While lack of a centralized regulator is a draw for many bitcoin users, others are concerned that this trait translates to a less secure transaction. Bitrated is one of many innovations attempting to give the cyber-currency security without the burden of centralized governmental regulation. The fact that bitcoin transactions are not reversible but are practically anonymous, means that the risk of fraud is some what exaggerated. Bitrated lets consumers know which users are trustworthy through a mix of authenticating strategies.
Bitrated approaches the problem by utilizing user provided information. The tool accepts reviews from consumers and allows users to build “webs of trust.” Bitrated also uses consumers’ existing online presence to determine their trustworthiness. Bitrated then translates this information into a trust quotient which lets users know if they are interacting with trusted actors on the bitcoin network. Bitrated founder, Nadav Ivgi said of his creation,
Our goal with the linked accounts system is to allow users to leverage their pre-existing internet persona and past internet activities into a measurable reputation.”
Bitrated has also established an arbitrator marketplace which allows registered users to set up contracts which will allow both buyers and sellers to dispute the transaction. This would allow for reverses in fraudulent transactions.
Read More – How Bitrated Wants to Put the Trust Back in Bitcoin (CoinDesk, Yessi Bello Perez)