Service Proofs as Edge Attributes
How service proofs verify completed transactions and feed into edge weights through proof_factor and quality.
Service proofs verify that a transaction has been successfully completed between a buyer and a provider. In the Local Protocol, these proofs can take the form of pin exchanges, location proofs, or other evidence of service completion. Service proofs enhance the reliability of the transaction graph, ensuring that rewards are allocated for users performing real transactions and not fake transactions.
When available, service proofs can be integrated into the graph value calculation, increasing the weight of the corresponding edge for the transaction, making it more valuable to the network.
How service proofs affect diffusion and incentives
Each directed edge
Service proofs primarily affect:
: stronger evidence of completion increases the effective edge weight. : dispute outcomes, refunds, or chargebacks can decrease the effective weight.
Because diffusion follows outgoing edges proportional to weights, increasing
Key Concepts
- Transaction Verification: Confirms that services have been provided as agreed.
- Graph Integration: Boosts graph value, aligning rewards with verifiable transactions.
Next Steps
Next, see how the protocol models confidence-weighted evidence: