What is Cred?
Last updated
Last updated
Cred, short for Credential, is a fundamental concept in the Phi Protocol ecosystem. It's an innovative approach to representing and verifying user identity and achievements in the Web3 space.
In Phi, a Cred is defined as an NFT (Non-Fungible Token) used to illustrate a user's identity. These digital credentials serve as verifiable proof of a user's actions, achievements, or status within various blockchain ecosystems.
The primary goals of Cred in the Phi ecosystem are:
Identity Representation: To provide a means for users to showcase their Web3 identity and achievements.
Ecosystem Building: To foster a thriving identity ecosystem where every Web3 user can express themselves uniquely.
Verifiable Achievements: To create a system of trusted, verifiable credentials that represent real actions or statuses in the blockchain world.
NFT-Based: Each Cred is a unique NFT, ensuring its uniqueness and traceability on the blockchain.
Verifiable: Creds are created with specific verification mechanisms to ensure their authenticity.
Network-Specific: Creds can be tied to specific blockchain networks (e.g., Base, as seen in the provided images).
Curation System: Users can curate and collect Creds, creating a peer-to-peer network of trust and recognition.
Multiple Artworks: Creds can have multiple associated artworks, enhancing their visual appeal and collectibility.
The process of creating a Cred involves three main steps:
Set the Requirement: Define what users need to do or be to claim the Cred. For example, "Receive tokens from Optimism's first airdrop" as shown in the first image.
Select Verification Style: Choose how to verify eligible users:
Upload a CSV file (Merkle type): For fixed lists of eligible addresses.
Provide an API endpoint: For dynamic verification of eligibility.
Check and Create: Review the summary and finalize the Cred creation.
Based on the images provided, a Cred typically includes:
Basic Information: Cred ID, creation date, eligibility networks, verification type, and owner.
Curations: Information about shares, price, and unique curators.
Verifications: Details about the verifier and the verification source.
Arts: Visual representations associated with the Cred.
Creds in the Phi Protocol have an economic aspect:
Users can buy and sell shares in a Cred.
There's a curation mechanism where users can "stake" on each other's Creds.
Prices for shares follow a bonding curve, as shown in one of the provided images.
Creators receive royalties (1% in the example) from share transactions.
The protocol also takes a fee (5% in the example) from transactions.
Identity Expression: Allows users to showcase their Web3 achievements and identity.
Trust Building: Creates a network of verifiable credentials, fostering trust in the ecosystem.
Economic Incentives: Provides economic incentives for credential creation and curation.
Flexible Verification: Supports different verification methods to accommodate various use cases.
It's worth noting that even after a Cred is created, creators can continue to make edits and updates, ensuring the Cred remains relevant and accurate over time.
A key aspect of creating successful Creds is the inclusion of multiple, high-quality artworks:
Diverse Visual Representation: Ideally, a Cred should have multiple associated artworks. This allows for diverse visual representations of the achievement or status the Cred represents.
Engagement: Multiple artworks can increase user engagement, as claimants have more options to choose from to represent their achievement.
Artistic Expression: It provides an opportunity for artists and creators to express different aspects or interpretations of the Cred's meaning.
Collectibility: Various artworks can enhance the collectible nature of Creds, potentially increasing their value and appeal.
Evolving Identity: Multiple artworks allow users to change their visual representation over time, reflecting the dynamic nature of Web3 identities.
Creating high-quality Creds can be financially rewarding:
Share Curation: As seen in the images, users can buy shares in Creds. As a Cred creator, you earn a percentage (e.g., 1% royalty) from these share transactions.
Increasing Value: Well-designed Creds with meaningful verification criteria and appealing artworks can become more valuable over time, potentially increasing the value of your creator shares.
Verification Fees: If you're also acting as a verifier for your Cred, you can earn fees for performing verifications.
Artist Collaborations: By involving talented artists to create multiple artworks, you can create more desirable Creds, potentially increasing their value and your revenue.
Network Effects: Popular Creds can attract more users to the Phi Protocol, indirectly increasing the value of all your Creds.
To maximize the potential of your Creds:
Choose Meaningful Criteria: Select verification criteria that represent significant achievements or statuses in the Web3 world.
Collaborate with Artists: Work with skilled artists to create multiple, visually appealing artworks for each Cred.
Clear Description: Provide a clear, concise description of what the Cred represents and how it's verified.
Regular Updates: Keep your Cred relevant by updating criteria or adding new artworks as needed.
Community Engagement: Engage with the community to understand what types of Creds are most valued and desired.
Proper Verification Setup: Ensure your verification method (CSV upload or API) is properly set up and maintained.
Phi Protocol supports three types of verification for Creds:
File Upload (Merkle type):
Uses a CSV file with eligible addresses.
Suitable for scenarios where the eligible list is fixed and doesn't need updates.
Efficient for large lists of addresses.
API (Backend-authorized by verifier signature):
Requires setting up an API for verification.
Allows for dynamic and flexible eligibility criteria.
Suitable for scenarios where eligibility may change or requires real-time checks.
Ethereum Attestation Service (EAS) - Future Implementation:
Will enable verification without a separate backend.
Allows for updatable eligible lists.
Reduces infrastructure requirements for verifiers.
Cred represents an innovative approach to digital identity and achievement verification in the Web3 space, combining the uniqueness of NFTs with the flexibility of various verification methods and the economic incentives of a curation market. By focusing on creating high-quality Creds with multiple artworks and meaningful criteria, creators not only contribute to the richness of the Phi Protocol ecosystem but also open up opportunities for generating revenue. The success of your Creds can create a virtuous cycle, attracting more users, increasing the value of shares, and potentially leading to more revenue through royalties and increased demand for your future Creds.
