Bitarch (topic disclosure paid in the amount of 0.005btc)

Today I have an unusual format. In essence, this is not about answering a question, but a review of a full, detailed proposal. Therefore, I would like to split the topic into two posts. Today’s post will outline the proposal itself, and in tomorrow’s, I would like to provide a detailed overview of the topic of reputation and the construction of reputation systems. Discussion in the comments is highly welcome.

As we all understand, under ancap, the institution of reputation will play a significant role. Imagine that a person is not yet well-known in the community or wants to atone for their past “sins” by creating or restoring a reputation. There is an organization or a blockchain project to which this person can make a donation and receive in return an ID with reputation points. They can show this to other people when conducting transactions to increase trust. If they cheat, the victim can file a complaint with this system, and the fraudster will lose the reputation points for which they previously made a donation (more precisely, their ID with negative reviews will be useless for concluding deals in the future). To exclude fraud on the part of the victim, the reputation service may also require them to make a donation of a similar amount (and they will also make their own reputation ID useless if they lie and are caught). The result is a reputation system in which it is not profitable for the parties to deceive each other from the perspective of game theory. The donations received can be directed toward funding public goods (schools, hospitals, roads, science, ecology, etc.), simultaneously finally dismantling the main argument of statists against libertarians: “If a person has no insurance and no friends, who will take care of them in old age, provide medical treatment, free education for children, and so on?”.

How do you evaluate this system?