Blockchain Non-Financial Use Cases - Credit System (15/30)

The credit system does not just affect wealth but also life-changing opportunities like buying a home or getting a job. But the current credit system is broken and tainted by biases that can last generations.

What if you could prove your creditworthiness without revealing your social security number? Or even your name?

What if you could actually understand how your creditworthiness is measured? Or even create a custom credit score that fits your unique circumstance?  

Solution:

A global credit score system measured and tracked in a public database with permissioned and secure access.  

• Zero-knowledge proofs can be used to prove you meet specific creditworthiness requirements without revealing personal identifiable information
• Zero-knowledge proofs can also be used to run AML and KYC checks for credit applications without revealing personal identifiable information
• The system can maintain a global credit score that can be used across the world and different use cases
• People can have clarity in how the score was calculated by having details of the inputs and calculations openly available
• People can quickly identify errors or manipulation and get fixes using an open dispute process
• With data encrypted on a blockchain and only available using private keys, the risk of a breach goes down
• An open system that limits personal identifiable information can be used to lower discrimination and bias in the credit system

The credit system has to be improved given how deep of an impact it can have on people’s current and future lives. If bad credit scoring systems remain, people can be stuck in a vicious cycle. Technology can be used to not just level the playing field but also improve the overall credit habits of people in the global economy.