KYC, Credit Score, ID verification for DeFi services using cryptography to keep privacy.
I was thinking of the reasons why the DEFI thing isn’t working well, I mean I loved DAI even it has a lot of problems (maybe I’ll discuss this later) and for sure I love the Lightning Network, but it’s not providing financial services for people in the MENA or giving better financial services for people in Europe and the U.S! I mean who wants to switch from the `good` financial services to have complex, not better or even the same, high-risk financial services. Most of the financial services need you to know with who it is working with and I don’t see it reasonable to not know anything about the customer, today, we have the ability to know without knowing with technologies like Federated Learning, Homomorphic Encryption and Zero-Knowledge Proof, not store user data, and keep Censorship Resistance with better rules from the financial system. But we can open many many applications if we add the trust layer (KYC, credit score, identification Layer). For example: Blockfi: 8.6 %APR Compound: 2.14 %APR TD Bank: 0.05% Borrow APR in DEFI is up to: 14.7% TD Bank borrow APR: 6.99% You have to put more than you lend Each time you have to complete a profile Until now you can’t proof of financial support I can’t use my credit score to lend crypto What is the positioning statement? For DEFI services providers, who want to want to give the most out of their service and allow people in the MENA to have their rights of accessing financial services and for people in Europe and U.S who wants to start having good decentralized financial services, DFID is a decentralized financial id that keeps privacy using cryptography to get data from KYC verification, identification, and credit score! What are our POC details? I didn’t want to spend a lot of time and resources on it so I decided to build the minimum things with the minimum efforts! The POC was centralized but I though there is no need to go into complexities if no one wants to use it! Architecture: Use Truffle tools Web3.js for getting data from Ethereum chain Netlify for hosting TheGraph for getting data from DEFI services React for the front-end Airtable for a database as a service The Future: The architecture was used in the POC is not decentralized, keeping privacy, and do a well-crafted architecture so: Everything must be decentralized and with the hand's user through his PK so all files data will be encrypted and set on IPFS and we only get the results not the whole file through building services execution services. Everything will be connected through the DID smart contracts and the id is connected with multiple addresses We will use Node.js for APIs with MongoDB. We will build decentralized Oracles for getting the data from the DEFI services. We have to start writing credit score, KYC standards for the DEFI world. How we will Calculate the Points: Note: those are just fast calculations for the POC There are 100 points: 55% for CEFI + 45% for DEFI 5 points for ID Document 5 points for Sanction Screen 5 points for PEP Screen 10 points Income verification 10 points for Assets verification 10 points for bank statement 10 points for utility statement 25 points on how much is in the supported currencies for the last 4 months 20 points on the activities in the supported DEFI services Services: Proof of Finacial Supported: If you are unbanked and you need to have proof of financial support this would be so challenging but what if you can prove how much you own using cryptocurrencies! How POFS works? We create a document, we hash it and then store it on an Ethereum smart contract. for example, if the embassy got this document they visit a page to verify and they upload the document to verify. Scores API: We give DEFI services the ability to verify the needed information to give their users the best rate, credit, and trusting them to add more services
Architecture: Use Truffle tools Web3.js for getting data from Ethereum chain Netlify for hosting TheGraph for getting data from DEFI services React for the front-end Airtable for a database as a service