Binance has officially launched “Proof-of-Reputation,” a new global on-chain identity system designed to significantly reduce fraud, improve platform trust, and enable risk-scored transactions across the wider Web3 ecosystem. The system assigns dynamic reputation scores to individual wallet addresses by analyzing complex on-chain data patterns. The scoring factors include transaction history, staking behavior, and, crucially, known exposure to scam or fraudulent activities.
The rollout of this decentralized identity scoring system comes at a strategic time, as regulators worldwide, including those in the EU and the US, are increasingly pushing for better identity standards and safer crypto user experiences following a year marked by high-profile exploits and scams. Binance states that its system allows various platforms—such as exchanges, Decentralized Finance (DeFi) protocols, and Non-Fungible Token (NFT) marketplaces—to automatically flag potentially risky accounts and transactions without compromising user privacy.
To accelerate broad adoption, Binance plans to provide open access to the scoring APIs (Application Programming Interfaces) to external developers in early 2026. This open integration will enable the reputation scores to be utilized across multiple blockchain networks, standardizing a new layer of security and trust across the multichain environment.
