Blockchain builds an independent credit record that is always trustworthy

Blockchain, especially the blockchain represented by Ethereum, is a fully distributed database + distributed computing system built on the Internet. The characteristics of this system are:

1. There is no centralized node providing data or computing services, and the rights and obligations of any node are equal.

2. Information cannot be tampered with. Once the information is verified and added to the blockchain, it will be stored permanently. Modifications to the database on a single node are invalid. Therefore, the data stability and reliability of the blockchain are extremely high.

3. The privacy is extremely high, and the encryption algorithm ensures that the private information of each party is encrypted and anonymous. At the same time, inquiries about other people's information must be authorized.

You can think of blockchain as the next generation of the Internet. So how can we use blockchain technology to build a decentralized, highly private, and third-party record system where information cannot be tampered with by anyone? This article explores this from one perspective.

Consider using blockchain technology to record loan contracts and performance to solve three key problems:

1. The loan contract and performance are permanently recorded in the blockchain. No one (including the platform) has the authority to modify or delete this information, which is a deterrent to the borrower and can reduce the default rate.

2. Whether it is an individual or a business, when you want to lend money to others, you can check the performance of the target object;

3. For lenders, the loan relationship and the performance of the borrower are private, and they can choose to keep it confidential, make it public for free, or make it public for a fee.

4. For the borrower, the only information disclosed is the time + the word "borrowed", and no more information;

5. On the blockchain platform, all personal ID cards and corporate unified credit numbers are used as unique identifiers; as shown in the following figure:

The loan contract relationship can be: C2C, B2B, B2C, and even C2B in the future. The loan relationship and performance record will be permanently recorded in the blockchain in the form of a contract account.

For scenarios where both the borrower and the lender are C-end users:

1. The registration process should be: both the borrower and the lender need to register on the platform and undergo identity verification;

2. Lenders can use the platform to query the borrower's borrowing summary: only the time + the word borrowing, and can learn the details for free or for a fee, depending on the information level set by the original lender (anonymous); 3. The borrower initiates a registration request (including the loan period), and the registration takes effect after the borrower and lender sign and confirm;

4. After the contract expires, the system will prompt the lender to provide feedback (a. The contract is performed normally b. The contract is extended (if the extension is extended, the borrower needs to confirm it again) c. The contract is breached, and the lender selects the information level: public, encrypted, or paid query;

For corporate users, it is an embedded usage scenario:

1. When establishing a lending relationship, the microfinance company (or P2P company) system registers and opens an account on the platform through the API, and initiates a request to register the lending relationship in the name of the borrower;

2. After the application initiated by the borrower is approved, the company system notifies the platform through the API that the lender has confirmed it;

3. After the contract expires, the platform prompts the lender to provide feedback (a. The contract is performed normally b. The contract is extended (if the extension is extended, the borrower must confirm it again) c. The contract is breached, and the lender selects the information level: public, encrypted, or paid query;

4. If the borrower applies for an extension and is approved, the company system will notify the platform in advance through the API that the contract is being performed normally and a new registration contract will be signed.

At this point, the decentralized, highly private, and information-untamperable third-party system built with blockchain technology has been basically completed. It should be pointed out in particular that Ethereum's smart contracts are needed to effectively implement related functions and deployments.