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Which Blockchain Will Be the First for Credit Scoring?
With global debt exceeding $300 trillion, our society is credit-dependent. Meanwhile, crypto is an asset-based system. So can a blockchain enter the credit realm and usher in billions of users?
For ordinary people, credit is the financial lifeblood of our lives. How many people do you know who buy their house or cars in full? The average US family has over $6,200 in credit card debt. Credit is looked at when we apply for jobs to rent apartments, and (for many) is a consideration for who we marry.
Many would argue one's financial livelihood gets determined by what one earns compared to what they spend. However, I would assert that credit plays equally as big or maybe even more significant than income and spending. Therefore, you are trustworthy if you have a high credit score, and if you have a low credit score, you are not trustworthy.
I'm not here to argue the semantics of determining someone's trustworthiness based on their credit score. I understand the current system is loaded and benefits certain people more than others. And I know how not having access to credit or being penalized for not having credit harms the most financially vulnerable.
