Decentralized Credit Scoring aka Project 8

Hello everyone,

I don’t know if you have noticed but we definitely need a decentralized credit scoring system. I do believe that the Americam system is broken (, the same for the one in China ( and I can tell you that in France it is not better. They will ask you for the name of your children and if it is the same as a participant of Big Brother they will give you a lower grade. For that I believe we can use some kind of reputation system close from what Augur does and adapt it for credit scoring.

If the idea seems familiar is maybe because my team and I presented it during the Coindesk 2015 hackathon last September in New York. I also have talked about it from time to time on the slack. I’m now hoping to code a prototype for this year and for that I will need some help from the community. I am also hoping that people will find interest and will help to improve the concept and challenge the idea.

1 Like

Interesting idea. Reputation or credit is almost only needed to receive financing. Creditors report your reputation wellness to the credit system, so I think a distributed credit scoring system would require a distributed financing system because it makes the loop to create reputation. One approach could be that, for example, distributed creditors with small or large funds opt-in to lend money to anyone with a certain minimum score, and once enough number of creditors are available with all requirements meeting, then money is disbursed. The credit system then records how responsibly the debt is returned. One question is how you can do debt collection in this system? Use some kind of insurance?

The way I want to do it will not involved creditors reporting your reputation but everyone that is willing to. The trick here is to use token that has value to make sure that it is worth something it will make it sybil resistant. They will kind of ‘bet’ on your capacity to pay back your loan. So it can be people that know you. If they are right they will win new token than they can sell.

You may want to check out, they use social network activity to calculate how credit worthy you are.