CreDA Introduces Decentralize Credit Scoring to Boost Greater Access

CreDA (Credit DeFi Alliance), launches the world’s first decentralized credit service to improve the savings and loans system in crypto. The platform will use artificial intelligence (AI) systems to provide credit ratings using on-chain and traditional financial data.

Decentralized credit service startup, CreDA, officially announced the launch of its credit rating system following an initial open beta phase. According to the release, the protocol aims to improve and personalize the credit rating of crypto users in the DeFi ecosystem, allowing users to easily borrow under collateralized and uncollateralized loans from participating platforms.

Launched on American Thanksgiving, Thursday, November 25, CreDA leverages blockchain technology to provide a trust architecture to spur the growth of the DeFi lending ecosystem and link traditional lending systems with on-chain systems. The platform will simplify users’ transactions, minimize risk for lenders and boost access to capital via undercollateralized and non-collateralized loans.

While the world is rapidly adopting decentralized financial applications and cryptocurrencies, people’s on-chain assets and financial history don’t cross over into traditional financial markets, so they may still find it difficult to receive loans. At the same time, people who have great credit may find it difficult to enter the DeFi space, as lending platforms require overcollateralized loans, requiring borrowers to typically post upwards of 50% in collateral. This cripples the financial system, locking out people with good real-world credit scores, or the underbanked, from accessing any capital.

As Cassie Zhang, CreDA’s Chief Operating Officer explains, credit ratings are a clear solution to the over-collateralization of loans and expects CreDA to lead the field in introducing a new credit scoring system.

“The introduction of CreDA Credit Scores will enable unprecedented imagination and innovation to protocol users and developers alike.” Hofbauer adds, “But more importantly, CreDA fulfills the promise of blockchain and decentralized finance, providing the trust architecture needed to unlock capital for the billions of people without access to traditional banking.”

The global organization, with leadership and developer teams across North America, Europe, and Asia, aims to provide a platform that combines traditional credit data with on-chain data to compute a holistic user credit score, allowing more people to access capital, whether from traditional banks or DeFi lending protocols. It aims to increase opportunities to get credit and access capital as the world moves towards the metaverse and digital assets like NFTs.

Built on Arbitrum One, layer 2, the platform obtains data on a user’s on-chain financial behavior and assets using the CreDA Credit Oracle (NYSE:), which employs AI to examine users’ transaction…