Palm as Decentralized Identifiers: Mitigate scrounging of platform economy

Abstract

Abstract This study investigates a novel challenge within the digital economy: scrounging, which entails the exploitation of false identities to capitalize on benefits offered by digital platforms, such as sales promotions and new user incentives. As a form of fraud, scrounging can substantially affect platform efficiency and has emerged as a critical issue in the contemporary digital economy and Web 3.0 sector. This underscores the necessity to model scrounging behavior and implement strategies to mitigate it. In this study, we develop a model that characterizes scrounging behavior in digital platform promotions and provides a theoretical explanation. We also introduce Palm as Decentralized Identifiers (DIDs), offering Proof‐of‐Human (PoH) to reduce fake identity prevalence. Unlike traditional blockchain technology, Palm as Decentralized Identifiers (DIDs) utilizes the Human Chain approach, ensuring equitable treatment of all users within the system. We demonstrate the effectiveness of our system in mitigating scrounging and explore its prospective applications in tackling real‐world challenges in the digital and Web 3.0 economies.

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