2.6.1 Authentication Rating

Authentication Checkpoint & Rating

Authenticators report their findings through "authentication checkpoints" available on the asset's GOR profile. These reports include:

• Downloadable Reports: Comprehensive documents detailing the authentication process.

• Overall Authenticity Rate: A score between 0 and 100 assessing the asset's authenticity.

• Rating Justification: Explanations for any changes in the asset's rating, especially if the checkpoint has been conducted more than once.

• Asset Location: The current physical location of the asset, if relevant.

• Existence Evidence: Supporting material such as photos, videos, or LIDAR scans confirming the asset's existence, copies of authenticated obfuscated asset documentation etc.

Minus points: In case of any restrictions, authenticators allocate ‘minus points' per each restriction, ranging from 1 to 100. The total amount of minus points that can be granted is 100, if all are spent, it means the asset has received negative authentication (i.e. it has been deemed as not authentic).

The asset's final authenticity score is calculated based on the following methodology:

1. Each authenticity rating provided by any authenticator that has ever provided such rating for a given asset is:

   1. Multiplied by authenticator’s reputation score

   2. Multiplied by logarithmic function applying sequential [n]% decrease of that rate for each day that have elapsed since that rating has been given

2. Authenticity ratings subjected to the above adjustment step, are then averaged to the final asset authenticity rate.

The mathematical formulas for above process are as follows:

For each authenticity rating provided by an authenticator, we calculate a weighted score (Aws) as follows: Aws=Ar × (1−n)t Where: Aws = Weighted authenticity rating from the single authenticator A = Rating (from 1 to 10) r = Authenticator's reputation n = time-elapse based logarithmic daily decrease rate (e.g. 0.25%) t = amount of days that have elapsed from rating submission Then, to find the overall Asset Authenticity Rating (AAR), we average all the weighted ratings: AAR = ∑(Aws) / Total number of ratings

Above method provides:

1. Gradually decreasing reliability of ratings that have been made in the past, without sudden rating drop

2. Providing higher strength of ratings from Authenticators with higher reputation, therefore promoting engagement of reliable Service Providers.

The Xend team retains the flexibility to dynamically adjust the [n]% decrease rate applied to the authenticity ratings over time. This adjustment capability allows for higher rates to be set for categories of assets deemed 'high risk,' where frequent and up-to-date authenticity checkpoints are crucial.