Architecture

The Fresh Protocol Components

There are three main components to The Fresh Protocol.

1. The BlockID® dNFT  – This is the secure global financial identity allowing lenders to provide compliant lending options to consumers and businesses without exposing the personal or sensitive data of the user. The BlockID® dNFT is a dNFT (dynamic NFT) that can be updated and altered over time alongside the network and be used to self-collateralize loans. A BlockID® dNFT is the credit reporting registry protocol tracking current and historical debt obligations tied to the user’s BlockID® dNFT.
2. BlockScore® Protocol – This is the standardized metric of the user’s creditworthiness. It is an unbiased, transparent, and decentralized scoring model similar to VantageScore or FICO while allowing the implementation of alternative data and economic models to more effectively complete the financial identity. This is governed by the non-profit organization, the FreshCredit® Network.
3. BlockIQ® Protocol – This is the transparent algorithmic protocol controlling the FreshCredit® DAO(decentralized autonomous organization), which is a non-custodial liquidity pool that generates value by tokenizing new data being generated across the network, improving the BlockScore® Protocol’s overall accuracy affecting the loan interest and allocation of the FreshCredit® DAO. The FreshCredit® DAO allows assets to be staked to the liquidity pool utilizing a user’s BlockID® dNFT.

The Fresh Protocol improves the current credit scoring and lending systems by implementing composable inclusive scoring models that can serve emerging markets utilizing alternative data while maintaining the highest security and privacy practices blockchain technology provides while simultaneously allowing centralized and decentralized institutions to offer compliant, secure, and fair lending opportunities at a global scale.

The Fresh Protocol Overview

The Fresh Protocol is an algorithmic inclusive credit reporting, scoring, and lending protocol powered by the Substrate (Polkadot) blockchain framework and IPFS cloud infrastructure to securely connect to legacy financial networks such banks and credit bureaus while implementing inclusive alternative data establishing a much more accurate picture of the user’s financial identity and creditworthiness, allowing both centralized and decentralized institutions to extend credit to users operating in underdeveloped and immature markets without taking on additional risk.

The Fresh Protocol operates via a distributed cloud node network on the Polkadot blockchain utilizing parachain technology and side-chain operators. This allows interoperability to extend to all other blockchain networks in the decentralized ecosystem, such as Ethereum, Cardano, Stellar, and Ripple. The Fresh Protocols nodes use validators maintained on cloud-based infrastructures, such as Microsoft Azure, AWS, and Google Cloud, and this allows the nodes to connect to centralized institutions using off-chain operators.

The parachain’s validators then validate all the data reported by the side-chain operators before being cryptographically stored and analyzed by the composable open-source credit scoring algorithms.