Credit DeFi Alliance (CreDA) – the world’s first decentralized credit scoring service – launched its platform after a successful open beta.

Following the lead of traditional consumer credit bureaus, CreDA introduced its personal credit score concept into the $ 200 billion decentralized finance (DeFi) ecosystem populated by cryptocurrencies such as Bitcoin and Ethereum. .

By leveraging existing blockchain infrastructure, the company said it provides a trusted architecture for the crypto ecosystem and a link between on-chain and traditional financial systems.

The Alliance said its goal was to simplify transactions for users, minimize risk for lenders, and allow access to capital without the need for high amounts of collateral typically required by DeFi lenders.

Cassie Zhang, COO of CreDA, explained that in traditional finance, the total value of unsecured loans based on credit was several times that of secured mortgages.

“The introduction of CreDA credit scores will allow unprecedented imagination and innovation for users and protocol developers,” she noted.

“But more importantly, CreDA delivers on the promise of blockchain and decentralized finance, providing the trust architecture needed to unlock capital for billions of people without access to traditional banking services.”

CreDA would therefore allow users to link their wallets, create an NFT loan (cNFT) and borrow low or unsecured loans, all from the same platform.

Keeping DeFi’s promise

The company said it wants to improve access to capital for people who don’t have access to traditional banking services because the reality of DeFi has not been so straightforward.

Lack of confidence in the system means lenders have to reduce risk by demanding crippling collateral amounts, which has become the norm in DeFi.

CreDA stressed that it will deliver on the promise of blockchain and decentralized finance, providing the trust architecture needed to unlock capital for the billions of people without access to traditional banking services.

At launch, CreDA partners included UniSwap, SushiSwap, Elastos, FilDA, PolyNetwork, O3 Swap, WePiggy, Channels and dForce.

Built on the Ethereum Layer 2 network, CreDA will run on multiple chains including Arbitrum, BSC (Binance Smart Chain), Polkadot, Polygon, HECO (Huobi ECO Chain) and ESC (Elastos Sidechain).