“Presently, whether it’s for banking or registering for a crypto exchange, users need to market upload their profiles. Meanwhile, institutions also have to repetitively run the KYC process manually, which can be time-consuming and leads to a big data storage in their ends.”
Published at Fri, 20 Jul 2018 00:00:30 +0000
With banks running as nodes on the blockchain, the database can extract credit information of a user from various institutions as well as from user’s personal entry, so as to calculate a credit rating, which is then stored around the blockchain.
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And also to incentivize user information entry, Zhang explained the system will issue its own tokens but hasn’t yet determined precise usefulness scenarios or whether the token can be traded.
In a similar manner, POINTS is also charting the growth of a different blockchain-based program in addition to its protocol to get credit scoring in a movement aimed at”serve the unbanked.”
To that end, Zhang explained the firm partnered with an IT firm called Teleinfo, which can be is a wholly-owned subsidiary of the China Academy of Information and Communications Technology.
“When users willingly upload their data through the blockchain program, the database will automatically validate that information… then timestamp and store validation results in the blockchain. Therefore, participating nodes such as banks will merely observe the supported results (such as KYC) instead of the exact user details.”
“The end objective is to provide a user a charge profile as whole as you can so that they can get into financial products which otherwise may not be available,” she added.
Zhang further clarified:
Zhang image courtesy of POINTS
The new capital will be employed to enlarge the business’s technology team in an attempt to speed up its development of blockchain-based know-your-customer (KYC) and credit scoring software. The idea is to construct its protocol in addition to a decentralized system and enable apps that can eliminate repetitive procedures around individuality.
Sarah Zhang, the creator of POINTS, told CoinDesk:
A startup seeking to construct a credit rating protocol in addition to this recently-launched Ontology blockchain has raised $8 million in seed funding.
But instead of requesting financial firms to become validators, that upgrade and share a dispersed ledger which comprises user ID information, POINT’s protocol comprises another layer of a centralized database to take up the function for a validator.
By partnering with its investor Zhong Cheng Xin, Zhang said the company also benefits access to 500 million existing credit profiles offered by the rating agency.
The partnership effectively gives POINTS the access to your database of 1 billion profiles of Chinese customers.
POINTS, based in 2017, said it drew funding from a mixture of conventional venture capitalists including Danhua Capital along with Ceyuan Ventures, a backer of OKCoin.