Reputation Protocol for the Internet of Trust - Conceptual Whitepaper

30 Pages Posted: 8 Nov 2018

See all articles by Craig Calcaterra

Craig Calcaterra

Department of Mathematics, Metropolitan State University

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Gopinath Sivalingam


Date Written: October 15, 2018


Internet-based platform businesses outcompete traditional brick and mortar business on nearly all measures of comparison. Similarly, distributed ledger technology (DLT) businesses depend on the internet and show a lot of promise in multiple business verticals. Yet, internet-based platform businesses and DLT businesses have not reached their full potential. Multiple studies, data, and anecdotal evidence suggest that one core factor that undermines their evolution is the worldwide decreasing trust in the internet and under-developed trust in decentralized technology solutions.

Semada and the Semada Research Institute (SRI) believe that a decentralized reputation protocol can reverse that trend to increase trust in the internet and increase decentralized technology adoption. We call this solution the Semada Internet of Trust - a network that uniquely captures real world information, context, and value in cryptographic transactions generating transparently validated consensus on truth. Through the creation of unconscious and conscious trust in decentralized networks adoption becomes a desirable outcome and increases.

Semada has a unique suite of protocols and a stable currency that combined enable commerce on the decentralized web. Semada’s core architecture continually resolves the blockchain trilemma by combining - a) decentralization, b) scale, and c) security. Semada’s version of proof-of-stake - a.k.a. the Anchor Protocol - is a unique consensus algorithm that enables block propagation through reputation staking and verification. Through its Sockpuppet Protocol, Semada is resilient to deceptive fake internet identities, so-called sockpuppet accounts, and 51% attacks. Through its Persona Protocol, Semada facilitates digital sovereignty, self sovereign identity, privacy, security and decentralized reputation. Trust enabling reputation can only be earned over time on the Semada network.

The Semada Internet of Trust creates a framework of trust through reputation and incentive optimization that enables market conditions for unprecedented business models and market capitalization while reducing adverse selection and moral hazards for transacting parties. The network will provide information symmetry while reducing transaction cost for market participants. Businesses will leverage the platform to achieve efficiencies across verticals.

Keywords: Semada Research Institute, distributed ledger technology, decentralized web, trust, reputation, protocols, sockpuppet resistance, decentralization

JEL Classification: K20, K23, K32, L43, L5, O31, O32

Suggested Citation

Calcaterra, Craig and Kaal, Wulf A. and Sivalingam, Gopinath, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (October 15, 2018). U of St. Thomas (Minnesota) Legal Studies Research Paper No. 18-23. Available at SSRN: or

Craig Calcaterra

Department of Mathematics, Metropolitan State University ( email )

700 East Seventh Street
St. Paul, MN 55106
United States

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Gopinath Sivalingam

Independent ( email )

No Address Available

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