The AMA session co-hosted by CoinRank and Credit Link covered aspects of on-chain credit, its technologies, and potential applications. Participants discussed opportunities for Web3 and traditional finance.
The Trillion-Dollar Potential of On-Chain Credit
Participants agreed that the global credit market exceeds 300 trillion USD. The traditional system relies on banks and credit bureaus, creating low efficiency. Helen (April) stated that the tokenization of real-world assets and the rapid growth of stablecoins open vast opportunities for on-chain credit.
Credit Link's Focus on On-Chain Credit Practice
Havo from Credit Link pointed out that the blockchain holds vast amounts of verifiable data, but most users cannot utilize it. Credit Link aims to solve this problem using AI and machine learning to generate credit scores and reports. He emphasized that an on-chain credit system will become central to DeFi.
Comparing On-Chain and Traditional Credit Models
Guests noted that the two credit systems will operate in parallel, but on-chain credit has clear advantages in transparency and efficiency. Traditional credit relies on slow verification processes, while on-chain can provide instant settlements.
The AMA highlighted the massive potential of on-chain credit and Credit Link’s role in this emerging field. Implementing on-chain credit could strengthen the link between traditional finance and Web3.
