Clear DefinitionsReputation Score
1 min read
Pronunciation
[rep-yuh-tay-shuhn skawr]
Analogy
Like a credit score that summarizes your financial reliability into a single number.
Definition
A quantitative metric reflecting an entity’s trustworthiness or performance based on historical behaviors and aggregated third-party assessments.
Key Points Intro
Reputation scores condense multifaceted trust signals into actionable ratings.
Key Points
Composite metric: combines on-chain and off-chain data
Dynamic updates: recalculated as new behaviors are observed
Contextual: scoring models tailored to specific use cases
Risk indicator: used to adjust access, fees, or collateral
Example
Technical Deep Dive
Scoring engines ingest transaction volume, contract interaction frequency, default rates, and third-party credit data. Weighted moving averages and decay functions give recent behavior more influence. Smart contracts fetch scores via oracles, cache with TTL, and trigger parameter adjustments.
Security Warning
Manipulated or fabricated behaviors can distort scores and mislead downstream protocols.
Caveat
Scores may lag real-world events and be susceptible to data inaccuracies or gaming.
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