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Clarity

Clarity is a payment gateway designed to tackle the multibillion-dollar problem of fake reviews by enabling seamless, verifiable on-chain payments and reviews.

Clarity

Created At

ETHGlobal Singapore

Winner of

The Graph - Best New Subgraph Grand Prize

Sign Protocol - Best Overall Application

Sign Protocol - Best Consumer Application

Worldcoin - Best Use of World ID 2nd place

ETHGlobal - 🏆 ETHGlobal Singapore 2024 Finalist

Project Description

Store dashboard demo

Checkout demo

PROBLEM:

Summary

Fake reviews mislead consumers, create unfair competition, erode trust in online platforms, and distort marketplace dynamics, leading to financial and reputational harm for both businesses and customers.

Extent of the problem

Fake reviews are widespread, with estimates suggesting that up to 42% of reviews on major platforms like Amazon could be fake, costing global businesses over $152 billion annually. Consumers are increasingly aware of the issue, with 62% believing they've encountered fake reviews in the past year.

Key Reasons

  • Bots: Automated systems generate fake reviews in bulk, inflating ratings for products or services.
  • One Person Having Multiple Accounts: Individuals create multiple accounts to post numerous fake reviews, artificially boosting or harming a product’s reputation.
  • Censored or Edited Reviews: Platforms or sellers manipulate reviews by censoring negative feedback or selectively editing them to present products in a more favourable light.
  • Opaqueness of existing review systems: Users have little to no insights into how existing review mechanisms work, and whether transactions have been made for the product/service being reviewed.

SOLUTION - Clarity

Clarity is a highly usable online payment gateway SDK that can be integrated with any online and physical merchant easily. It aims to solve the following issues:

Building merchant’s trust in user

Clarity aims to solve the issues of trust between consumers and merchants using payment and review attestations through Sign Protocol and proof of personhood via WorldID. This ensures that every review is created by a real person. Clarity also rewards each user a Clarity token regardless of their Ethereum address. This helps guard against sybils and multi-accounters

Building user trust in Merchants

Review attestations also help build trust in merchants. Additionally, Clarity seamlessly mints an ENS address for merchants, making merchants address easily identifiable by users. Similar to a web 2.0 domain, this makes it familiar for users to pay and trust merchants.

Solving the issue of opaque review systems

Web3 transactions are transparent to users, and anyone can verify the legitimacy of transactions and their corresponding reviews. Shifting payments on-chain would thereby allow users to verify how our review mechanism works, while also allowing merchants to enjoy the benefit of reduced transaction costs on layer 2 networks. Clarity therefore aspires to accelerate the shift to decentralized payments, by being the next-gen payment gateway to onboard web2 users to web3 with superior user experience.. Clarity enables any user to seamlessly create a smart wallet simply by using Google to log in through Dynamic, without needing to know anything about wallets, transactions or gas.

How it's Made

Contracts - Clarity consists of three main contracts

  1. Clarity (main)
  2. ClaritySPHook
  3. Sign Protocol’s SP contract which are integrated with the ERC-4337 Account Abstraction module infrastructure provided by Biconomy.

The main Clarity manages all cash flow from order payments between customers and merchants while enabling reviews through Sign Protocol’s attestations. To enable the best flexibility and convenience for users, the contract integrates multi-token swaps via OneInchSwapHelper to facilitate payment settlement in different currencies.

The Clarity main contract integrates the Sign Protocol to leverage its review schema and custom hook instance (ClaritySPHook) for enhanced attestation capabilities. This integration ensures that reviews are not only verified but also tied to specific users through privacy-preserving methods such as WorldID.

Frontend

We created an SDK for merchants to implement into their own sites. We also built a UI for merchants to view their reviews and other statistics.

WorldID

By leveraging WorldID's incognito actions for private proof of personhood, we ensure that all purchases and reviews are made by real verified users, not bots. WorldID's privacy-preserving proof allows linking multiple ETH addresses to 1 person, enabling accurate collection of loyalty points while preserving privacy. This integration enhances the integrity of our platform and provides greater flexibility for blockchain-based financial services. Additionally, WorldID’s proof of personhood can help combat concert ticket botters by ensuring that 1 worldID user can only buy 1 ticket.

SignProtocol

Sign protocol’s attestation has the perfect synergy with integrating with WorldID’s proof of personhood enabling us to verify a real person made a transaction. Coupled with the immutability and censorship resistance of public blockchains, Clarity chose SignProtocol to be the default attestation platform for review attestation, efficient data indexing and enabling merchants to leverage on these to issue points, cashback, or bonuses to real persons based on real transactions.

All purchases and transactions made by the user are being attested, and all reviews done by the user are being attested. This ensures that reviews can only be made by a user who made a purchase and the review is real on the public blockchain, improving trust amongst merchants and users.

Sign Protocol’s instance also enables custom hook integration that enables the flexibility for advanced implementation on top of just a simple attestation feature. Here, Clarity leverages Sign Protocol for review attestations to guarantee immutability and censorship resistance while gelling with WorldID’s humanhood verification to ensure the authenticity and fairness of its native loyalty program based on genuine proactiveness.

Subgraph

Thanks to TheGraph Protocol, Clarity has near-instantaneous access to blockchain data through a developer-friendly API. With real-time listening capability, Clarity can track firstly all its cash flow activities (from its main contract), secondly the respective on-chain review attestations from Sign Protocol & thirdly its human hood verification tracking & attestation loyalty point system in an efficient manner without the need for complex infrastructure set-up. With the help of abstracting complex data structures, this not only services for simplifying blockchain data analytics but also ensures that scalability requirements can be effectively met as the amount of data generated increases exponentially.

Dynamic

Dynamic is a core integration which allows provides a seamless end-to-end experience. Our users first log in with traditional methods like Gmail etc. We integrated Biconomy’s Account Abstraction SDK which allowed us to bundle multiple transactions together like our approve and pay transactions, allowing a one click checkout process. To take things further, we sponsored all our users’ transactions, removing the need for users to understand anything about gas. All of these combined allow for Web3 transactions with Web2 experiences, something that we think is important to onboard the next 1M users.

1Inch

We utilised 1Inch dev APIs for displaying the price of assets. We also integrated the 1INCH Swap Aggregator V6 on our contracts. This allows users to pay in any token of their choice, while merchants always receive USDC. In the future, we plan to use the 1Inch fusion API, to provide cross-chain swaps as well.

ENS

We offer merchants a streamlined process to mint their own ENS addresses during registration, providing their customers with user-friendly, memorable nicknames instead of complex addresses. This feature simplifies communication and transactions, making Web3 payments more accessible to mainstream users.

Nouns

Nouns is a fun addition we have for our project, Nouns help our users create fun profile pictures so that they each have a unique profile avatar yet maintain anonymity. We used nouns as a general design system to guide our loading and error states.

Abstraction

We utilised account abstraction by integrating Biconomy with Dynamic as explained earlier. This makes it easier for users to deal with the Web3 transactions.

Backend Implementation

We used AWS Lambda for our server and Supabase as the database for our Clarity server. It interacts with our payments smart contracts to facilitate order creation and payment verification. Our servers abstract complexity and act as a payment gateway for merchants who want to integrate our payment solution. It contains built-in protection against duplicate payments, enhancing security for both merchants and customers.

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