Blockchain Credit Report Certification via Timestamped Hashing
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Solution Overview
Problem
The frequent inquiries into a borrower's credit history, whether soft or hard, can negatively impact their credit score and deter lenders from approving new lines of credit, as multiple inquiries are often viewed as a sign of financial instability or high need for funds.
Innovation Solution
A system that certifies a credit report using a hash algorithm based on a timestamp, generating a portable identifier which is added to a blockchain, allowing secure transmission and access without modifying the credit score, and triggering a hard inquiry only when necessary.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multiple lenders submit inquiries into the borrower's credit history to assess creditworthiness, then lenders can accurately gauge the borrower's reliability, but the borrower's credit history is adversely impacted and potential lenders are deterred
Solution Approach 1:
The patent creates a certified copy of the credit report with a portable identifier that can be shared among multiple lenders without requiring them to submit additional inquiries to the credit bureau. This copy serves as a reliable alternative that doesn't impact the borrower's credit history.
Solution Approach 2:
The system performs a preliminary certification of the credit report with a timestamped hash algorithm before multiple lender inquiries occur. This preliminary action creates a trusted reference that prevents the need for repeated inquiries, thereby avoiding credit history impact.
2Reliability
If a hash algorithm is applied to the credit report to generate a portable identifier and add it to a blockchain, then data integrity and trustworthiness are improved, but system complexity increases
Solution Approach 1:
The patent introduces a blockchain network as an intermediary layer that hosts the certified credit report and portable identifier. This intermediary provides trust and verification services without requiring the lending system itself to become complex, as the blockchain handles the cryptographic verification.
Solution Approach 2:
The patent extracts the verification functionality from the lending system by using the blockchain network to store and verify the portable identifier. This separation allows the lending system to remain simple while relying on the blockchain's inherent security and integrity mechanisms.
Data Source
AI summary
Techniques for certifying a document and for securely transmitting access to the document across a blockchain network are disclosed. A document, which details results of a soft inquiry executed against a user's credit history, is accessed. A hash algorithm is applied to the document to certify it. The hash algorithm is based on a timestamp indicating when the document was created. Applying the hash algorithm also generates a portable identifier reflecting the document is certified at the time indicated by the timestamp. The portable identifier is added as a record to a blockchain. The record is transmitted to a second computer system using public and private keys.