Lending and borrowing have been a long practice, the essential element for its smooth running is the concept of credit scoring. After evaluating credit scoring the loans are granted to a borrower. The centralized nature of the traditional system leads the credit scoring to be based on assessment that was built on concealed material, misrepresentation and favouritism.

With the onboarding of the different categories of assets from the real world onto the chain,there is a desperate need to validate its legitimacy and prevent the Defi ground from becoming a malicious area with fraudulent borrowing against false assets. The necessity of authenticating the existence of these Real world Assets requires a parameter on the chain that could be based on the evaluation of the Real World Assets being onboard.

To bring such trust and transparency to the Web3, Cred protocol, using a combination of on-chain and off-chain information, assesses risk associated with the account holders and their assets (including RWAs) to evaluate their genuineness, ability and willingness to repay loans. 

Episode highlights: 

• [3'13] What is credit Scoring? 
• [7'42] What parameters determine a user's score?
• [24'19] What’s the importance of Real World Asset possession in comparison to other assets? 
• ... etc.

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About the show:
“Link to the Chain”, hosted by BSOS, is a dedicated show that dives deep into the development of Real-World Assets (RWA) and Decentralized Finance (DeFi). Whether you are a crypto enthusiast or have been following the web3 industry, this podcast brings to you the latest viewpoints from the experts in RWA DeFi.