RCN is excited to announce that it has successfully integrated Proof of Humanity as its first Decentralized Identity provider! The integration, which is already live on the Credit Marketplace, allows its users to verify another user’s identity without leaving the platform, and will likely serve as one of the first building blocks for the development of Undercollateralized Loans.
While RCN has been researching and testing different Decentralized Identity (DID) solutions since 2020, once Proof of Humanity — developed by Cooperative Kleros with the collaboration of the Democracy Earth Foundation — was released it became clear that it represented an ideal first step for the inclusion of user identities on the Credit Marketplace, for both its simplicity and robustness.
The current integration includes a user profile for every lender or borrower whose address is linked to a Proof of Humanity account, which displays a name, a description, a photo, a short presentation video, an Ethereum address and links to the associated Etherscan and Proof of Humanity profiles. This profile can be easily accessed by clicking on the user’s Ethereum address in any section of the Credit Marketplace.
This first version of a Decentralized Identity profile is a very important step in the Credit Marketplace’s development roadmap, because it enables the creation of Undercollateralized Loans based on trust. In the future, this profile could be used by a lender to assess the reliability of a borrower and decide whether to fund a loan with less than a 200%, 150% or even 100% Collateral Ratio.
About this possibility, RCN’s Lead Developer Nicolas Menendez commented:
“The inclusion of identity features in DeFi products signals the beginning of a new phase in the ecosystem’s development. If blockchain-based lending intends to compete with traditional credit products the need for overcollateralization has to be eliminated, and it’s very exciting to see RCN and Proof of Humanity exploring potential solutions to that problem.”
- Nicolas Menendez, Lead Developer at RCN.
On the same note, Cooperative Kleros’ President Federico Ast added:
“Decentralized Identity is a critical building block for Decentralized Finance. The combination between RCN’s platform and Proof of Humanity’s infrastructure will result in more secure, better loans and more financial inclusion for all.”
- Federico Ast, President at Cooperative Kleros.
Regarding this potential for credit accessibility, Democracy Earth Foundation’s President Santiago Siri explained:
“Enabling a social layer on Ethereum can expand the reach of credit anywhere with an Internet connection. RCN’s quick adoption and implementation of Proof of Humanity shows how simple it is to build with it.”
- Santiago Siri, President at Democracy Earth Foundation.
This synergy between credit and identity projects marks an important milestone for the DeFi ecosystem, as it paves the way for the development of borrowing and lending products oriented towards more traditional use cases and designed for users which are not currently served by the industry.
About Proof of Humanity
Proof of Humanity is a system developed by Cooperative Kleros with the collaboration of the Democracy Earth Foundation, which combines webs of trust, reverse Turing tests, and dispute resolution to create a sybil-proof list of humans.
To learn more visit the project’s website or subscribe to its Telegram.
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