Approximately 27 percent of Americans are either underbanked or unbanked. While numerous economic factors contribute to the exclusion of more than 87 million Americans from the financial mainstream, foremost is America’s credit reporting system which, due to its monopolistic nature and lack of transparency, has proven resistant to innovation. This failure to progress has inhibited economic growth, put millions of Americans at risk, and cost Americans billions. The current centralized credit reporting system is prone to error. The Federal Trade Commission found that 20 million Americans have a significant mistake on their credit report, which could cost Americans as much as $400 billion. Security breaches are likewise common. The personally identifiable information (PII) of 143 million Americans was recently stolen from Equifax, costing each victim an average of $1,343. The absence of competition creates little incentive for American credit bureaus to improve accuracy and security.

A fully inclusive financial system requires an accurate, secure, transparent, global, and decentralized source of credit information. To accomplish this, Canonical is leveraging blockchain technology to create a decentralized repository of both traditional and non-traditional credit data that is more accurate and secure than incumbents. Due to the borderless nature of the blockchain, Canonical will be the backbone upon which a truly global credit system will be built.

Canonical democratizes credit data by giving users uninhibited access to and control of their credit data. Users will be notified when changes to their data are made, choose to permit or deny access to their credit data, and dispute records. Data furnishers will be compensated in a native token, incentivizing participation and accuracy of information since the token’s value will be proportional to the completeness and accuracy of the data the blockchain contains. Canonical will also develop a risk assessment marketplace where data scientists may propose risk models trained over anonymized and encrypted data, stripped of any PII, in exchange for the native tokens. The most accurate of these models will be then amalgamated for particular locations, market segments, etc., resulting in the most accurate suite of risk models possible.

Canonical is rebuilding the global credit system on a safe, accurate, transparent, monitorable, and inclusive foundation.

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