1. Building the Framework
2. A New Era of Financial Products
3. Technological Innovations Driving Sonic’s Success

Sonic Blockchain, formerly known as Fantom, plans to offer credit scores for digital wallets. The initiative aims at tapping into the $11 trillion global unsecured lending market by enabling decentralized finance (DeFi) platforms to offer traditional loan products.

Building the Framework

Sonic Labs began developing this credit scoring system in 2021. The system processes data from over 500 million wallets, 15 million loans, and 54 billion transactions. This data processing effort spans multiple blockchains and results in a scoring model for blockchain addresses. Importantly, the development eliminates the need for KYC, allowing users to maintain privacy. Sonic will reportedly be the first blockchain to offer on-chain access to wallet scores, enabling developers to create decentralized applications for credit-based financial products.

A New Era of Financial Products

Sonic's introduction of credit scores opens up DeFi to a variety of traditional loan products, including: * Personal loans * Payday loans * Credit-based insurance * Adjustable-rate mortgages * Buy Now, Pay Later services * Postpaid mobile plans According to Andre Cronje, this opens the door to users who previously could not access such financial services due to the lack of traditional credit scores.

Technological Innovations Driving Sonic’s Success

One of the standout features of Sonic’s blockchain is its fast transaction finality. On September 8, Andre Cronje revealed that Sonic’s testnet achieves transaction finality in just 720 milliseconds, significantly faster than competing platforms. Cronje also noted that the rapid finality, combined with very low latency (700 milliseconds), gas subsidies, and native account abstraction, creates an efficient and user-friendly ecosystem, removing barriers like the need for gas funds in user wallets. The Sonic testnet went live on September 6, with the mainnet launch expected to follow soon.

Sonic Labs integrates credit scores and taps into the trillion-dollar unsecured lending market with a focus on speed, scalability, and privacy. The native token FTM has risen 11.3% over the last 24 hours and is trading at $0.4914 at the time of writing.