Access to crypto loans has been a huge problem globally. With growing demand for crypto borrowing and lending a consumer access has become a must. However, the problem is set to be solved thanks to Bloom Token (BLM). This is a platform that will see individual creditworthy data shared on blockchain across the borders.
As of today, sharing of personal financial data is restricted to individual countries but the Bloom ecosystem. You do not have to start from scratch to build a new credit score when you move abroad. The traditional credit score systems have denied millions of people the credit facility.
Crypto Lending and Borrowing Demand on the Rise
With the crypto lending on the rise, the problem of defaulting is also rearing its ugly head. Bloom is set to give those who deserve credit a level playing ground. You cannot be denied the facility simply because you do not have a credit history.
Bloom Token (BLM) ensures that the underbanked get increased freedom to get loans across the borders. It is also giving the youth to access a facility as opposed to the traditional credit facilities that are pegged on age and proof of income.
How Does Bloom Work?
A peek preview of how Bloom works, the system is built on three prong pillar:
The first function lies under the BloomID. This allows you to create an identity that is unique and globally recognizable. This gives the Bloom platform goers access to loans from any part of the world. This shields your personal data from third parties.
The next layer is the BloomIQ which is a debt tracking and reporting. It derives it data from user debt obligation. This function is enabled by the user unique BloomID. This function weeds out any crypto loan defaulters from other blockchain lending platforms.
Lastly, Bloom comes with its native system that determines an individual creditworthiness; the BloomScore. Once these three parts are put together in a BloomCard, the system will be able to keep a record of user purchases to determine the BloomScore. No vetting, everything is automated with no geo-restrictions.
According to Daniel Maren, co-founder at Bloom:
Bloom brings credit scoring to the blockchain, its mission is to build a robust global credit infrastructure [that] reduces fees, increases accessibility to credit, and makes credit scoring fair.
