It enables combining regulatory compliance for every DApp and full privacy for every user.
And so much more...
Through contingent transactions and zkCertificates, one can achieve web2 levels of compliance, all automated and composable:
A user interacting with a perpetual products DEX only contingent upon one being over 18 years of age and being categorized as an Accredited Investor;
A user interacting with a DApp only contingent upon one not being a citizen of a prohibited jurisdiction;
Compliant privacy roll-ups and DApps whereby users can retain the privacy of transactions without compromising compliance.
Heterogeneous DeFi for heterogeneous human profiles:
Creating a staking DApp with yield boosters for residents of a certain jurisdiction (i.e. affected by a natural disaster or famine);
A DAO registered in an offshore jurisdiction managing a platform that excludes residents of said jurisdiction;
Fast generation of proofs that all the accounts registered under one's name have only interacted with liquidity of KYC'ed users without revealing any other information.
One can generate programmable proofs of compliance without giving up one's privacy;
Direct integration into traditional banking
Forward enterprise financing of security tokens and availability of said tokens on decentralized trading venues available only to accredited investors;
Galactica Network as a platform for TradFi interactions of arbitrary complexity:
Interbank liquidity pools accessible only to registered financial institutions and their institutional clients;
Institutional DeFi with programmable compliance, such as complex derivatives only available to subaccounts of institutional accounts of various regulated financial institutions with 15% Tier 1 capital ratios;
Ability to put up Real World Assets (RWA) as collateral:
A major use case not attainable in non-reputation augmented web3: <100% collateral rates for users with certain history of transactions and social interactions.
DeFi where terms of interactions are different for every user depending on one's web3 footprint.
Dynamic collateral rates for users depending on their credit history.
Dynamic access to DApps depending on any dimension of one's Web3 footprint, such as being an early adopter an LP in a DApp enables access to a 0% collateral pool in a different DApp.
zkKYC massively increases the cost of Sybil attacks, while not requiring disclosure of personal data.
Primitives like quadratic voting and quadratic funding can now be realized natively (see meritocratic governance).
Karma of one's on-chain social media account now has relevance due to the existence of Persistent Identities. As time goes by, web3 footprint grows enabling further account heterogeneity.
The use cases for journalism are especially intriguing as a reporter under this system should have a social score of accuracy/quality of journalism, while the same score could be aggregated across journalists of a given media outlet.
Selecting only individuals who have attended particular hackathons and have positive attestations to have veto rights within a developers DAO.
One can program a dynamic whitelist of accounts (closest friends from decentralized social network, DAOs that one interacts with the most, etc.) that can restore one's private keys.
This practice is known to reduce moral hazard among other things, yet it involves highly subjective evaluation/pricing phase. Reputation-weighted anonymous votings can solve the oracle problem.
Projects that favor decentralization in governance and economic power could employ quadratic funding and voting mechanisms that are well known to be extremely vulnerable to Sybil attacks;
Sufficient karma across social media DApps and cryptography-oriented forums enable one to gain higher voting power in cryptography related votes.
User merits build up one's reputation over time. Those adept in applied cryptography are more likely to have an educated opinion when voting on a respective topic. Hence, their VP should be higher.
Through contingent transactions and zkCertificates, one can achieve web2 levels of compliance, all automated and composable:
A user interacting with a perpetual products DEX only contingent upon one being over 18 years of age and being categorized as an Accredited Investor;
A user interacting with a DApp only contingent upon one not being a citizen of a prohibited jurisdiction;
Compliant privacy roll-ups and DApps whereby users can retain the privacy of transactions without compromising compliance.
Heterogeneous DeFi for heterogeneous human profiles:
Creating a staking DApp with yield boosters for residents of a certain jurisdiction (i.e. affected by a natural disaster or famine);
A DAO registered in an offshore jurisdiction managing a platform that excludes residents of said jurisdiction;
Fast generation of proofs that all the accounts registered under one's name have only interacted with liquidity of KYC'ed users without revealing any other information.
One can generate programmable proofs of compliance without giving up one's privacy;
Direct integration into traditional banking
Forward enterprise financing of security tokens and availability of said tokens on decentralized trading venues available only to accredited investors;
Galactica Network as a platform for TradFi interactions of arbitrary complexity:
Interbank liquidity pools accessible only to registered financial institutions and their institutional clients;
Institutional DeFi with programmable compliance, such as complex derivatives only available to subaccounts of institutional accounts of various regulated financial institutions with 15% Tier 1 capital ratios;
Ability to put up Real World Assets (RWA) as collateral:
A major use case not attainable in non-reputation augmented web3: <100% collateral rates for users with certain history of transactions and social interactions.
DeFi where terms of interactions are different for every user depending on one's web3 footprint.
Dynamic collateral rates for users depending on their credit history.
Dynamic access to DApps depending on any dimension of one's Web3 footprint, such as being an early adopter an LP in a DApp enables access to a 0% collateral pool in a different DApp.
zkKYC massively increases the cost of Sybil attacks, while not requiring disclosure of personal data.
Primitives like quadratic voting and quadratic funding can now be realized natively (see meritocratic governance).
Karma of one's on-chain social media account now has relevance due to the existence of Persistent Identities. As time goes by, web3 footprint grows enabling further account heterogeneity.
The use cases for journalism are especially intriguing as a reporter under this system should have a social score of accuracy/quality of journalism, while the same score could be aggregated across journalists of a given media outlet.
Selecting only individuals who have attended particular hackathons and have positive attestations to have veto rights within a developers DAO.
One can program a dynamic whitelist of accounts (closest friends from decentralized social network, DAOs that one interacts with the most, etc.) that can restore one's private keys.
This practice is known to reduce moral hazard among other things, yet it involves highly subjective evaluation/pricing phase. Reputation-weighted anonymous votings can solve the oracle problem.
Projects that favor decentralization in governance and economic power could employ quadratic funding and voting mechanisms that are well known to be extremely vulnerable to Sybil attacks;
Sufficient karma across social media DApps and cryptography-oriented forums enable one to gain higher voting power in cryptography related votes.
User merits build up one's reputation over time. Those adept in applied cryptography are more likely to have an educated opinion when voting on a respective topic. Hence, their VP should be higher.
Through contingent transactions and zkCertificates, one can achieve web2 levels of compliance, all automated and composable:
A user interacting with a perpetual products DEX only contingent upon one being over 18 years of age and being categorized as an Accredited Investor;
A user interacting with a DApp only contingent upon one not being a citizen of a prohibited jurisdiction;
Compliant privacy roll-ups and DApps whereby users can retain the privacy of transactions without compromising compliance.
Heterogeneous DeFi for heterogeneous human profiles:
Creating a staking DApp with yield boosters for residents of a certain jurisdiction (i.e. affected by a natural disaster or famine);
A DAO registered in an offshore jurisdiction managing a platform that excludes residents of said jurisdiction;
Fast generation of proofs that all the accounts registered under one's name have only interacted with liquidity of KYC'ed users without revealing any other information.
One can generate programmable proofs of compliance without giving up one's privacy;
Direct integration into traditional banking
Forward enterprise financing of security tokens and availability of said tokens on decentralized trading venues available only to accredited investors;
Galactica Network as a platform for TradFi interactions of arbitrary complexity:
Interbank liquidity pools accessible only to registered financial institutions and their institutional clients;
Institutional DeFi with programmable compliance, such as complex derivatives only available to subaccounts of institutional accounts of various regulated financial institutions with 15% Tier 1 capital ratios;
Ability to put up Real World Assets (RWA) as collateral:
A major use case not attainable in non-reputation augmented web3: <100% collateral rates for users with certain history of transactions and social interactions.
DeFi where terms of interactions are different for every user depending on one's web3 footprint.
Dynamic collateral rates for users depending on their credit history.
Dynamic access to DApps depending on any dimension of one's Web3 footprint, such as being an early adopter an LP in a DApp enables access to a 0% collateral pool in a different DApp.
zkKYC massively increases the cost of Sybil attacks, while not requiring disclosure of personal data.
Primitives like quadratic voting and quadratic funding can now be realized natively (see meritocratic governance).
Karma of one's on-chain social media account now has relevance due to the existence of Persistent Identities. As time goes by, web3 footprint grows enabling further account heterogeneity.
The use cases for journalism are especially intriguing as a reporter under this system should have a social score of accuracy/quality of journalism, while the same score could be aggregated across journalists of a given media outlet.
Selecting only individuals who have attended particular hackathons and have positive attestations to have veto rights within a developers DAO.
One can program a dynamic whitelist of accounts (closest friends from decentralized social network, DAOs that one interacts with the most, etc.) that can restore one's private keys.
This practice is known to reduce moral hazard among other things, yet it involves highly subjective evaluation/pricing phase. Reputation-weighted anonymous votings can solve the oracle problem.
Projects that favor decentralization in governance and economic power could employ quadratic funding and voting mechanisms that are well known to be extremely vulnerable to Sybil attacks;
Sufficient karma across social media DApps and cryptography-oriented forums enable one to gain higher voting power in cryptography related votes.
User merits build up one's reputation over time. Those adept in applied cryptography are more likely to have an educated opinion when voting on a respective topic. Hence, their VP should be higher.
