With so many advancements in the cryptocurrency industry, it should come as no surprise that token-curated registries (TCR) are the latest addition. These registries, like the rest of blockchain, are completely decentralized, and it should be able to eliminate a lot of problems that presently happen with lists, which is the product of a TCR.
For a list to be effective and helpful, it has to be organized in an easy-to-comprehend way. For example, someone can write an informative list, like one of local colleges in the area, or it can be something more entertaining, like the top movies of all time. However, the reason that these lists would be helpful is their ability to remain unchanged constantly. If someone wrote a list of the top movies of all time, and any person could put in their personal opinion without any qualifications or algorithm, the list would not be accurate or useful anymore.
The tokens on TCRs are crucial to the system on which they are used. On a TCR, the list requires the use of the internal tokens to have the right to change information, though the weight that their edits hold will be based on the value of their tokens. As long as there are people and companies that are interested in this type of list, it is easy to provide incentives for token holders to be interested in.
Token Curated Registries Variations
A TCR is a list that is already programmed with incentives for token holders, and they are entirely self-regulated. However, there are three variations that will determine what kind of TCR is needed.
Consumers want to know everything that there is to know about the products they want. They want the information and the product to both be high in quality, so they put their trust on reputable lists. By using a TCR, the risk of disappointment is reduced, because the list comes from a reputable source.
Candidates, which are also known as listees, want to get the attention of the consumers that could invest in their product. When they are listed on the TCR, they get much-needed attention and compensation that they need from customers. By even being listed on a TCR, they are given more confidence and they receive more information.
For Token Holders
Token holders, like the candidates, have a desire to make sure that the demand remains high for tokens, since the demand dictates their price. The best way to keep the demand high is with the constant creation of high-quality lists. By keeping the expertise at the level that it needs to remain, more consumers invest, which is why it is so important to maintain high-quality curated lists.
As said earlier in this article, the only way to keep a TCR functioning correctly is with incentives. Each candidate is put through a vetting process before they are considered to be put on a listing, though they can withdraw themselves at any time. Typically, this does not happen, because the candidates have to put down a deposit when they are put onto the list in the first place. To incentivize the good candidates from withdrawing, they will have to sacrifice the deposit to the token holders.
The deposit is also a way to keep potentially bad candidates from applying, because the good ones will be equally invested in their future. The perceived disadvantage for some is that token holder has the opportunity to challenge absolutely any candidate on the registry to increase their holdings. However, this provides to make the registries more value and quality, since candidates can be reviewed at any time.
The application process for being listed starts when the candidate makes their first deposit with the token, which is held onto by the company for the whole time they are listed. After submitting the application, token holders have the option to challenge it. If it remains without challenge, then the candidate is listed on the platform.
If challenged, the status will be processed by following through until the end of the challenge. A careful review is necessary to ensuring the legitimacy of the list.
How To Challenge A Candidate’s Application
Any token holder can initiate the challenge. Once the challenge starts, the platform logs the current restrictions of the registry, and the voting stage begins. The vote is open to every token holder, even if they are not involved in the challenge. After the voting process is done, part of the original deposit is given to the party that won the vote. The rest is given to the voters that were on the winning side.
Credibility Of The TCR
The biggest advantage of the TCRs is the fact that they provide credibility to any list. The various applications and incentives ensures that the entire project is self-regulated, and this prevents many attacks that are on similar systems. The entire ecosystem is setup in a way that can easily protect users from trolling, attacks, and registry poisoning.
Token Curated Registries Summary
The use of token-curated registries brings a new reputable quality to any list in the world. With a decentralized list that offers incentives to make the quality high, consumers, candidates, and token holders can all benefit in some way. If this technology picks up, it is likely that the use of TCRs will substantially increase through the years.