“A very large portion of ‘gig economy’ startups are at the core, basically just a dispute resolution system, a reputation system, and a search engine. If you’re looking to build a decentralized version of one, maybe consider focusing on one component,” – Vitalik Buterin
After running the Listia P2P marketplace for over 9 years, the Ink Protocol team realized that the problems they were trying to solve could be generalized across all types of marketplaces. Building on those years of experience and learning from over 100M items traded on Listia, they launched a decentralized transaction system that can be used on any marketplace. The system includes self-sovereign reputation, decentralized escrow, and dispute resolution.
Ink Protocol’s decentralized transaction system is a great way to focus, as Vitalik recommended. Taking this tip a level higher, the team projected that a self-owned reputation that can move from one marketplace or app to another will change the way people buy and sell online. Ink Protocol took these two critical points into account as well as a third, 2M items listed using XNK ensures mass adoption, making XNK one of the largest real-world consumer applications on a blockchain.
Seller reputation is an important asset because buyers often choose sellers on the basis of their reputation. This is particularly true when the quality of the goods or services are hard to measure and the parties cannot perfectly predict the outcome of the transaction. As a consequence, the seller will be mindful of building and maintaining a good reputation through the information that buyers have about the seller, including previous transactions and the reports of other buyers.
Buyers will often pay higher prices from a seller with a better reputation and prefer marketplaces like eBay, Amazon, and Etsy, rather than taking a risk with lower prices from a seller with a lower reputation. As a result, sellers work extremely hard to maintain a pristine seller reputation through great customer service, fast shipping, and quality products. Craigslist, OLX, and Facebook