What is INK Protocol?
Ink Protocol token (XNK) is a decentralized reputation and payment system devised by Listia. It has the potential to ‘create, disrupt and adopt world marketplaces by publicly sharing reputation information on the Ethereum blockchain.’ XNK can be used in all transactions which are backed by blockchain but more specifically peer to peer (p2p) transactions, independent of a marketplace. Each seller is able to earn a reputation for every completed transaction as the buyer is able to leave feedback about the transaction such as rating and comments which is then stored on the Ethereum blockchain. Ink protocol supports decentralized escrow for secure payments, third-party dispute resolution at low transaction costs.
- Benefits sellers: Ink can be integrated into new/existing marketplaces and marketplaces that don’t normally handle direct payments such as Craigslist, Gumtree and Facebook marketplace. Once sellers have used Ink Protocol a handle full of times and completed a few transactions, their reputation will build so the buyer is more likely to trust the seller when entering a transaction. For new marketplaces, reputation from old marketplaces can be used because of the benefits of decentralized feedback and reputation for the seller. Meaning the seller doesn’t have to waste time building reputation in the new marketplace as it already exists and can be carried forward making it easier to sell whatever good or service is provided. Buyers can also view sellers reputation from multiple previous marketplaces so that trust can be built instantly determining whether a transaction will be completed. Payments can be made using XNK and converted easily to and from fiat currencies such as USD.
- Listia Marketplace has already incorporated XNK: Listia marketplace was created in 2009 and, to date, has 10 million registered users, has exchanged 100 million items raising over $11 million in venture capital. Listia used to use a centralized virtual currency called Listia credit but has now made existing users convert their credits to XNK which has boosted Ink Protocol for its initial usage, building a reputation for the platform immediately. Listia has also created an app called Ink Pay which is a standalone payments app for marketplaces that do not usually handle direct payments such as Craigslist. This large-scale adoption for a payment system and apps used at launch can mean INK has been electrified with huge growth potential in any p2p markets.
- Decentralised Feedback: After every completed transaction, the buyer can leave feedback i.e. a rating and comments about the specific transaction which is then stored on the Ethereum blockchain. This can be seen by anyone who has access to the public Ethereum blockchain and Ink smart contract so that anyone is able to search for feedback history for a specific seller, determining his/her trustworthiness in order to fulfill the transaction.
- Decentralised Reputation: Reputation indicates the aggregation of the seller’s feedback + transaction history from all previous marketplaces. Individual sellers feedback and transaction history can be viewed within the Smart Contract and the buyer can interpret a reputation score based on that. ‘Ink does not include a specific algorithm or calculation method to compute this score, as it should be marketplace specific or app-specific.’
- Decentralised escrow with third-party dispute resolution: Ink encourages decentralized escrow establishing a safe approach to a transaction method between buyers and sellers. ‘When a buyer pays, the Ink Tokens are held by the contract until the buyer indicates that the items have been received. At that point, the tokens are released to the seller and the transaction is finalized.’ The seller must gamble his reputation for the tokens until the buyer receives their good or service. However, if there is a complication in the p2p transaction such as damaged good received a third party smart contract mediator can help to resolve the transaction. ‘Individuals can also set up their own contracts and provide mediation services to others.’
INK Protocol Information
- Website: https://paywithink.com
- Whitepaper: https://paywithink.com/wp-content/uploads/2018/02/Ink_Protocol_Whitepaper_V8_Listia_Inc.pdf
Bounty0x profile: @jeremycole
Disclaimer: All information on this post is made to educate our readers. Don’t invest in any project unless you’re confident about its capabilities and do so at your own risk.
- Decentralised feedback/reputation with third party dispute resolution
- Already used by Listia and easily integrated into other p2p markets
- Payments can be made using XNK and easily converted into fiat currencies
- No/low transaction fees
- Ink app is still yet to be established with many p2p markets which don’t usually handle direct payments