Socious Announces the Launch of Decentralized Referral System

Socious launches software to combat online fraud attacks by leveraging blockchain technology to ensure secure, automated, and transparent referrals.

In the ever-evolving landscape of Decentralized Autonomous Organizations (DAOs), one critical challenge remains—referral fraud. According to Statista, referral fraud accounts for a staggering 21% of all fraud attacks faced by online merchants worldwide. Recognizing the gravity of this issue, Socious is excited to announce the release of its new Decentralized Referral System designed to address and mitigate this problem effectively.

Why a Decentralized Referral System?

DAOs rely heavily on referral systems to grow their communities, incentivize participation, and foster a sense of shared purpose. However, traditional referral systems are susceptible to manipulation and fraud, posing significant risks to the integrity and sustainability of these organizations.

Socious's decentralized referral system introduces a robust, twofold solution including these two aspects:

1. Secured by Decentralized Identifiers (”DID”-unique identifiers that act as an identifying address on blockchain and are independent of any organization): Ensuring that each person can only have one account, thereby eliminating the possibility of self-referral. Learn more about DID’s here.

2. Automated by Smart Contracts: Utilizing blockchain technology to make data manipulation difficult, thus preventing fraud.

This innovative approach not only enhances security but also automates the referral process, making it seamless and efficient for users.

How Does It Work?

The system is designed to reward both referrers and referees. Here’s a breakdown of the mechanics:

  • Referrer Incentive: When a user (Umaya) refers another individual (Toshi) or an organization (OceanProtection) to Socious, Umaya receives 1% of Toshi's earnings on Socious for one year. Similarly, Umaya receives 1% of every invoice amount of OceanProtection for one year.
  • Referee Benefit: Toshi and OceanProtection receive a 50% discount on Socious fees for the first month.

This system ensures that referral bonuses are calculated and distributed automatically through smart contracts, providing transparency and trust.

Integration and Open Source

To further enhance the security and integrity of the referral process, Socious will integrate Veriff for identity verification. This ensures that all participants in the referral system are verified, adding a layer of security.

Moreover, Socious is committed to the principles of decentralization and transparency. As part of this commitment, the referral contracts will be open source, allowing the community to review, use, and contribute to the codebase.

How to use the Referral System

For those interested in utilizing our Decentralized Referral System, this resource provides a step by step tutorial on how to refer potential talent, and start earning your rewards!

The new decentralized referral system by Socious marks a significant step forward in combating referral fraud and enhancing the integrity of referral processes within DAOs. By leveraging the power of blockchain technology and smart contracts, Socious is paving the way for a more secure, transparent, and efficient referral ecosystem. Stay tuned for more updates as we improve the ways communities grow and thrive in the decentralized world.

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