Intermediating Trust in Credit Delegation

There are several models as to how this intermediation of trust might work:

  1. Centralized models akin to typical credit scoring systems, where the scoring agency takes in an actor’s economic behavior and performance vs installment credit and creates a ranking

  2. Decentralized models where a range of actors provide reputation scoring for participants based on their interactions with the participant

  3. Centralized scoring performed by intelligent algorithms or credit oracles. One way this could work is with a zero knowledge proof operating within an enclave: an actor could present the algorithm with an encrypted file of the necessary information to create a credit score. The algorithm, running within an enclave, would decrypt the file within the protected zone and run the score. Noone except the provider would have access to the unencrypted data, and the ZK algorithm would store and publish only the final scoring, not the data used to prepare it.