As Web3 expands its potential past finance, Polkadot is aiming to capitalize on the motion. The community not too long ago launched a framework to assist any geographically focused group of customers distribute, create, and use their digital neighborhood tokens.

Named Encointer, Polkadot not too long ago launched the platform on Kusama, serving to it acquire the second common-good parachain slot. Customers can discover extra particulars about value predictions within the linked article.

Encointer permits manufacturers to distribute their tokens usually with none price and authorities interruption. The method can facilitate native financial exercise inside communities the place customers have merchandise and abilities to share however lack the funds to commerce.

Furthermore, for the reason that platform supplies an choice to pay charges in a token related to native shopping for energy, it might probably turn out to be the primary stepping stone for Web3’s international adoption. Nevertheless, such techniques face frequent points, with the first one being – anybody can be a part of a public, permissionless community.

Whereas it permits pseudonymity and accessibility, if everyone seems to be nameless, customers can be a part of a number of occasions. Such phenomena could cause disruptions inside the neighborhood. For instance, beneath such circumstances, somebody can obtain their digital neighborhood token allocation a number of occasions beneath completely different identities.

That’s the reason constructing a singular proof of personhood or distinctive id system is a extreme problem. Encointer addressed the problem with a singular method by stipulating a scenario the place each particular person is prepared to show their id utilizing a bodily key-signing occasion. 

These occasions are held usually and are performed on the identical time internationally. It entails a random gathering of customers at completely different areas inside the agreed boundaries. The requirement of location and personhood is what makes Encointer safe and distinctive. The platform makes a Sybil assault unattainable to execute.

That’s the reason Polkadot holds ample worth proposition within the business whereas boosting the Kusama ecosystem too.