Have you ever played a game with your friends or siblings and had to choose a leader? Maybe you chose the person who was really good at the game, or the person who was honest and fair. Reputation systems are kind of like choosing a leader in a game.
Imagine you have a website where people can buy and sell things. You want to make sure that everyone using the website is honest and trustworthy. So you create a reputation system.
Whenever someone buys or sells something on the website, they can leave a review. If the experience was good, they can give the other person a thumbs up or a star rating. If the experience was bad, they can give them a thumbs down or a low rating.
So over time, people build up a reputation based on how many good reviews they get. If someone has lots of good reviews, everyone will trust them and want to do business with them. But if someone has lots of bad reviews, nobody will want to do business with them.
And just like choosing a leader in a game, the person with the best reputation becomes the leader of the website - the one that everyone trusts and looks up to.