Blockchain expert and IT lawyer Vladimir Popov: reputation to become ‘currency’ of the future

Blockchain expert and IT lawyer Vladimir Popov: reputation to become ‘currency’ of the future

If you create a reputation system on blockchain, no one will be able to hack it, and negligent pseudo-agencies won’t be able to change data. So that reputation can become a real ‘currency’ of the future. Such an opinion was provided by Vladimir Popov, the head of Synergis, the law firm focusing on the IT sector, in his interview with Blockchain & Bitcoin Conference Belarus, where he will make a report.

The expert explained the difference between centralized reputation systems the solutions based on blockchain, why reputation is very important for business and how it can be improved.

Interviewer: Blockchain & Bitcoin Conference Belarus (BCB).

Speaker: Vladimir Popov (V.P.).

BCB: What is the difference between decentralized and centralized reputation systems?

V.P.: There are several differences. The main thing is that the blockchain-based system will not allow scammers and pseudo-agencies to change the recorded data. In today's ratings, it happens quite often, and blockchain will help us to avoid it.

In addition, if the ‘center’ of centralized reputation system fails, the system actually remains dysfunctional. And its analog on blockchain operates without a ‘center’, working, even if only one user remains on the network.

Another difference is in a high level of security. Blockchain is not just a trend. Today, the number of hacks based on cryptography can be counted on the fingers of one hand. While ‘traditional’ methods, such as phishing and search of passwords, are much more regular (up to 10% of the total amount).

BCB: Is there a need to regulate the use of reputation systems?

V.P.: I think that the market can cope with this task well, and it needs no regulation. I my report, I will explain in more detail how the reputation and figures for the industry are being rigged today. I will show the whole picture. I think that in such a way, it is possible to understand better why to use reputation systems in general.

BCB: How to deal with artificially overstated or undervalued ratings in reputation systems?

V.P.: In my opinion, you need to use the following approach:

  • Train special analysts to sift out explicit scams.
  • Train the neural network on the database that will be compiled by these analysts.
  • Provide additional control over reports from the second paragraph. At the same time, the crypto community should do a reverse check of the analysts. Automation of this process can be done through smart contracts.

BCB: What is the main problem when compiling reputation ratings?

V.P.: The main problem is that all ratings are fixed on one of the estimates: quantity, time or subjectivity. And everything is really simple: you need to combine them and know to what extent each of the criteria should be taken into account.

BCB: How important is the reputation for business?

V.P.: It is important to such an extent that in the future it will become a kind of currency. Cryptocurrencies will make the first step here. Then we will face tokenization of the personality. And finally, we’ll come to the fact that the reputation will turn into a pledge unit, and crypto assets will become the unit of account.

BCB: What should the company do (especially the one that starts tokensales) to improve its reputation?

V.P.: In my opinion, there are three important components. They are necessary, there may be a lack of them. First, you need to ensure full openness of the project: talk about it in social networks, communicate with the community in real life, show business planning.

Then it is necessary to establish communication with users and contributors.

And finally, make sure that the user's comments are not only taken into account, but also implemented. It is necessary to highlight all mistakes and correct them.

BCB: What will you talk about during your report at Blockchain & Bitcoin Conference Belarus?

V.P.: I will explain how the global reputation system is being formed today: through international cooperation of states, the development of ratings in technological and technical aspects, as well as through the use of negative experience of various organizations and countries.

I raised this topic in 2016, and two years later it proved its relevance. I believe that in 10-25 years we will see the creation of new markets. It is there that reputation will play the most important role. The business of the future is the business of a digitized reputation.

On October 10, Vladimir Popov will speak at Blockchain & Bitcoin Conference Belarus, telling the audience how to build a distributed reputation system.

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