Cryptoeconomics, when it works, creates a hothouse environment to improve legacy financial tools like credit assessments, leading to real consumer and economic gains.
At Spectral, we’re creating and incentivizing a network of modelers, creators, users and validators using proof-of-stake mechanics. The idea — similar to Chainlink and The Graph’s models — is to build a decentralized marketplace with a built-in feedback mechanism that ferrets out and discourages bad actors.James McGirk is a senior writer at Spectral Finance and the co-founder of Lonely ROCKS.
The promise of an on-chain credit score is that it’s opt-in, completely transparent, and eventually, production of the algorithm generating the scores can be decentralized by incentivizing a competitive marketplace. Netflix pioneered the technique in the 2000s when they offered and eventually paid a million-dollar bounty to a team of data scientists who improved their recommendation algorithm by 10%.
Our model is a little more complicated. We’re incentivizing a contest. So we divide our network into modelers and creators, who create data science challenges for the modelers to tackle, in this case an accurate credit score generated from on-chain information. Creators post a bounty which modelers compete for during a specific time period; meanwhile, during this time modelers stake SPEC tokens, which can be slashed by validators in case of bad behavior. Creators post a service level agreement , which is standard legalese for contractual terms, which modelers commit to when entering the contest. This SLA can specify criteria such as achieving accuracy benchmarks or uptime.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Ethereum Staking Stacks Up in the Proof-of-Stake LandscapeA victim of its own success? The rising number of validators on Ethereum is driving staking rewards down, according to CoinDesk Indices data. But other chains are weak competition, accounting for token supply inflation and real yields.
Read more »
DappCasino Unveils Comprehensive Guides on Decentralized Gambling: Bridging Traditional and Crypto Gaming WorldsDappCasino Launches a Bespoke New Set Of Casino Reviews Following Up On The Next Big Sites, Benefits, and Risks in The Decentralized Gambling Sphere
Read more »
Shiba Inu's BONE Token Has Been Renounced. Here's What It MeansThis transition has transformed Shibarium's BONE into a fully decentralized entity
Read more »
OKX Releases 11th Proof of Reserves Report With Over $11.2B in Primary AssetsThe USD value of OKX's reserves has increased by more than 7.6% since August this year.
Read more »
Proof Patrick Mahomes Was Enchanted to Meet Taylor Swift After Game With Travis KelcePatrick Mahomes revealed he met Taylor Swift during an afterparty with the singer and teammate Travis Kelce following the Chiefs’ victory against the Chicago Bears.
Read more »