What are Credit Scores and Why are they Significant in the DeFi Space?

The Importance of Credit Scores

While this incorporation ushers in the value of credit scores to DeFi, the DeFi space itself adds associative significance to credit scores.

Hybrid Bank — Central Credit Information Disclosure System


Credit score essentially reflects credit risk, that is, the possibility of the lender incurring a loss from the borrower’s failure to pay the borrowed amount back. Collaterals and interest rates are therefore mitigation strategies. Credit scores play a key role by presenting your creditworthiness to the financial world and making it easier for you to secure a loan.

Sharing Credit Score

Coming back to the fundamental differences between traditional and DeFi credit scores, traditional credit scoring bureaus essentially sell user data to anyone who pays for it. One of the more decisive drawbacks of traditional credit score is its inability to be of value beyond border.

Ownership of Credit Scores

Ownership of data by traditional credit bureaus have also led to identity thefts, data leaks and infamous breaches. Within blockchain’s secure and robust system, Hybrid Bank’s credit ratings are verified and updated automatically with prompts for actionable insights from time-to-time. It allows users to monitor their own credit scores and share only as much information as they want to with a third party, thus guaranteeing informed decisions and privacy.



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Hybrid Bank is building a platform with Tools and Techniques to value Credit Worthiness of Companies dealing in Digital Assets.