OScore is a self-sovereign credit evaluation system based on user data stored on the Ontology blockchain. With full integration of ONT ID, Ontology’s decentralized identity framework, OScore supports cross-chain interaction and verifiable credentials, connecting user identities with personal accounts on the Ontology blockchain, eliminating third parties from the process. Once a user authorizes their financial data, Ontology’s OScore system generates a quantifiable credit score, while ensuring the user’s privacy is fully protected.
OScore gives users full control over their digital assets and contracts addresses through a mechanism that gives them full autonomy regarding who has access to their data. Users are permitted to bind their digital assets or contract addresses to their ONT ID, and subsequently unbind them whenever they wish to do so. It is entirely up to the user to authorize third-party access to their data. Data used in OScore calculations includes the user’s digital asset balance, historical holding records, transaction records, records dApp usage.
OScore is an independent on-chain reputation system, generated by specific onchain user data that is not associated with their off-chain identities. In this way, OScore protects the user’s privacy and supports full anonymity.
In the financial sector, a huge chasm remains in the data collaboration between both the off-chain and on-chain worlds. For most blockchain users, on-chain assets and actions constitute a significant aspect of their financial profile. However, most credit-related scenarios in the world today still require the user’s off-chain information to be reliable, without taking into account that their onchain data could also give insight into their credit history.
OScore seeks to bridge the gap between users and DeFi services, allowing users to enjoy the DeFi projects, dApps and blockchain platforms suited to their needs. Users can manage their on-chain credit data at their will, and if they have a positive credit history, they can put their credit data to use in more rewarding financial products, all the while knowing that their privacy is safe from intrusion. In addition, users can bind their OScore and off-chain real-name data to their ONT ID, pooling their off-chain and on-chain data to form a more complete credit profile for themselves that can be applied in both the on-chain and off-chain worlds.
OScore finds an optimal application in Wing, a DeFi project based on the Ontology blockchain. Wing integrates OScore into its credit evaluation module to support its DeFi services. Each Wing product pool can use OScore to increase the credibility of its DeFi services. Users can benefit from OScore in the following ways:
OScore helps users avoid over-collateralization when looking to borrow a variety of digital assets
An OScore is generated for the user based on a hybrid calculation of their identity, social status, and assets. Users with a high OScore may enjoy under-collateralization in crediting digital assets, such as collateralizing 8 bitcoins to get 10.
OScore users can enjoy WING incentives
Based on the user’s level of participation, the product pool will distribute extra WINGs in every transaction as incentives for crediting participants with an OScore. Users who return their credited assets on time will receive extra OScore points as a reward. Other DeFi projects or credit-evaluating products can also utilize OScore for similar functions.
OScore protects user privacy, even when they have not met contractual terms
Users who breach terms will be listed on an OScore privacy-protecting list. Despite this, they still have control over which entities have access to this list, as they have completed the authorization process before joining the crediting activities.
OScore offers a framework where users can find credit evaluating tools that serve different purposes. Every user can write their own credit evaluation algorithm or re-use the credit score issued by a trusted third party. From the user’s perspective, OScore can be used to desensitize their credit data and provide verifiable credentials with scoring algorithms and credit data as trust endorsement for credit-related business.
Currently, OScore’s primary credit evaluation mechanism calculates the user’s balance and historical holding records of digital assets and supports blockchain platforms based on BTC, ETH, and ONT. In the future, updated OScore systems will continue to incorporate more types of on-chain data and evaluation mechanisms. In addition, Ontology also has plans to integrate OScore into the ONTO wallet. Relevant SDKs and APIs will also be released to allow integration and deployment by third-party apps.