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Blockchain Data Collaboration Protocol Delivers Credit Ratings for Unbanked


Points (PTS), a blockchain data collaboration protocol for better credit scoring and inclusive finance, has announced $8 million in funding from traditional and blockchain venture capital including DHVC, Cherubic Ventures, Ce Yuan, Ontology Foundation, Nest.Bio Ventures, and Zhong Cheng Xin Credit Technology.

In an effort to make credit accessible to the world’s unbanked population of 1.7 billion people, Points uses blockchain technology and AI to develop a secure and configurable protocol that encourages trustless entities, including banks, institutions, tech companies and consumers to participate in sharing their proprietary data.

The first use case of Points’ infrastructure will be as a credit collaboration network, which enables accurate credit scores and can provide a fairer financial services market that makes credit more readily accessible. As a result of minimizing the risk to banks or other credit institutions that otherwise may not offer loans for high-risk clients, the unbanked or underserved population can gain access to credit or more favourable interest rates on loans or other financial products.

Sarah Zhang, Founder of Points, commented: “With the support of our VCs and partners, we’re excited to be able to launch the first and most accurate market-ready blockchain-based credit network. Our vision is to serve the underrepresented community, and with blockchain as a core technology for Points, we’re able to incentivize partners to participate in risk-free data sharing, which combined with AI, means truly accurate credit scores.”

For any AI to achieve a high-degree of accuracy, it must be fed with huge amounts of data. Points is announcing its data sharing partnership with one of China’s largest credit rating agencies, Zhong Cheng Xin Credit Technology Ltd., and Teleinfo, owned by the Ministry of Industry and Information Technology (MIIT). These partnerships will provide Points with 500 million credit profiles and one billion identity profiles, which will be used to train and refine the credit scores.

Points’ blockchain-based data collaboration protocol encourages partners to participate in zero-knowledge-proof based computation without exchanging original data. Any participating data owner can contribute their data to be shared and analysed by the network through Points’ anonymised digital dropbox. The dropbox enables file transfers which are authenticated through the use of smart contracts. This mitigates many risks such as single point of failure and DDOS that hackers use to get access to data to encourage a wide range of participants, whether traditional institutions, technology firms, or individuals.

Participating partners that contribute their data receive a financial reward in the form of Points’ token, PTS, which can be traded, sold or exchanged.

Bin Zhang, CEO and Chairman of the Board at Zhong Cheng Xin Credit Technology Ltd. and advisor of Points, stated: “Among the few practical use cases for blockchain technology, Points has demonstrated a groundbreaking solution with its data collaboration protocol that can contribute to a solution for the world’s credit problems for the unbanked, but this is just the beginning. We’re excited to be partnered with and invested in this cause.”

Besides Zhang, Points’ advisors include Shoucheng Zhang, a professor of applied physics and electrical at Stanford University and the founder of DHVC, a leading investor in the blockchain industry and early investor in Dfinity, Symbiont, Brave/BAT, Kyber Network; and Jason Lu, who was the former VP/CRO of Ant Financial and Yu’e Bao, the money-market fund, and previously Senior Director of Global Risks at Paypal.

Matthew Warner
Based near Windsor, England, Matthew Warner is an enthusiast for innovative, cutting edge technologies. He is a B.Eng. graduate in engineering with honors from the University of Warwick and also holds an PGCE in education degree. Matthew is a member of Mensa.