Decentralising Personal Credit Score

Abstract

The current process of securing a loan involves a cumbersome know-your-customer (KYC) process. The process also raises a question about the ownership of credit scores. In this chapter, the authors propose a solution based on a combination of decentralized identifier (DID) W3C blockchain and cryptographic wallet to make it possible to make credit scores possible. A decentralized identifier to enable a loan applicant to assert who he/she is without relying on a centralized identity issuer is key to enabling loan applicants to own his/her own credit score. The use of blockchain is to enable loan applicants to have his/her identity recorded immutably on a store that is trusted by all parties. Finally, the use of a cryptographic wallet is to enable loan applicants to assert identities on demand and prove his/her assertion.