If I think through some open-loop systems I worked on back in the day, they always have intrinsic guardrails on top of extrinsic ones. For example, you enter the subway and tap w/ your apple pay (unlike your tap card, which is/used-to-be closed-loop issued; not sure if LA has open loop nowadays?). Not only will there be a check against MC's service that guarantees the first 15 bucks, but it will also be checked against internally kept deny lists, and in many implementations, something like trip reconstruction and intrinsic risk management modules (does this card have a history?) that will decide what and when to charge and for how much. So even in such systems, that really only just process payments, there are additional metrics that decide reputation.
I think in SN's case that relying on open-loop sats is a good metric, but perhaps not a good system-as-a-whole for ranking if it's the only metric?
This is a really good question btw.
If I think through some open-loop systems I worked on back in the day, they always have intrinsic guardrails on top of extrinsic ones. For example, you enter the subway and tap w/ your apple pay (unlike your tap card, which is/used-to-be closed-loop issued; not sure if LA has open loop nowadays?). Not only will there be a check against MC's service that guarantees the first 15 bucks, but it will also be checked against internally kept deny lists, and in many implementations, something like trip reconstruction and intrinsic risk management modules (does this card have a history?) that will decide what and when to charge and for how much. So even in such systems, that really only just process payments, there are additional metrics that decide reputation.
I think in SN's case that relying on open-loop sats is a good metric, but perhaps not a good system-as-a-whole for ranking if it's the only metric?