Get your OScore today!
OScore, the first credit score for the decentralized world built with Ontology’s Decentralized Identity has officially launched. For simplicity, consider OScore an on-chain reputational system that supports cross-chain interaction with verifiable credentials on the Ontology blockchain, hence eliminating third-party verification programs from the process. Once a user authorizes their digital financial data, Ontology’s OScore system automatically generates a quantifiable credit score while ensuring a user’s privacy is fully protected and controlled by themselves.
To begin, your OScore will be available once you log in and have connected your digital wallets and exchanges — this will allow the system to give you a real-time assessment of your OScore. Within the minimal and clean dashboard, users can authenticate assets to maintain a consistent OScore in accordance with their historical holdings, transactions, and current collection of assets.
In the world of Decentralized Finance, or DeFi, a credit-based scoring system that is both transparent and accurate has the potential to revolutionize not just individual users’ interactions amongst each other, but also the sector as a whole.
“…These perks may include things like being able to under-collateralize assets…”
A credit-based system in the DeFi space will bridge services with users by authenticating a certain level of trust so everyone can enjoy dApps, and DeFi projects with an ease of mind. Users with a higher OScore will enjoy positive externalities as a result. These perks may include things like being able to under-collateralize assets, therefore allowing for higher levels of liquidity and a more matrix-like decision tree for users who have consistently upheld their credit score.
“…users can earn WING tokens as rewards for punctually returning borrowed assets or loans…”
In addition, users can earn WING tokens as rewards for punctually returning borrowed assets or loans, as extra WING tokens will be distributed to reinforce positive behavior. This type of reinforcement can easily be replicated for other DeFi projects or tokens as well as long as they have OScore integrated into their systems. To take things even one step further, users can withdraw any assets which are connected through their wallet directly from the dashboard as well, removing a tedious step from the user journey for those who wish to withdraw assets. All of the features of OScore can be enjoyed through logging in the web browser, or through a user’s ONTO Wallet.
“…users can withdraw any assets which are connected through their wallet directly from the dashboard as well…”
A user’s OScore will also allow for the refinancing and restructuring of mortgages and credit lending where users who demonstrate proper behavior in their lending and repayment practices may also be rewarded with lower interest rates and more generous financing options. A second key component of OScore is the underlying Decentralized Identity solution which protects not just the user’s identity but also their data — granting them full control over who may or may not access it. Users can bind their OScore to their ONT ID just as they could with their real names. We have previously written about the drastically wide array of use cases for ONT ID, so we won’t go into too many details here.
When combined, an OScore becomes a powerful indicator of a user’s trust variable — which essentially is what a credit score is designed for. Just like traditional finance, DeFi can’t reach its full potential without credit. The good news is that with OScore, DeFi platforms like Wing.Finance can improve their underlying market mechanisms to provide users more usability, ultimately leading to a more mature and transparent market for the borrowing, lending, and insuring of digital assets.
The goal behind this launch is to redefine trust in the age of blockchain and elevating hundreds of millions of users to reach new financial heights. Not only will the OScore protect a user’s data privacy while providing full credit histories, but it will also be applicable across an array of real-life applications both offline and on-chain.
With the launch of OScore, Ontology’s mission to change the way we manage and transfer data while increasing security and protection will be realized one step further. As stated by our founder, Li Jun — “Ontology is providing a solution that connects users’ assets to their identity, providing increased security and trust to all parties, connecting the missing pieces of decentralized finance’s ecosystem.” A credit score, tied in with ONT ID and the ONTO Data Wallet, exemplifies the commitment that we envision.