| json_metadata | "{"app":"musing/1.1","appTags":["Blockchain",""],"appCategory":"Blockchain","appTitle":"Can a decentralized end to end credit score protocol like \"Bloom\" on the top of ETH chain provide a better risk assessment & credit score than the traditional credit scoring agencies?","appBody":"<p>In the traditional credit rating system, a person has to come into the debt structure and then repay it and then can get a credit score as per the repayment behavior and if you are into a debt structure ever then you may not be able to have a score at all and this is a drawback of it also. So many people because of this don't have a credit score as the structure is designed like that. More over the traditional systems are centralized too. </p>\n<p>In global era, the credit scores varies from region to region despite of the fact that we do business globally. <strong>So we must have credit score which could work across the globe</strong>. So this is one such gray area where blockchain technology can not only fill it in a transparent way but also can make it happen in a secured way. <strong>In traditional systems there have been numerous cases of data theft which can be avoided by blockchain technology and because of the immutable nature of blockchain it can also be ensured that based on the data recorded on the blockchain the true credit score a person can be provided which can be workable for global business environment.</strong></p>\n<p>So in this segment, <em>Bloom is credit score protocol on the top of Etherum chain which offers better risk assessment and credit scoring of genuine potential borrowers. A person can get a credit score by not going into debt and the person can provide other valuable information which will be stored as a record in the blockchain and it also gives control of your own data.</em></p>\n<p>The user interface of Bloom is greeted by Bloom identity and reputation overview and the strength of the reputation of the user can be built by providing identifying information. Further these information are encrypted to ensure security of the data. Also the user has the option to choose to share his data he would like to share with a particular institution or services. Higher the profile strength in Bloom, a user can get more access to financial service providers. </p>\n<p>So Bloom on the top of Etherum blockchain really aims to offer the absolute authority to the user to share his/her data with a service provider or institution and the security of the data is taken care of appropriately. It is not like a traditional system where the user has to submit KYC to a third party and later on, by some tiers, the data gets leaked to other institution and services. <strong>Most importantly the financial and credit score does not require the user to get in to a debt</strong>.</p>\n<p>Further, Bloom also enables people across the world to take a loan or any financial services form an institution and this do not require any access to traditional banking services. It is completely border-less & absolutely global. I think going forward the business entities and enterprises might adopt this system which has the power of blockhchain technology. We can also see a shift of regime from the traditional credit ratings to this new form of decentralized credit-risk-assessment on the blockchain. </p>","appDepth":2,"appParentPermlink":"f3ltry87q","appParentAuthor":"sapwood","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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