We propose SMART, a novel reputation system that aggregates and distributes current reputation of nodes in the network. Trust is evaluated in terms of number of successful interactions an entity performs with other entities; once initial trust is established an entity can trust its neighbors with certain degree of confidence. These neighbors help to establish a short chain of mutually trusted entities in the network known as "trusted contacts". Each node has to be consistent in providing good service else it is penalized. We aim at providing inherent incentive for nodes to cooperate. The nodes are rewarded by benefiting in terms of packet forwarding and receiving quality service from this trusted community. A node can evaluate trust based on its own direct observation of peer nodes behavior or based on Neighbor observations.
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