Bonafide, a Bitcoin startup, has raised $850k USD for a project aimed at providing reputation tracking to the Bitcoin world. This funding round was lead by Quest Venture Partners, Crypto Currency Partners, and the AngelList Bitcoin Syndicate.
Brian Moyer, the co-founder of Bonafide, believes that reputation tracking is essential in the Bitcoin industry after suffering through the collapse of many fraudulent or incompetent companies. His service is aimed at providing stability and a sense of security to potential mainstream Bitcoin users, which could accelerate Bitcoin’s penetration into the global financial world.
Rather than attempt to get individuals and firms to sign up for the website and ask for their reputations to be validated, Bonafide uses publicly available information — data from social networks and Bitcoin networks — to report on people and companies in the Bitcoin industry. Based on the images on its website, Bonafide tracks every blockchain transaction that involves the user in question and puts it in a feed, along with updates about reputation ratings received by Bonafide users.
In addition to getting individuals on board, Moyer hopes that his company’s service will make merchants feel more at ease with accepting Bitcoin for their goods and services. He thinks that merchants may be reluctant to accept Bitcoin because it is a lot like paying for something with cash — they simply do not know where the transaction is coming from. And, since Bitcoin is an digital currency, merchants can receive payments from customers online without even seeing what they look like.
Bonafide hopes to solve this issue, and is planning on launching an open beta in the coming weeks.