Equifax Data Breach Opens Door for Blockchain Credit Apps
· March 5, 2018 · 10:30 pm
As individuals continue to lose faith in Equifax and traditional credit-tracking agencies, blockchain credit applications are proving to be far more attractive options.
Blooming on the Blockchain
Last week, the massive consumer credit reporting agency announced that its equally massive 2017 data breach was actually worse than everyone thought. According to Equifax’s new estimations, 147.9 million people have been affected by their failure to protect individuals’ information – which is 2.4 million more than originally thought.
Blockchain-based credit-score applications like are unsurprisingly stepping in to provide a safer alternative to Equifax, and are proving themselves to be more attractive solutions.
Bloom is an Ethereum-based decentralized app, commonly known as a “dapp,” which purports to keep individuals’ personal data safe from data breaches, thanks to the blockchain’s anonymous and private qualities – and people are paying attention. Bloom’s official website actually went down yesterday following Equifax’s announcement, as a wave of new users clamored to check out the competition.
Still, Bloom’s total number of signups is still extremely low when compared to non-blockchain apps – which is to be expected, given the fact that blockchain technology is still so new. In fact, the app itself hasn’t even been operational for two months. Co-founder Ryan Faber VentureBeat:
Since blockchain technology is so new there still exists quite a bit of technical friction to onboard users to a dapp. You currently need to have metamask and a decent grip on how this emerging technology works. We believe that we can be the biggest dapp by the end of 2018.
Bloom is particularly attractive when compared to traditional organizations like Equifax because it affords both traditional and digital currency lenders the ability to work with virtually anyone – including those who can’t get a credit score or prefer to keep their financial data out of the hands of unsecured organizations like Equifax.
Furthermore – unlike Equifax – Bloom lets users create a BloomID, which acts as a global identity which can be publicly verified by third parties. Meanwhile, BloomIQ keeps track and reports users’ current and past debt by encrypting and storing the information on IPFS. Finally, there is a BloomScore, which acts just like any other credit score and illustrates how reliable a user is when it comes to debt repayment.
With data breaches like Equifax’s posing some serious cause for concern, expect to see the blockchain bully its way into the field of credit reporting.
Do you trust Equifax, or would you rather have your credit information secured on the blockchain? Let us know in the comments below!
Images courtesy of Shutterstock, Rhona Wise/EPA-EFE
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In an published today, decentralized ad exchange platform AdEx has announced that it will be holding a token sale, which is scheduled to begin June 30th, 2017. The project seeks to raise 40 000 ETH over the course of the crowdsale.
About the AdEx Project
Current advertising networks like Google AdSense, Adsterra, ShareASale, and others are fraught with problems, not the least of which are ad fraud and lack of consumer privacy.
AdEx aims to change all of that by developing a decentralized blockchain-based ad exchange that will benefit all parties – advertisers, publishers, and consumers – while bringing data security, fraud protection, clear and accurate reporting, and numerous other advantages of blockchain technology to the online ad market.
Co-founder and CEO of AdEx Ivo Georgiev explains:
The solution offered by AdEx seeks to benefit all parties involved in the online advertising ecosystem, which means end users as well as advertisers and publishers, while removing unnecessary and downright risky elements currently associated with centralized infrastructure.
Once launched, the AdEx Network will enable transparency for advertisers, better ad serving control for publishers, and more control over privacy and ad preferences for consumers.
The Technology Behind the AdEx Platform
Developed on the Ethereum blockchain, one of the core strengths of the AdEx platform will be its use of smart contracts. A smart contract is a piece of software, executed on the Ethereum blockchain, that contains all of the terms, rules, and regulations for negotiating the terms of a contract. It automatically verifies the contract and then executes the agreed upon terms.
In the case of AdEx, these smart contracts will ensure the removal of third party intermediaries and ensure complete transparency of the entire system, from ad selection and tracking to bidding and payment. The complexities of choosing and tracking ads and facilitating bidding and payment will be defined in these smart contracts, simplifying and securing the entire process.
To mitigate the high costs associated with storage on the blockchain, AdEx will be utilizing (InterPlanetary File System) to host advertising related media such as images, videos, and larger data. Developed in 2014 by Protocol Labs, IPFS is described as a peer-to-peer hypermedia distribution protocol that allows for fast, secure storage and retrieval of data.
The AdEx team is also working on prototypes that incorporate several second layer solutions that will operate on top of Ethereum. These solutions will enable advertisers and publishers to easily interact while avoiding any potential blockchain limitations regarding speed and transaction fees. AdEx plans to implement IOTA as a future second layer to further improve the platform’s scalability.
Because AdEx is designed to be compatible with most of the existing ad tech industry, the process of adoption and integration by publishers and advertisers is easy. AdEx can be used in websites, mobile and desktop applications, and even embedded devices.
ADX Tokens and the Token Sale
The crowdsale, which begins on June 30, 2017, and runs through July 30, 2017, will fund the initial development and adoption of the AdEx advertising network. AdEx tokens (ADX) will use ERC20, a standard protocol for smart contract systems powered by native tokens. This will ensure the platform’s compatibility with other Ethereum-powered solutions.
In order to estimate and optimize the perfect supply of native tokens for the token sale, AdEx has partnered with , the developer of WINGS DAO. The project also engages the social graph of the WINGS DAO crypto-experts to maximize potential project backers who can serve as product champions and evangelists, allowing AdEx to quickly go to market.
The terms of the ADX token sale are as follows:
Crowdsale duration: 1 month
Start date: June 30, 2017
End date: July 30, 2017
Total number of ADX tokens: 100,000,000
Number of ADX tokens available for sale: 80,000,000
Currencies accepted: ETH
Token price: 1 ETH = 900 ADX
Campaign cap: 40,000 ETH
Over the course of the token crowdsale, 80% of all ADX tokens will be available for distribution among the supporters. Of the remaining twenty percent, 16% will be reserved for developers and advisors, which will be vested for a year to ensure the smooth development of the platform. The remaining 4% will be distributed between WINGS DAO community and the bounty campaign participants, as shown in the picture below.
During the campaign, only ETH transactions will be accepted. The address for contributions will be published at once the token sale has begun.
Future Plans
The first AdEx advertising platform prototype is scheduled for release as early as February 2018. It will include basic core features such as an ad bidding system, a front-end for advertisers publishers, and an SDK for publishers. The prototype will primarily focus on native and display advertising.
To ensure transparency, the prototype will undergo a stringent audit by an independent third party prior to release and its code will be completely open-source.
In the year following the successful release of its prototype, AdEx will focus heavily on business development as determined by both market needs and community feedback. During this time, AdEx plans to roll out major improvements to the platform, including user targeting and reporting, full integration of SDK, and video advertising.
By January 2019, AdEx plans to release AdEx v.2, which seeks to accommodate the needs of the increasing number of publishers and advertisers using the platform. The v.2 solution will essentially be a complete technological revamp, scaling the entire solution upward and possibly extending to other blockchains such as Aeternity or RSK.
Do you think the AdEx advertising platform will adequately address the shortcomings and failures of the current online advertising industry? What do you think is the most exciting aspect of this project? Let us know in the comments below.
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