Bloom Brings the Power of Reusable, Verifiable Credentials to DeFi
After the successful launching of Bloom Radar — the feature which allows you to use your BloomID to monitor data breaches and alerts you when your information has been involved in a breach. Bloom is now bringing the power of BloomID and reusable, verifiable credentials to enterprises with the launch of OnRamp.
What does this mean for Defi?
Onramp is about to change the game for Defi by enabling risk assessment and allowing expansion beyond the limits of collateralized lending. Rather than requiring a user to stake collateral to secure a loan, now DeFi companies can validate identity and assess risk with reusable, verifiable credentials shared directly from the user.
Here’s how it works. First, the user creates their own digital identity (BloomID). Second, the user can securely attach personal data to their BloomID. The data is verified by third-party data attestors who confirm the validity of the information provided. This verified data is then transformed into tamper-proof “reusable, verifiable credentials” which the user can easily share with enterprises for identity verification or risk assessment, all without exposing their raw data.
DeFi has shocked many in the traditional financial world with its quick growth and expansive view of the future. But to truly go global, DeFi needs to figure out how to establish creditworthiness and risk assessment without having to rely on exposing sensitive user data.
“We are excited to give enterprises the ability to leverage verifiable credentials for identity verification and risk assessment, all while respecting user privacy and mitigating the risk of data leaks” these are words from Jace Hensley, Head of Platform at Bloom. “But what we are even more excited about is what our WACI integration enables. Now third party data sources around the world can enter the platform, giving the opportunity for people outside of the standard financial system to prove reliability and creditworthiness. This is a major step for DeFi to go global and truly expand financial inclusivity”
Bloom is a leading blockchain solution for digital identity and reusable, verifiable credentials (VCs)
Bloom was founded in 2017 by Stanford computer scientists in response to the Equifax scandal when hackers gained access to the private information of 147 million US citizens. Bloom set its sights on transforming the way user data is collected, stored, and used with an emphasis on user privacy and expanding financial inclusivity.
In 2018, Bloom released its iOS app, giving users the ability to create and control their own digital identity (BloomID) and connect pieces of personal data to it, verified by trusted third-party data attestors.
In 2019, Bloom released the Android version of the app, followed by the release of Bloom Radar, a free hack monitoring service. Users were given the ability to enroll in this service without compromising their data or enabling its sale to outside parties. This ability attached a tangible value to their reusable verifiable credentials (VCs).
In 2020, Bloom created more value for BloomID holders by partnering with TransUnion to enable free credit monitoring, again without compromising or selling user data.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
Did you like the news you just read? Please leave a feedback to help us serve you better