides a good basis for validators to get into and stay in the active validator set and for other token holders to participate in Governance and the Treasury. The service is easy-to-use, open-source and, with a fee of only 0.25 DOT (to cover operations), cost-effective. The benefits can be summarized as follows:

Advantages of a verified identity for validators:

• Make your validator easily identifiable for nominators and provide a point of contact.
• Build and maintain your reputation in the ecosystem as a valuable member of the community and bond with your nominators.
• Attract new nominators and use your reputation to kickstart additional validators.

Advantages of a verified identity for all token holders:

• Become a public figure in the ecosystem by linking your on-chain account with your off-chain activity and help your on-chain proposals and candidacies.
• Build your reputation as an active member in the community.
• Make your on-chain behavior visible to your followers.

Further resources

• More information on Registrars: (https://wiki.polkadot.network/docs/en/learn-identity#registrars)
• Detailed instructions how to use the W3F Registar (https://wiki.polkadot.network/docs/en/learn-registrar)