Decentralized Credit Scores: Polygon Looks to Disrupt Market With Its New Identity System

Decentralized credit scores: Determining a user’s credit score in the decentralized web isn’t always an easy thing to do. That’s because privacy is embedded as a key tenet of the crypto industry. So, lenders have had to use such things as on-chain transactions and observable off-chain activities to measure creditworthiness.

But even that may be stretching the definition of “decentralized lending.” It often resulted in users having to reveal more information about themselves than they needed to. Now, that may be starting to change.

Polygon has launched Polygon ID, a decentralized and private identity service for web3 and DeFi. The identity platform uses zero-knowledge (zk) cryptography – a technology that can prove the validity of data without revealing any other personally identifying information.

Source : Beincrypto

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