Trust Network for Blockchain Transactions

Short Answer Question

What is the basic function of a trust network?

Trust networks generate consensus trust scores for cryptocurrency traders. These scores are designed to provide cryptocurrency traders with protection against fraud while protecting the anonymity and autonomy of users.

How does a trust network collect fraud and custody data associated with blockchain addresses?

Trust networks collect data from a variety of data sources, including fraud data sources and custody data sources. Fraud data may include blacklists, government watch lists, and fraudulent behavior identified on social media platforms. Custody data may come from entities such as exchanges, wallets, and banks, indicating who owns or controls a blockchain address.

What is the difference between a "local trust score" and a "consensus trust score"?

A local trust score is calculated by a single node based on the blockchain data and fraud/custody data it collects. A consensus trust score is determined after consensus is reached based on the local trust scores of multiple nodes, which is more robust and resistant to errors or malicious behavior of a single node.

What is a "candidate trust score" in a trust network, and what role does it play in determining a consensus trust score?

A candidate trust score is calculated by a single node after collecting local trust scores from a sufficient number of other nodes. It is a node's preliminary estimate of the final consensus trust score. The consensus trust score is calculated based on the candidate trust scores of multiple nodes.

What is the use of "reputation protocols" in trust networks?

Reputation protocols are used to track and evaluate the reputation of nodes participating in trust networks. Reputation values can be based on various factors, such as the quality of computations performed by nodes, the accuracy of the trust scores provided, and online time.

What role does UTOKEN play in trust networks?

UTOKEN is the native utility token used in trust networks and is used as a medium of exchange. It can be used to pay for trust scores and fraud alerts, reward nodes for performing work, and serve as a stake for nodes to participate in network governance and decision-making.

How are nodes rewarded for their contributions to the trust network?

The trust network implements a reward protocol that periodically pays UTOKEN rewards to nodes based on their reputation values. Nodes with higher reputations (e.g., those that provide accurate trust scores, stay online, and actively participate in the consensus process) receive more rewards.

What role does staking play in trust networks?

Nodes can join the trust network and gain different levels of functionality by staking a certain amount of UTOKEN. The staked UTOKEN acts as a guarantee for the node's honest behavior, and if the node is found to be engaging in malicious behavior (such as providing fraudulent trust scores), it may be slashed.

How does a trust network ensure that it is protected from Sybil attacks?

Trust networks reduce the risk of Sybil attacks by requiring nodes to stake a large amount of UTOKEN, which makes it expensive and impractical to create a large number of fake nodes. In addition, the network divides work into non-overlapping groups, limiting the impact of any single node (even a malicious node) on the entire network.

How are smart contracts used in trust networks?

Smart contracts can be deployed on blockchain networks to automatically execute transactions using trust scores provided by trust networks. For example, a smart contract can be programmed to release funds only if the recipient's trust score is above a predetermined threshold.

Paper Title

Discuss the importance of trust networks in maintaining the safety and security of the cryptocurrency ecosystem.

Analyze the different types of reputation values used in trust networks and their impact on node behavior and overall network health.

Critically evaluate the effectiveness and security of consensus mechanisms used in trust networks, especially in preventing collusion attacks and ensuring accurate trust scores.

Explore the potential benefits and challenges of integrating reputation-based systems such as trust networks into other decentralized platforms and applications.

Analyze the token economics implemented in trust networks, including the role of UTOKEN, reward mechanisms, and the impact of staking and forfeiture on network sustainability.

Glossary of Key Terms

Definition of Terms Trust Network A decentralized system for generating consensus trust scores for cryptocurrency traders. Consensus Trust Score A trust score determined by a trust network after reaching consensus based on the local trust scores of multiple nodes. Local Trust Score A trust score calculated by a single node based on its collected blockchain data and fraud/custody data. Candidate Trust Score A preliminary consensus trust score calculated by a single node after collecting the local trust scores of a sufficient number of other nodes. Reputation Protocol A system for tracking and evaluating the reputation of nodes participating in a trust network. The native utility token used in the UTOKEN Trust Network, used as a medium of exchange for payment and staking. Reward Protocol A system for periodically paying UTOKEN rewards to nodes based on their reputation value. Staking The act of a node depositing a certain amount of UTOKEN as a security deposit to gain network participation and governance rights. Smart Contract A piece of code deployed on a blockchain network to automatically execute and enforce predefined terms of an agreement. Blockchain Address A unique identifier for a cryptocurrency trader on a blockchain network. Fraud Data Data from sources such as blacklists, government watch lists, and social media analysis that indicates potential fraudulent behavior by a blockchain address. Custody Data Data that indicates who owns or controls a blockchain address.