Fivemileshigh:
I don't see how you can start with that. Would you get everybody in the world to sign up and have their reputation registered or recorded? How could you convince everybody to sign up? The global reputation system seems like something that would be an end result, something to come in later stages. In the beginning, only participants in a transaction would have their reputations assessed by other transaction participants, and as a result of those transactions.
It wouldn't be global initially. You start by having complainants name defendants of crimes, resolved or unresolved. It's basically a website where people can warn others about criminal characters. The website then publishes the criminals in search engines. An example: http://www.seanbanerjee.com/ This guy pissed off so many people that they dedicated a website to him. If you google his name, "Sean Banerjee is a SCAMMER" is the first result. The goal is to make the site a resource and have it go viral.
We're almost talking about the same thing. You want to record trade and transactions. I want to record crimes and accusations of crimes. You can call it feedback or reputation, they're essentially the same thing. With your example both parties would be giving feedback about the transaction. With mine, most likely only the complainants would be giving feedback, at least initially. The defendant who wishes to remove negative reputation would then be forced to sign up and resolve the accusation with the complainant. I can think of half a dozen people I would like to warn others about publically, mostly for unresolved crimes. Even though I don't think these people will ever pay for their crimes, it's important that it be made known to the public. Because it doesn't require both parties, a complainant can even name a statist who was directly responsible for a crime against the complainant. We all know there are a huge number of statists who are never held accountable for their crimes. The definitions of crimes on the reputation site don't have to be the same as what the state defines them as.
Fivemileshigh:The question is, what else can this model be applied to right now?
You would have to build the feedback system, then market the idea to places that conduct trade. Make another eBay, but free to use (one that generates money from advertising alone), then implement your feedback system (I know making another popular auction site is a tall order). A problem with eBay is that their users are virtually anonymous to the public. Unless you make a transaction with someone, there's no way to identify them because they hide behind fictitious names.
You could also import all publically made court records as a source for reputation or negative transactions. It would be a lot of work, but there could be a lot of good information.
altme:
If you're talking about DROs in general, they also provide insurance and defense/security services. On the topic of insurance, I've wondered if there are types of insurance that aren't being offered today that could be feasible, the kinds that DROs offer in theory. Like insurance against the state, global warming, pollution, traffic tickets.....