Finance · 12 July 2022

What is a Blockchain SMART Score?

SMART is a patent-pending address scoring system that allows any blockchain to self-regulate easily and effectively by incentivising good and penalising bad behaviour of participants.

Based on the analysis of millions of transactions, Oceidon’s SMART issues a score to every blockchain wallet. This allows users to see how they compare to other blockchain participants with the ability to check any other address for its score as well.

1. What is the problem we are trying to solve?

Blockchain data is readily available but not contextually actionable. Getting useful meaning from an overwhelming amount of blockchain data is costly, time consuming, and difficult. While users can easily see transactions, they cannot easily determine what those transactions mean within the context of specific circumstances. This holds especially true if users desire to gather deeper insights into the intentions, desires, motivations, and methods of the entities making blockchain transactions.

2. Why does the problem exist?

Data is not presented in a useable format.

For all intents and purposes, blockchain data is not easily usable in its raw state. It needs to be “translated” into user-friendly formats. Blockchain explorers do a great job translating and displaying transactions. However, they arbitrarily filter out important data and they do not interpret the aggregated information into actionable intelligence.

Data is anonymous.

Unlike traditional credit scores and other off-chain analytical representations, blockchain does not have the benefit of personal identity data to generate a baseline profile. Blockchain wallets are anonymous. This data, therefore, lacks built-in context.

Historical data is present but difficult to access.

Not only is blockchain data presented in a difficult format, but access to historical data is difficult to retrieve and requires access to specialised and costly archive nodes and archive information indexing systems.

The amount of data is overwhelming.

Even when the above obstacles are addressed, the sheer amount of data to be sifted and filtered before actual useful information is retrieved is astronomical, especially when well-used and developed blockchains are in question.

Organisations that rely on blockchain infrastructure to conduct business operate on incomplete data that results in decisions being made on assumptions and generalisations.

3. How does our solution address this problem?

Oceidon SMART algorithms sift through relevant on-chain transactions, they analyse and summarise the results on a per address granularity. This patent-pending system and methodology allows for complete, swift, and contextually relevant information to be derived from murky transaction records. Through SMART identification and analysis of on-chain behaviour, blockchain addresses take on relatable and understandable characteristics, transforming into “personas”. Each of these “personas” receives a score based on the criteria one is looking to evaluate.

It is the capability to mesh all the data and sensors to give the user a simplified, prioritised display of knowledge of the space. No data or information but knowledge of what is out there in the “battlespace”.

4. Articulate the proof that our solution does what we say it does.

Actions speak louder than words. By creating behaviour profiles of blockchain addresses we can now ask questions of the blockchain in relation to those profiles. We can ask simple questions: “How often does the “persona” participate in airdrops?”

But what is more important we can ask much more complex questions: “Is our blockchain offering attractive to our clientele, how brand loyal are the people that interact with our project?”

What kind of “personas” is our project attracting?

5. Example use case

Incentivising Behaviour (Social Scoring)

Projects and eco-systems that wish to incentivise select behaviour can use SMART to generate a score metric reflecting a particular user profile. Blockchain participants interested in the incentives offered can then have a goal metric to aspire to. Such incentives could be APY levels available depending on the score achieved by a particular address.

Smart Contract Gating

Projects can now weed out such behaviour by integrating our patent-pending SMART score into their launch process and beyond. Whitelists can be purged of addresses that do not meet SMART score threshold criteria.


 
TAGS:

ABOUT THE EXPERT

Our founders bring decades of experience to Oceidon. Oceidon focuses on problems that need solutions. We do not build tech for the sake of building tech. Our activities focus on developing impactful solutions that enhance and help commerce.

Strategy