Coinbase Advocates for On-Chain Reputation Framework Utilizing ENS (Ethereum Name Service) to Foster Trust Onchain
Coinbase is encouraging developers to create an on-chain reputation framework aimed at enhancing trust in DeFi applications with the help of ENS. As one of the premier cryptocurrency exchanges globally, Coinbase emphasizes the necessity of establishing trust among users through this system.
The exchange is confident that implementing such a framework could ensure that specified requirements are met before an on-chain identity engages with any DeFi application. Coinbase proposes a system akin to a credit score or ranking that can bolster trust onchain.
Highlighting the significance of trust in DeFi applications as the sector expands swiftly, Coinbase advocates that an on-chain reputation framework could cultivate trust between users while mitigating the chances of fraud or scams. By developing a system that establishes credit scores or rankings for ENS names, along with ratings/reviews for merchants, and other initiatives that foster trust onchain, Coinbase believes developers can enhance the user experience and draw more individuals into DeFi applications.
Nevertheless, Coinbase is adamant that any reputation protocol must safeguard user privacy and autonomy. The exchange insists that developers should navigate a balance between fostering trust and protecting user privacy. Coinbase urges developers to aim for a reputation protocol that can fulfill both objectives concurrently.
In closing, Coinbase’s appeal is timely as the necessity for an on-chain reputation framework grows increasingly urgent alongside the rising popularity of DeFi applications. By cultivating trust onchain, developers have the potential to attract more users, diminish the risk of fraud or scams, and elevate the overall user experience. It’s essential for developers to heed Coinbase’s call and strive towards constructing a reputation protocol that maintains user privacy while enhancing onchain trust.
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