Bloom is a completely decentralized end-to-end protocol (Bloom Protocol) based on the Ethereum blockchain for identity verification, risk assessment, and credit scoring. Bloom utilizes a decentralized technology platform to improve personal information collection and evaluation systems, enabling traditional and digital currency lenders to effectively serve billions of people who currently lack bank accounts or credit scores.

Vision

Bloom aims to address the five major flaws in todays global credit evaluation systems:

• High risk of identity theft: In the lending process, borrowers must provide all personal information. This information is vulnerable to hacking attacks and can easily be misused by others to fraudulently obtain illegal loans.
• Limited cross-border applicability of credit scores: Currently, credit records do not transfer between countries. People who move to new countries must start from scratch to establish new credit histories.
• Singularity of credit evaluation methods: Currently, most credit evaluation systems heavily rely on loan repayment history, making it difficult to assess the creditworthiness of individuals who have never taken out a loan.
• Lack of scalability in credit evaluation: In regions with underdeveloped financial risk control systems, lenders lack comprehensive databases for identity verification and credit scoring, making it difficult for borrowers to obtain loans.
• Lack of competition in credit scoring systems: Currently, credit evaluation data is highly centralized. In most countries and regions, one or a few institutions dominate credit evaluation, leading to a lack of competitiveness in the credit risk assessment system.

Solution

Bloom can utilize a decentralized technology platform to improve personal information collection and evaluation systems, enabling traditional and digital currency lenders to effectively serve the billions of people who currently lack bank accounts or credit scores. The Bloom technology system consists of three main components: BloomID, BloomIQ, and BloomScore.

• BloomID: A global consortium identity system that allows customers to verify their personal identities and legal information, publicly vouched for by independent third parties.
• BloomIQ: A reporting and tracking system that records an individuals current and past debt statuses, linked to the BloomID system and stored on the InterPlanetary File System (IPFS) after encryption.
• BloomScore: A dynamic and inclusive indicator system that evaluates each persons likelihood of repaying debts based on changes in their credit status. This system analyzes data from the BloomID and BloomIQ systems to make judgments.

Features

1. Voting on the technical system: Bloom tokens function as voting tokens. As a mechanism for improving the grading and calculation procedures of the BloomScore system, this ensures that the Bloom technology system can evolve and maintain an effective credit evaluation system in response to changing user needs.

2. Review and validation of parties: Providers of payment history and lenders need to submit materials to the Bloom ecosystem to prove their credibility, business model, and why their data should be included in the BloomScore system. These entities will pay application fees in Bloom tokens, and Bloom system users will vote on their eligibility, receiving a portion of the fees paid by these entities.

3. Network currency: The Bloom network system will set prices and charge a certain number of Bloom tokens as service fees for identity verification and risk assessment.

4. Invitation system: When the Bloom network system is in its early stages and lacks enough validators, it may be vulnerable to network attacks. To increase the resistance of the Bloom network system, clients need to pay a portion of Bloom tokens as collateral when inviting other clients to join the Bloom system.

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