The Rise of Blockchain-Based Reputation

Traditional credit scores help lenders decide whether someone is likely to repay a loan, but they don’t work equally well for people with limited banking histories. Blockchain-based reputation systems could potentially use a person’s on-chain activity to create alternative forms of financial credibility. Repayment history, transaction behaviour or participation in certain financial applications could become part of a digital reputation. The challenge is privacy: people may not want their financial behaviour permanently visible or used to judge them. There is also a risk of confusing wallet activity with someone’s real financial situation. Could decentralised reputation eventually complement traditional credit scoring?