1.Abstract

This text proposes a new blockchain architecture based on a credit check system called Proof of Credit (PoC). PoC is used to verify the credibility of nodes and addresses and encode validated credit data into the ledger. It is a data structure that only accumulates. When used in conjunction with consensus algorithms such as Proof of Work (PoW) or Proof of Stake (PoS), PoC can enhance the trustworthiness of nodes and addresses.

The chain built on the PoC algorithm allows the permanent and tamper-proof addition of previously verified historical credit records, which were traditionally required to be validated in each individual transaction. This process is creatively achieved through privacy computing and federated learning technologies, whereby the anonymity of data and the privacy of user are guaranteed, while the results are stored on the chain and can be publicly accessed. This also means that for any blockchain transaction, participants do not need to have knowledge of the specific data of their transaction counterparts in order to obtain the results of their credit assessments.

Trustworthy credit data includes:

  1. Identity verification and Know Your Customer (KYC) information

  2. Credit history

  3. Smart contracts

  4. Social network data

  5. Asset ownership

  6. Payment history

  7. Decentralized identity assessment

All of this is carried out in a secure environment with 100% privacy protection. This architecture is named "Credit Check Chain", hereinafter referred to as CCC (3C).

This article also proposes three algorithms for encoding credit data to maintain the PoC ledger attributes.

Credit Feature Generation: Based on anonymized data, generate features related to credit scores.

Differential Privacy: Introduce differential privacy techniques to prevent privacy leakage of specific individuals.

Credit Score Calculation: Use anonymized and differentially private protected data to calculate credit scores.

At the same time, all privacy data will be encrypted using the asymmetric encryption algorithm RSA256. Each participant has a pair of public and private keys. Data is encrypted with the public key and can only be decrypted by the private key holder.

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