Understanding Proof-of-Developer (PoD)
Proof-of-developer (PoD) is a method that establishes a connection between a blockchain project and its actual developer or developers. Its purpose is to protect against fraudulent individuals who try to gain control of a project, including its funding, without delivering the final product to investors. This mechanism is commonly used in cryptocurrency-based projects.
The concept of PoD was introduced in 2014 as a response to the losses suffered by crypto investors due to pumps and dumps. These incidents occur when a coin’s developers or malicious investors artificially inflate its prices. Once they have generated a significant return on investment (ROI), they sell or “dump” their holdings, causing the price to plummet and resulting in losses for other investors.
Proof-of-developer was launched during the rise of initial coin offerings (ICOs), a period when some issuers were solely focused on defrauding unsuspecting investors. PoD allows investors to go beyond attractive ROI figures and determine whether an ICO project genuinely has active and legitimate developers.
Furthermore, proof-of-developer helps identify individuals who plagiarize existing crypto codes and present them as their own original projects to attract investments.
The PoD mechanism stores developers’ names, country of origin, individual social media handles, and personal email addresses. Additionally, the process involves verifying these details and confirming the developers’ educational background and GitHub page.
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