Decentr Integrates Chainlink to Provide User-Centric Social Reputation Scores to DeFi
PDVs can be utilized by any smart contract protocol via Chainlink to assess an individual’s risk profile based on different data metrics they provide, such as KYC information, past on-chain transaction history, portfolio size, and many more possibilities.
PDVs can then be applied within DeFi dApps, similar to how credit scores are used today, to enable users to receive better interest rates on loans, reduce their collateralization ratios, receive discounts on trading fees on exchanges, and many potential use cases not yet explored. In some cases, where PDV is sufficiently high, it may even lead to complete removal of collateralization altogether, allowing DeFi to reach near parity with traditional financial markets.
In addition to Decentr using Chainlink to serve as a quasi decentralized identity data provider to dApps, Chainlink can also be used to retrieve and validate additional data about users that may help provide more context in the calculation of their PDV. This can include simple retrieval of web data or involve routing complex calculations about a user to a big data environment like BigQuery to gain deeper insights.
A Deeper Dive Into PDV
Decentr’s key innovation is allowing users the ability to leverage their social reputation and turn it into an economic value, “currency”, used within DeFi protocols. Decentr does this by securing user data from different sources through their browser and aggregating it into what we call a “Personal Data Value” (PDV). PDV can be described as a personalised “exchange rate” between currencies that users apply at the point-of-transaction to reduce the cost of on-chain services or products. Our system of data control and ownership gives payments and trades more value for users who choose to own and leverage their data across other composable protocols.
As described in the Decentr Whitepaper, the PDV could be made up of a variety of metrics, such as KYC and AML information, impressions from various social media platforms, on-chain activity, and much more.
In order to plug PDV data into different applications across blockchains, we require an oracle. Chainlink is a decentralized oracle network that serves as a secure and reliable bridge between on-chain smart contracts and the vast ecosystem of off-chain data resources including web APIs, enterprise systems, cloud providers, payment systems, other blockchains and more. It is the most used and fastest growing decentralized oracle network in DeFi, securing $1.5B+ in USD value live on mainnet for leading protocols such as Aave, Synthetix, Bancor, and more.
We chose Chainlink over other solutions to bridge the gap between PDV data and smart contract enabled blockchains because Chainlink has a large and growing collection of independent, security reviewed node operators, it’s being integrated across the leading blockchains, and it provides access to any credentialed off-chain API to expand the resources available to PDV. This simplifies our integration process and creates substantial distribution potential across chains for our PDV data feed.
Decentr’s Roadmap with Chainlink
Decentr will start out as an external API, which serves as a reliable data feed that blockchains can query through Chainlink oracles to receive specific PDV data. Chainlink’s external adapter for Decentr gives Chainlink Nodes the ability to share this data, which can be ported across any protocol or DeFi solution that is integrated with Chainlink. This also includes blockchains that Decentr is currently building on, such as Ethereum, Tomochain, Holochain etc.
To provide this data, Decentr is deploying a docker container with Cerberus storage (proprietary storage service) along with Decentr’s native blockchain protocol. Decentr plans to integrate Chainlink nodes into the same docker. Once the Chainlink nodes are up and running, Decentr will deploy oracle contracts and add nodes to them. Jobs can then be added to the oracles, wherein jobs will receive requests for the specific resources of which Decentr will send the data through the API to the Node that passes it along to the consuming smart contract.
CTO Nikita Anikeev says “Integrating Chainlink positions us to deliver immense value across DeFi, especially in the growing decentralized lending markets where additional data about borrowers can help reduce interest and collateralization rates. We can use Chainlink to provide key data about users to DeFi protocols on any blockchain, ultimately freeing up idle capital that otherwise would be overcollateralized in protocols.”
The future is bright with Chainlink, and integration will grow Decentr’s potential for impact across the decentralized landscape both in DeFi and across other use cases.
Decentr is an open decentralised platform that captures the value of secure user data and returns this value as payable, data-backed “currency” to the user. The DEC token is the building block of the entire Decentr Deconomy.
Decentr’s “data-as-value” paradigm means users see a correlated decrease in the cost of products and services bought online, via Decentr and their “dPay” system, while at the same providing superior APR’s on consumer crypto loans made via users dWallet and Decentr’s consumer crypto dLoan features.
This (necessary) extension of DeFi 1.0, delivers user-centric financial services to anyone, when they want it and how they want it, regardless of their net worth.
If you want to get your smart contract connected to off-chain resources or sell data/services to the Chainlink network, visit the developer documentation and join the technical discussion on Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is a general-purpose framework for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. Use Chainlink to connect to data providers, web APIs, enterprise systems, cloud providers, IoT devices, payment systems, other blockchains, and much more.
We look forward to answering all your questions. Please find our official links below.
Official Links for Decentr:
Official Email Address: Admin@decentr.net
Official Website Link: https://decentr.net/
Official Telegram Discussion Group: https://t.me/DecentrNet
Official Telegram Announcements Channel: https://t.me/DecentrAnnouncements
Official Twitter: https://twitter.com/DecentrNet
Official Medium: https://medium.com/@DecentrNet