Distributed Electronic Record for Verified Risk Assessment
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional processes for service providers to assess consumer risk are time-consuming and rely on unverified credit score ratings from bureaus, lacking transparency and trustworthiness, as they often require repetitive data collection and may not fully understand the criteria for decision-making.
Innovation Solution
A system generates electronic records signed by originating service providers, stored in a distributed environment, allowing verification by other providers using public keys, and uses hashed or encrypted electronic identifiers to secure user data, enabling secure and efficient access to interaction records for risk assessment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If service providers collect consumer-specific details from multiple sources to assess risk, then the reliability of risk assessment improves, but the time required for service provision increases
Solution Approach 1:
The system pre-collects and stores consumer interaction records with service providers in a distributed ledger before they are needed for risk assessment. When a consumer applies for service, the verification network already has authenticated records of previous interactions, credit checks, and service provisions available for immediate retrieval, eliminating the need for real-time data collection and accelerating the service provision process while maintaining comprehensive risk assessment capability
Solution Approach 2:
A distributed verification network acts as an intermediary between consumers and service providers, maintaining an authenticated ledger of consumer interactions. This intermediary layer consolidates data from multiple sources (credit bureaus, employers, previous service providers) into a single verified record that any service provider can access, eliminating the need for each provider to independently collect and verify information from multiple sources
2Ease of operation
If service providers use credit bureau ratings for risk assessment, then the ease of operation improves, but the transparency and trustworthiness of the assessment deteriorates
Solution Approach 1:
The distributed ledger provides transparent feedback to all participants about the consumer's interaction history with service providers. Each record in the ledger includes details of previous services provided, credit checks performed, and outcomes, allowing service providers to see not just the credit rating but the actual interaction data that led to it. This transparency is maintained while keeping the system easy to operate through automated verification processes
Solution Approach 2:
The system creates verified copies of consumer interaction records and stores them in the distributed ledger. Instead of relying on proprietary algorithms from credit bureaus, the system maintains transparent copies of actual interaction data (loan applications, credit checks, service provisions) that can be independently verified by any service provider through the verification network, providing both ease of access and full transparency
3Reliability
If consumers provide personal information to each service provider, then the completeness of data for decision-making improves, but the security risk increases
Solution Approach 1:
The distributed ledger serves multiple functions simultaneously: it stores consumer interaction records, verifies their authenticity through cryptographic signatures, provides transparent access to authorized service providers, and maintains security through decentralization. A single ledger instance serves all service providers in the network, eliminating the need for consumers to provide information to multiple separate systems while maintaining comprehensive data availability for decision-making
Solution Approach 2:
The verification network acts as a secure intermediary that manages consumer data. Instead of consumers directly sharing personal information with each service provider, the verification network mediates access by providing verified records to authorized providers. This intermediary layer maintains security through cryptographic authentication while ensuring complete data availability for risk assessment decisions
Data Source
AI summary
Described herein is a system in which an electronic record is stored on a distributed environment. In this system, a computing entity that receives an action request with respect to an account may receive or generate an electronic identifier for that account. The computing entity may then identify an electronic record comprising a number of interaction records related to the electronic identifier within the distributed environment. The computing entity is then able to request account-specific information directly from an originating entity for each of the interaction records. In some embodiments, the computing entity may separately determine a level of trust to be associated with each originating entity. In some embodiments, the computing entity may determine a risk level to be associated with an action indicated in the action request based on the received account-specific information.