Why Is Credmark The Solution?
The data integrity problem is a result of the fact that blockchain data is high availability, low normalization data, as multiple articles by Credmark and others have pointed out over the past few years. This means that analytic platforms in the DeFi ecosystem have no real standard, causing them to display widely varied results for the same indicators. Lack of standardization isn’t sustainable and in reality shouldn’t be a problem in the first place because public blockchains are completely transparent.
The risk modeling problem in blockchain is complex because it not only requires specialized knowledge in modeling various protocols, which accurately predict risk with high certainty, but also entails solving the data source problem.
Credmark solves all of these different problems thanks to its novel protocol which is composed of:
- Fine-tuned data aggregation and normalization.
- Incentivization to create robust risk data models (and validation).
- Transparent verifiable devops platform for running models.
- Governance system that enables tuning of the critical protocol parameters.
- Oracle system for providing trustless data as APIs for other protocols and web3 applications.
- Multiple smart contracts to improve the UX for users using the risk models.
In the next section each of these components will be explained in further detail.