On-Chain Reputation
With its technical capabilities, financial functionalities, and economical framework, Ink Finance aims to be a credit discovery platform. Its primary goal is to promote transparency, competence, and responsibility in financial governance.
However, a framework entirely built upon incentives and penalties is inadequate in addressing integrity, particularly in crypto DeFi. Fortunately, mature and feasible external solutions are available that can be integrated into INK’s technology stack to tackle the issues of integrity. It is critical to note that the choice of using external facilities is vital to the integrity of INK itself!
The first issue is identity verification. The solution is to combine legal identity with biometric identity, which not only guarantees one-person-one-role on a crypto operating platform, but also instills legal recourse if structured right. Naturally, the external systems utilized must implement encryption schemes to keep sensitive data private but also allow sharing only when needed. All critical governance roles of an INK DAO can have uniquely minted tokens issued by the external integrity ensuring network(s). This is an explicit choice made by the DAO at its construction time to show its commitment to integrity. INK Finance’s top-down buildup process may enforce such commitment for certain applications when the process determines that the financial purpose of the prospective DAO demands it.
The second major issue regarding integrity has to do with off-chain custody and clearing. A ZKP-based bridge of the host blockchain can be developed to achieve privacy-protected asset verification and custody, provided that the target blockchain supports programmability. This solution also works well if the target assets originate from an enterprise blockchain or corporate clouds, which requires access permission for information that should be proved to exist but mustn’t be revealed. The InkEnvelope blueprint includes a placeholder for storing and accessing sensitive inter-operative information.
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