According to BeInCrypto, Coinbase CEO Brian Armstrong stated that on-chain reputation will become the next-generation credit scoring system, potentially replacing the FICO score, which currently dominates 90% of top loan decisions in the United States. Armstrong pointed out that public ledgers can already record repayment history, wallet age, and counterparty behavior, and any lender can access the same on-chain records. Currently, Ethos Network is rating wallets through mutual endorsements among users, and the lending application Credifi, based on these ratings, can provide unsecured loans of up to $3,000 to wallets with scores of 1800. Since on-chain addresses are not tied to real-world identities and borrowers can create new wallets at any time, whether on-chain reputation can effectively price real risks remains to be validated by subsequent default rate data.
