Decentralized Identity in a Defi world - What Hive or LeoFinance can do?
I came across this article outlining what Defi is recently: A beginner's guide to DeFi
The author introduces seven important elements of #defi. It's a good read for someone what wants to learn the basic things about decentralized finance.
One thing in particular attracts my attention, that is, the 5th item she mentions:
Decentralized Identity
Identities are used in the context of smart contracts for things like assessing your creditworthiness for a decentralized loan.
Furthermore, you can read the following paragraph
Decentralized identity and reputation services could offer something similar by including attributes such as social media reputation, history of repayment of previous loans, vouching from other reputable users, and the like. Making this useful for actual financial decisions will require a lot of trial and error on the specific data points to use and the corresponding collateral requirements, and we are just at the beginning of that process.
Does this sound intriguing for us the Hivers? Yes! what we have on Hive is not only a reputation score (which might need some improvement), but also invisible reputation among community members. Besides, we have a whole history on chain for Hivers and some of it might be highly relevant to financial and credit status.
What if one day Hive or and 2nd-layer protocol can introduce more financial services?
Or maybe just link Hive accounts with Ethereum accounts to connect defi and decentralized identity?
That would be AWESOME! It will open up a huge space to explore!
Maybe this?
Interestingly, in the long run, DeFi with decentralized identity systems could become another option for people locked out of traditional financial systems. For example, there are one billion people without an official ID, and ~50% of women in low income countries lack an ID. However, many of these people do have smartphones. So it’s possible that once decentralized IDs work in the developed world, that they could be rapidly exported to the developing world as a leapfrog technology -- much like smartphones themselves.
This is as far as I can think of. ^_^
Posted Using LeoFinance Beta
