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### Oracles {#oracles}
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Oracles import off-chain data onto the blockchain in a permissionless and decentralized way. Getting this data on-chain enables dapps to be reactive to real-world phenomena such as price fluctuations in real-world assets, events in off-chain apps, or even changes in the weather.
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Oracles import offchain data onto the blockchain in a permissionless and decentralized way. Getting this data onchain enables dapps to be reactive to real-world phenomena such as price fluctuations in real-world assets, events in offchain apps, or even changes in the weather.
Copy file name to clipboardExpand all lines: public/content/dao/index.md
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@@ -19,7 +19,7 @@ A DAO is a collectively-owned organization working towards a shared mission.
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DAOs allow us to work with like-minded folks around the globe without trusting a benevolent leader to manage the funds or operations. There is no CEO who can spend funds on a whim or CFO who can manipulate the books. Instead, blockchain-based rules baked into the code define how the organization works and how funds are spent.
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They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice, and everything happens transparently [on-chain](/glossary/#on-chain).
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They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice, and everything happens transparently [onchain](/glossary/#onchain).
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## Why do we need DAOs? {#why-dao}
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Reputation represents proof of participation and grants voting power in the DAO. Unlike token or share-based membership, reputation-based DAOs don't transfer ownership to contributors. Reputation cannot be bought, transferred or delegated; DAO members must earn reputation through participation. On-chain voting is permissionless and prospective members can freely submit proposals to join the DAO and request to receive reputation and tokens as a reward in exchange for their contributions.
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Reputation represents proof of participation and grants voting power in the DAO. Unlike token or share-based membership, reputation-based DAOs don't transfer ownership to contributors. Reputation cannot be bought, transferred or delegated; DAO members must earn reputation through participation. Onchain voting is permissionless and prospective members can freely submit proposals to join the DAO and request to receive reputation and tokens as a reward in exchange for their contributions.
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_Typically used for decentralized development and governance of protocols and [dapps](/glossary/#dapp), but also well suited to a diverse set of organizations like charities, worker collectives, investment clubs, etc._
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### 3. Voting and online communities {#voting-and-online-communities}
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Online voting and social media are two novel applications for decentralized identity. Online voting schemes are susceptible to manipulation, especially if malicious actors create false identities to vote. Asking individuals to present on-chain attestations can improve the integrity of online voting processes.
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Online voting and social media are two novel applications for decentralized identity. Online voting schemes are susceptible to manipulation, especially if malicious actors create false identities to vote. Asking individuals to present onchain attestations can improve the integrity of online voting processes.
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Decentralized identity can help create online communities that are free of fake accounts. For example, each user might have to authenticate their identity using an on-chain identity system, like the Ethereum Name Service, reducing the possibility of bots.
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Decentralized identity can help create online communities that are free of fake accounts. For example, each user might have to authenticate their identity using an onchain identity system, like the Ethereum Name Service, reducing the possibility of bots.
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### 4. Anti-Sybil protection {#sybil-protection}
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How attestation information is stored and retrieved in an Ethereum-based identity ecosystem is different from traditional identity management. Here is an overview of the various approaches to issuing, storing, and verifying attestations in decentralized identity systems:
One concern with storing attestations on-chain is that they might contain information individuals want to keep private. The public nature of the Ethereum blockchain makes it unattractive to store such attestations.
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One concern with storing attestations onchain is that they might contain information individuals want to keep private. The public nature of the Ethereum blockchain makes it unattractive to store such attestations.
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The solution is to issue attestations, held by users off-chain in digital wallets, but signed with the issuer's DID stored on-chain. These attestations are encoded as [JSON Web Tokens](https://en.wikipedia.org/wiki/JSON_Web_Token) and contain the issuer's digital signature—which allows for easy verification of off-chain claims.
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The solution is to issue attestations, held by users offchain in digital wallets, but signed with the issuer's DID stored onchain. These attestations are encoded as [JSON Web Tokens](https://en.wikipedia.org/wiki/JSON_Web_Token) and contain the issuer's digital signature—which allows for easy verification of offchain claims.
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Here's an hypothetical scenario to explain off-chain attestations:
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Here's an hypothetical scenario to explain offchain attestations:
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1. A university (the issuer) generates an attestation (a digital academic certificate), signs with its keys, and issues it to Bob (the identity owner).
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2. Bob applies for a job and wants to prove his academic qualifications to an employer, so he shares the attestation from his mobile wallet. The company (the verifier) can then confirm the validity of the attestation by checking the issuer's DID (i.e., its public key on Ethereum).
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### Off-chain attestations with persistent access {#offchain-attestations-with-persistent-access}
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### Offchain attestations with persistent access {#offchain-attestations-with-persistent-access}
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Under this arrangement attestations are transformed into JSON files and stored off-chain (ideally on a [decentralized cloud storage](/developers/docs/storage/) platform, such as IPFS or Swarm). However, a [hash](/glossary/#hash) of the JSON file is stored on-chain and linked to a DID via an on-chain registry. The associated DID could either be that of the issuer of the attestation or the recipient.
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Under this arrangement attestations are transformed into JSON files and stored offchain (ideally on a [decentralized cloud storage](/developers/docs/storage/) platform, such as IPFS or Swarm). However, a [hash](/glossary/#hash) of the JSON file is stored onchain and linked to a DID via an onchain registry. The associated DID could either be that of the issuer of the attestation or the recipient.
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This approach enables attestations to gain blockchain-based persistence, while keeping claims information encrypted and verifiable. It also allows for selective disclosure since the holder of the private key can decrypt the information.
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### On-chain attestations {#onchain-attestations}
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### Onchain attestations {#onchain-attestations}
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On-chain attestations are held in [smart contracts](/glossary/#smart-contract) on the Ethereum blockchain. The smart contract (acting as a registry) will map an attestation to a corresponding on-chain decentralized identifier (a public key).
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Onchain attestations are held in [smart contracts](/glossary/#smart-contract) on the Ethereum blockchain. The smart contract (acting as a registry) will map an attestation to a corresponding onchain decentralized identifier (a public key).
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Here's an example to show how on-chain attestations might work in practice:
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Here's an example to show how onchain attestations might work in practice:
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1. A company (XYZ Corp) plans to sell ownership shares using a smart contract but only wants buyers that have completed a background check.
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2. XYZ Corp can have the company performing background checks to issue on-chain attestations on Ethereum. This attestation certifies that an individual has passed the background check without exposing any personal information.
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2. XYZ Corp can have the company performing background checks to issue onchain attestations on Ethereum. This attestation certifies that an individual has passed the background check without exposing any personal information.
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3. The smart contract selling shares can check the registry contract for the identities of screened buyers, making it possible for the smart contract to determine who is permitted to buy shares or not.
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### Soulbound tokens and identity {#soulbound}
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[Soulbound tokens](https://vitalik.eth.limo/general/2022/01/26/soulbound.html) ([non-transferable NFTs](/glossary/#nft)) could be used to collect information unique to a specific wallet. This effectively creates a unique on-chain identity bound to a particular Ethereum address that could include tokens representing achievements (e.g. finishing some specific online course or passing a threshold score in a game) or community participation.
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[Soulbound tokens](https://vitalik.eth.limo/general/2022/01/26/soulbound.html) ([non-transferable NFTs](/glossary/#nft)) could be used to collect information unique to a specific wallet. This effectively creates a unique onchain identity bound to a particular Ethereum address that could include tokens representing achievements (e.g. finishing some specific online course or passing a threshold score in a game) or community participation.
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## Use decentralized identity {#use-decentralized-identity}
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There are many ambitious projects using Ethereum as a foundation for decentralized identity solutions:
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-**[Ethereum Name Service (ENS)](https://ens.domains/)** - _A decentralized naming system for on-chain, machine-readable identifiers, like, Ethereum wallet addresses, content hashes, and metadata._
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-**[Ethereum Name Service (ENS)](https://ens.domains/)** - _A decentralized naming system for onchain, machine-readable identifiers, like, Ethereum wallet addresses, content hashes, and metadata._
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-**[SpruceID](https://www.spruceid.com/)** - _A decentralized identity project which allows users to control digital identity with Ethereum accounts and ENS profiles instead of relying on third-party services._
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-**[Ethereum Attestation Service (EAS)](https://attest.sh/)** - _A decentralized ledger/protocol for making on-chain or off-chain attestations about anything._
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-**[Ethereum Attestation Service (EAS)](https://attest.sh/)** - _A decentralized ledger/protocol for making onchain or offchain attestations about anything._
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-**[Proof of Humanity](https://www.proofofhumanity.id)** - _Proof of Humanity (or PoH) is a social identity verification system built on Ethereum._
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-**[BrightID](https://www.brightid.org/)** - _A decentralized, open-source social identity network seeking to reform identity verification through the creation and analysis of a social graph._
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-**[walt.id](https://walt.id)** — _Open source decentralized identity and wallet infrastructure that enables developers and organizations to leverage self-sovereign identity and NFTs/SBTs._
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-[Decentralized Identity (Bonus Livestream Session)](https://www.youtube.com/watch?v=ySHNB1za_SE&t=539s) — _A great explainer video on decentralized identity by Andreas Antonopolous_
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-[Sign In with Ethereum and Decentralized Identity with Ceramic, IDX, React, and 3ID Connect](https://www.youtube.com/watch?v=t9gWZYJxk7c) — _YouTube tutorial on building out an identity management system for creating, reading, and updating a user's profile using their Ethereum wallet by Nader Dabit_
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-[BrightID - Decentralized Identity on Ethereum](https://www.youtube.com/watch?v=D3DbMFYGRoM) — _Bankless podcast episode discussing BrightID, a decentralized identity solution for Ethereum_
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-[The Off Chain Internet: Decentralized Identity & Verifiable Credentials](https://www.youtube.com/watch?v=EZ_Bb6j87mg) — EthDenver 2022 presentation by Evin McMullen
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-[The Offchain Internet: Decentralized Identity & Verifiable Credentials](https://www.youtube.com/watch?v=EZ_Bb6j87mg) — EthDenver 2022 presentation by Evin McMullen
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-[Verifiable Credentials Explained](https://www.youtube.com/watch?v=ce1IdSr-Kig) - YouTube explainer video with demo by Tamino Baumann
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|**New models for publishing** can be developed that use Web3 primitives for trust, transparency and universal access. | You publish through established pathways frequently acknowledged as **inefficient, biased and exploitative**. |
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| You can **earn tokens and reputation for peer-reviewing** work. | Your **peer-review work is unpaid**, benefiting for-profit publishers. |
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|**You own the intellectual property (IP)** you generate and distribute it according to transparent terms. |**Your home institution owns the IP** you generate. Access to the IP is not transparent. |
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|**Sharing all of the research**, including the data from unsuccessful efforts, by having all steps on-chain. |**Publication bias** means that researchers are more likely to share experiments that had successful results. |
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|**Sharing all of the research**, including the data from unsuccessful efforts, by having all steps onchain. |**Publication bias** means that researchers are more likely to share experiments that had successful results. |
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## Ethereum and DeSci {#ethereum-and-desci}
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In the same way that NFTs can pass revenue for future transactions back to the original creator, you can establish transparent value attribution chains to reward researchers, governing bodies (like DAOs), or even the subjects whose data is collected.
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[IP-NFTs](https://medium.com/molecule-blog/ip-nfts-for-researchers-a-new-biomedical-funding-paradigm-91312d8d92e6) can also function as a key to a decentralized data repository of the research experiments being undertaken, and plug into NFT and [DeFi](/glossary/#defi) financialization (from fractionalization to lending pools and value appraisal). It also allows natively on-chain entities such as DAOs like [VitaDAO](https://www.vitadao.com/) to conduct research directly on-chain.
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[IP-NFTs](https://medium.com/molecule-blog/ip-nfts-for-researchers-a-new-biomedical-funding-paradigm-91312d8d92e6) can also function as a key to a decentralized data repository of the research experiments being undertaken, and plug into NFT and [DeFi](/glossary/#defi) financialization (from fractionalization to lending pools and value appraisal). It also allows natively onchain entities such as DAOs like [VitaDAO](https://www.vitadao.com/) to conduct research directly onchain.
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The advent of non-transferable ["soulbound" tokens](https://vitalik.eth.limo/general/2022/01/26/soulbound.html) may also play an important role in DeSci by allowing individuals to prove their experience and credentials linked to their Ethereum address.
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### Data storage, access and architecture {#data-storage}
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