Bloom aims to provide a decentralized credit scoring system that can be used globally.
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What does the company/project do?
Bloom is a protocol for assessing credit risk through identity verification and the creation of a network of peer-to-peer and organizational creditworthiness vouching (“credit staking”). Basically, it provides a decentralized credit scoring system that can be used globally.
The project aims to solve the problems with the current credit rating system – incompatible cross-border credit scoring, backward-looking credit assessment, risk of identity theft, and outdated/uncompetitive credit scoring ecosystem.
Bloom is developing three main components:
BloomID establishes identity and creditworthiness. Third parties can publicly vouch for others’ identity information, legal status and creditworthiness. These third parties can be friends, family, peers or organizations who earn revenue by evaluating a user’s credentials.
BloomIQ is a decentralized system that manages credit history. One of its primary goals is to allow a user to import existing credit history to this system.
BloomScore calculates credit risk. It is a dynamic indicator of an individual’s likelihood to pay debts that adapts to the maturity of a user’s credit history.
What are the tokens used for and how can token holders make money?
BLT token is both the currency and scoring enhancement mechanism of the Bloom network.
Identity attesters and risk assessors on the Bloom network can set prices and receive payment for their services in BLT tokens.
It also serves as the proposal and voting token to guide the evolution of the Bloom credit scoring system.
As BLT tokens are needed to participate on the Bloom protocol, the more users and activities the protocol has, the more valuable BLT tokens should be.
- The Equifax hack in September 2017, which allowed attackers to obtain crucial personal identity information for 143 million people, shows that a decentralized and secured credit scoring system like the Bloom protocol is much needed.
- Bloom is a protocol that other lending platforms can build on top of, meaning that Bloom will be mentioned anytime it is being used by a lending platform. In crypto, news flow is one of the factors that drive liquidity and price so this is important.
- The co-founders all have impressive credentials, with Alain and John being in the identity space since 2013.
- The white paper is well written and covers ways to prevent exploits of the protocol, for example, users creating a new BloomID after ruining the original one, or users manipulating BloomScore by creating fake BloomIDs to vouch for themselves. This shows that the team has put a lot of thoughts into the technical side of the project and shows the team’s competency.
- The team has not developed any proof of concept/beta, so essentially this project is still at the white paper stage.
- The project has a high hard cap of $50 million, the majority of which will be used for user acquisition. This makes sense from a business perspective, but in general, the higher the starting market cap for a project, the lower the potential return for ICO participants. Therefore, we believe the attractiveness of the ICO depends on how much funds are raised.
- It looks like all the co-founders are working on Bloom on a part-time basis while they are also working on other businesses that they have founded. It is unclear how much time they are able to allocate to Bloom.
- There is no estimated completion timeframe for the milestones listed in the roadmap, so we are unsure when the protocol will be completed and ready to roll out.
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