Bitcoin Company Bitrated Tries to Restore Trust in Bitcoin

Bitrated, a startup bitcoin company based in Israel, is working to bring trust back to bitcoin after the cryptocurrency has been mired by negativity in recent years. As a cryptocurrency, the lack of regulation for bitcoin has been seen as both an advantage and disadvantage.

For one, the anonymity of transactions has been seen as a more secure approach for payments by some while others see it as a change to participate in illegal dealings. The use of the blockchain as a ledger for transactions, which is the unique selling point of bitcoin, has also been frequently questioned.

Bitcoin Company Proposals

Some say that exposing the parties involved in transactions and increasing regulation on the bitcoin industry could solve the security threats while others think that this could be damaging to the very nature of the cryptocurrency. Bitrated aims to create a trust platform that could upgrade the security of bitcoins while keeping transactions anonymous.

Currently, Bitrated runs a reputation management system, a multi-signature verification for payments, and an arbitrated marketplace that allows for payment reversals. These components are modelled based on a web of trust, which involves a social graph of relationships among its users.

The bitcoin company also makes use of trust scores called Bitrating in order to have metrics for how trustworthy users are. This employs an algorithm that uses information from the client’s social media profile, such as Reddit, Twitter, and LinkedIn.

Founder Nadav Ivgi says that his bitcoin company is hoping to leverage existing social media accounts into adding security features and reputability to transactions. “Some of that information is about identifying throw-away sockpuppet accounts, some is about verifying the user identity – by leveraging the fact that services like PayPal and Coinbase already verify the user’s identity and expose it via their API – and some is more likely related to trustworthiness,” he explained.

  • cohagen

    Israel, one of the most disputed, dangerous and chaotic places on the planet, not a good place to set up shop and claim stuff like trust and solid foundation LMFAO!

  • John Beamer

    and what is to stop Bitrated from stealing funds on their site? Arbitration doesnt work what if the arbiter is the buyer. BitHalo has two party escrow and decentralized markets, a much better way, no trust required.

    • Elwar

      multisig transactions…Bitrated sees no funds from a transaction

      • John Beamer

        it uses 2 of 3. All it takes is for the arbiter to pose as the buyer or
        seller. Collusion allows for theft. Also agents are not unbiased. How can
        you determine who is lying? This is why people don’t use Ebay, because
        Ebay is unable to arbitrate. Why use third parties on Bitcoin that was
        created to avoid third parties.

        • Elwar

          Yes, 2 of 3…so Bitrated can’t steal funds from their site.

          • John Beamer

            if they are not the arbiter then yes. So they are trying to build a web of trust based on escrows that they monitor… interesting. I’m just not a fan of third parties, but some people are. Best of luck to them.

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