The FreshCredit® App
Data Management Protocol DMP
The user’s The FreshCredit® App is the access point for user privacy, control, and customization that gives the individual the ability to interact with their BlockID® and the data ledger, storing hashed versions of all the data captured on the network. This allows them to customize the amount and type of data they allow for analysis when they would like to monetize their data utilizing the network. User-specific data earnings are calculated and fractionalized from the total earnings generated on the monetization layer and stored on the earnings ledger before being distributed to each individual’s BlockID® dNFT wallet.
BlockID® dNFT – Sovereign Financial Identity and Data Privacy
The FreshCredit® Network is a secure decentralized inclusive credit scoring system for verified financial identity. The Fresh Protocol allows users to establish a global, federated identity with third parties and whitelisted partners who “vouch” for their identity information, legal status, and creditworthiness. The BlockID® dNFT is the data management protocol for establishing a reliable identity and forms the FreshCredit® Network of creditworthy users.
The BlockID® dNFT allows approved organizations that store consumer identities to identify a user and mark that information on the blockchain as valid. User data sources may include but are not limited to financial transactions, credit bureaus, income verification, and digital assets which have been staked or claimed to know wallets or devices in the network. This allows the users to inherit trust from their existing reputation or establish a new track record using alternative data. Every user on the network has complete control of the data that they provide the network, utilizing opt-in functionalities to share data through interoperable API-based data transfer networks. All whitelisted data providers are GDPR compliant.
Once a user’s data is requested and retrieved, the data provider cryptographically signs and returns it to the user creating a unique storage identifier. The data provider then sends access tokens to the user’s non-custodial wallet. This process maintains a one-to-one mapping from the user’s wallet to the user’s BlockID® dNFT and enables future retrieval of current user information.
Currently, private companies such as credit bureaus and governments hold most identity data globally. These organizations play a critical role in accelerating the user adoption rate of the BlockID® dNFT ecosystem by validating the authenticity of user-submitted data.
The BlockID® dNFT supports many forms of identity validators.
Electronic ID Verification: Verification of a user’s identity data by cross-referencing provided information with public records, private records, or government databases from around the world.
Documentary Verification: Verification of official documentation such as a passport or a valid driver’s license and whether the user’s image on the document matches the provided documents.
Social Verification: Verifying the user’s identity via social networks like Facebook, Linkedin, and Twitter using open-graph technology to help reduce fraud.
Sanction Screening: Cross-referencing known global sanction programs operated by various governments worldwide to ensure the user is not listed on one of these sources.
Politically Exposed Persons: Ensure that a user is not someone with a prominent political function who could be at high risk of potential bribery or involved in political corruption.
The Fresh Protocol data is comprehensive first-party data that provides different dimensions and data sources in real-time. The network securely manages the data and processes that data based on the user’s permissions and privacy settings. This new model is the next giant leap in data monetization leading to the tokenization of data creating actual ownership of the user’s data granting access to the FreshCredit® Network, on-chain governance, staking rewards, and new unseen streams of social capital.
The sourced data is filtered, segmented, and issued a storage hash key representing the user’s cryptographically stored data. These insights provide patterns that will maximize the credit scoring and matching algorithms accuracy, enabling the data management platform to offer a superior dataset that can be leveraged by financial service companies and institutions, allowing them to access, manage and create targeted segments on a global scale. The data ledger establishes an audit trail enabling the network to track how each specific block of data has been used. The privacy settings chosen by the individual user enable granular auditable traceability that allows the fractionalization of lending revenues generated by each user’s staked amount of monetized data.
The BlockID® dNFT is a user’s dNFT (dynamic NFT) for reporting and tracking historical and current debt obligations tied to the user’s BlockID® dNFT. The BlockScore® Protocol allows the users to opt-in or out or releases data to third parties through the public API.
The basic concept of the credit industry is sharing data. The cross-chain architecture of the Polkadot Substrate blockchain framework allows for rapid development of credit business scenarios, but data will be managed on the blockchain network. In order for The Fresh Protocol to securely integrate with centralized institutions and decentralized platforms, the current organizations must be able to report payment data in a consistent transferrable format. By doing this, The Fresh Protocol will utilize the existing building block and core credit data of both centralized and decentralized networks, forming a complete picture of each user.
Tamper Proof Reporting w/ IPFS
This format represents a payment agreement requiring a set payment amount for a set period of time. The information generated by the loan contract payments is encrypted and then pinned to the IPFS address of the user tied to their BlockID® dNFT.
This allows the user to interface the data with other network collaborators.
When an organization accesses the shared data, they can confirm the original IPFS resource deterring against fraudulent reporting. The organizations or credit data producers will contribute information that is validated by the network that can be tokenized, forming a trusted digital asset that can be monetized or exchanged across networks.
Implementing FCRA Compliance
Node validation on the network confirms that the data transactions are accurate, and the blockchain ledger supports the auditable traceability of where the network is deriving value. The node serves to maintain the blockchain record. As the data is stored on a blockchain, this creates concerns for data privacy and the right to dispute unverified or inaccurate information. Blockchain is transparent and immutable, possibly exposing user data and, secondly, making it impossible to erase erroneous information. According to a study by the EU parliament, protecting credit data and enabling the ability to erase data can be accomplished utilizing a multi-level encrypted storage solution while still implementing blockchain and the IPFS network for off-chain cloud storage referencing the cryptographic hash generated by the users BlockID® dNFT.
In order for The Fresh Protocol to follow regulatory compliance standards of the Fair Credit Reporting Act, FCRA, and EU, which state must allow users to exercise the right to deletion from their credit report, the system requires a three key process. One key belongs to The FreshCredit® Network, a second key belongs to the user, and the third key is algorithmically generated by the initial server that processed the data. This third key can later be used to destroy the data using the same algorithmic encryption correcting the credit report. It is essential to understand that this does not remove the immutability of the blockchain but instead allows the functionality of the network server to modify the data stored in the IPFS cloud network. This modification is then recorded onto the blockchain creating immutable traceability to audit how the correction was made.
Storage Cost On The IPFS Network
The cost to store 2-3 terabytes of data costs around $6usd annually, which is nullified further by the remittance fees factoring in network data storage costs, meaning the user does not actually pay a subscription-based storage fee, reducing the barrier for entry.
Handling Bad Actors and Spam Accounts
Users will spend time building their decentralized BlockScore. Time connects financial accounts, social KYC, syncing credit reports, and blockchain transactions. These things take time to build up, and users cannot go backward and fabricate this data. If a user abandons a BlockID® dNFT and tries to start over, it would take a significant amount of time to build a BlockScore® Protocol without connecting any previous accounts. If users tried to connect previous accounts, they would simply resync to the previous score. Obtaining new government documentation, rebuilding entire social networks, blockchain activity, and institutional financial data with history provides a high level of scrutiny while disincentivizing the notion of abandoning an individual BlockID® dNFT and trying to restart or game the system.