zCloak Space Script: Will On-Chain Credit System be a Hit in DeFi?

zCloak Network organized an online panel at 8 p.m. UTC+8 on July 5, 2023, titled “Will On-Chain Credit System be a Hit in DeFi?” The founder of zCloak Network, w3tester, and the co-founder of RociFi, Chris, attended this online panel. The following is a documentary transcript of it.

Cassiel: Hello everyone, welcome to today’s AMA, and we have 2 guests to be with us, who are the founder of zCloak network, w3tester, and co-founder of the RociFi project, Chris. For today’s panel, there will be 3 parts in total, firstly, we will have 2 general questions for tester and Chris to discuss, which are mainly about the background of the current DeFi industry, so that you can have a general idea about our topic.

Then we’ll move into the 2nd part, and I’ll ask a few detailed questions to each guest, which are mainly about the “on-chain credit system” and “on-chain lending business”. Lastly, if you have any ideas or questions for our 2 guests, then it’ll be a perfect time to ask. We can invite 1–2 audiences here to discuss. Let’s welcome our guests to give us a brief introduction about themselves and their projects!

w3tester: Hello everyone, I’m the founder of zCloak Network. Here is a little bit of background about what we do. zCloak is a privacy-preserving identity and ZKP computation project. The basic idea of the project is that we want to give data sovereignty to our users. We want users to really own their identity data and enable all sorts of computing progress to happen in their local device instead of in centralized servers in web2, so what we really want to achieve is to achieve user identity sovereignty in the Web3 world. Besides, we also want to help people to use their real-world identity data in Web3 applications without disclosing their privacy. So it is super exciting to be here today to discuss the potential use cases of identity credit scores with RociFi.

Cassiel: Okay, thanks a lot for tester’s introduction then, Chris, would you mind saying hello to the community?

Chris: Thanks Cassy, hi everyone, I’m really excited to be here. My name’s Chris. I’m one of the Co-founders of RociFi. We’re a DeFi protocol that enables high capital-efficient lending markets through on-chain credit scores that are powered by machine learning. The credit scores are derived entirely from a user’s EVM address. So we don’t require any off-chain pieces of information currently for users to be eligible for a more capital-efficient loan which is essentially a higher loan-to-value ratio which is approaching approximately 100% for some of the best-rated wallets that are out there. So we’re entirely web3 or Defi native in regards to the on-chain credit scores and much like zCloak. We want to empower users with their own on-chain data to be able to not only maintain that privacy but also derive utility from it. So the first element obviously for us is being able to increase capital efficiency within decentralized finance.

I’m sure a lot of people on this call realize that if you wanted to borrow from anyone else, you need to stake a lot more collateral than the value of the actual loan that you would be taking. We’re looking to make that more efficient for the end user so that they don’t have to put up as much capital. And then as this evolves over time we want to be able to create additional benefits for that user as well, to be able to leverage this great history of their on-chain credit behavior so that they can go take out to other projects for boosted rewards, whether that be through liquidity, mining, staking, governance, voting in DAOs or even being able to take to traditional finance players, who are now looking to tap into this to be able to offer you credit with this new line of data and information that you have built up carefully in this on-chain world because there is no faster-growing segment of finance, nor data sovereign to the user than what is happening within DeFi right now. And that is really the area that we’re looking to grow and cultivate for users to ultimately have a very large real-world impact, so very excited to talk about how the intersection of what we’re building at RociFi and also zCloak can help us achieve that.

Cassiel: Thanks a lot, Chris, and thanks for your introduction about RociFi, and I believe the audiences have a general idea about what you are building. So let’s move into the first part. As we know, DeFi is actually one of the most popular business models in the crypto world. So compared to the traditional financial business, what do you think are the advantages and disadvantages of DeFi projects? Maybe let’s get started with Chris.

Chris: Sure. So from the advantages of DeFi, there are tons of it, obviously, the efficiency, the global nature, the permissionless nature of it, all of that are the future. And the future is here and now and I do believe that DeFi is by far the killer application that we’ve seen thus far within crypto and blockchain more generally. The limitations of DeFi are really the capital efficiency where users are required to put up over 130 dollars of collateral to be able to take out 100 dollars loan, that is not really efficient for the end user, and that is not really how finance in the real world actually works. So 95% plus is done through traditional credit, meaning the under-collateralized. So for 100 dollars loan business or an individual can put up as little as 0% collateral or they can put up maybe 50% or fifty dollars of collateral for 100 dollars. And that is ultimately kind of the oil which moves the overall economy around the world. Don’t get me wrong, of cause there are negative aspects to that. And I think the on-chain transparency, immutability and a lot of other aspects of DeFi will help remove a lot of these negative externalities of credit issuance because you can see exactly where it’s going and where some of the risks are bubbling up that you can not see within the traditional system. But by far the biggest limitation, in my opinion, for decentralized finance, is kind of crossing that chasm into the mainstream.

In fact, we are still stuck in these dark ages of over-collateralization and RociFi was built to really start that process of moving to a more capital-efficient environment where now we’re pushing the boundaries up to 100%, a dollar for a dollar for loan-to-value loans and then eventually in the future we’ll push further and further into under collateralization, which can then route in or usher in these new different use cases again on-chain but then also off-chain in the real world as well.

Cassiel: Okay, thanks a lot. And that’s very clear to me. So how about tester? Would you mind sharing some of your ideas on that?

w3tester: When I think about DeFi, think about the concept that I learned a few years ago, I think I was in the year 2018 or 2019 something, that’s still early in the Ethereum community and we attended a workshop to learn about the concept of building all these existing financial infrastructures on a decentralized and permissionless network, which is gonna be available to everybody to use. And I think the idea was so powerful and fantastic and we were really thrilled with that at that moment. Then we learned about all these exciting projects in the early days, Compound, Arweave and Uniswap and other projects like that. We think this is the way to go, right? This is how people can do permissionless and inclusive finance use cases on a decentralized network.

But later, when we learn more about what is available and what is out there, we do see there are limitations for Defi applications. Some are from the applications themselves, some are from the chains that we have been using, for example, Ethereum, scalability issues, privacy issues and also the simplest fee for the transaction and if you want to use it for inclusive applications, it cannot be too expensive to transfer some tokens. And it was great to see that in the last few years, the basic infrastructure for blockchain and DeFi has been improving a lot. We have Layer 2. We have all these quick and less expensive ways to transfer funds. We have more defined infrastructures in Layer 1 that power our everyday financial activities. So all these things are great.

But we still see something that is missing somehow, and if you look at the Defi applications right now, as Chris has just mentioned, for example, for borrowing money, you need to over-collateralize a lot of your assets. In Ethereum, you cannot borrow much from it. And that’s a problem. The efficiency for borrowing and for this over-collateralization is not that good and that’s not what we want to see. I think in recent years, like this year or last year, people already started talking about introducing some of the people’s real-world credibility, credit score, things like that and also on-chain activities, the history of your account and etc on-chain. So I think we’re heading in the right direction. The RociFi project is providing an infrastructure for exactly this functionality, and zCloak is looking forward to using this function for on-chain applications and real-world use cases. So later maybe we can expand on this but overall I think with all the infrastructures we’re building. DeFi is really getting mature and I think we will be able to see more interesting use cases when we have introduced this real-world identity and also credit score to the Web3 world.

Cassiel: Okay, thanks for tester’s sharing. In general, as Chris and tester just mentioned, there is no doubt that capital efficiency is a problem of DeFi projects on the negative side, but blockchain technology also enables a lot of possibilities for them. However, not every project develops as expected. So what do you think of the development dilemma on current projects and maybe what causes that dilemma? Let’s just get started with Chris.

Chris: Sure. I would say there are two things and I completely agree with tester, 100% is that there are a lot of applications that are starting to get built up around the existing infrastructure, which will ultimately usher in the next wave of Defi. People that have been on Web3 through DeFi in the past cycle. Let’s just call it three-plus years, so to speak. But then not only will it grow that pie but it will also help out the set of users that maybe just getting started to understand what Web3 and DeFi are. Besides, combining your real-world information set along with your on-chain data is ultimately going to be the next sort of killer APP which is going to really unleash DeFi to the next level. In my opinion, again, not just crossing the mainstream by expanding it out to everyone but also really tapping into these growing resources. And privacy is really one of those big elements. So I think what zCloak is working on is critical, and there is a lot of great stuff being put in place right now, however, I would say DeFi is kind of addicted to the mainstream and what I mean by that is those protocols are put into place for very specific reasons and I won’t speculate, I would say about 98% of all other lending protocols that have launched on Layer 1 or Layer 2 are just with different token economics and sort of nice label and spin and whatever it may be. I’m happy for them but that doesn’t push the ball forward and that’s not innovation and I stand by that.

So the problem with these protocols is not only it is a lazy way to go about trying to move innovation forward, but also those protocols were set up not to offer user-level customization. And what I mean by that is if you have a wallet that has a great history and maybe even they have tied in their real-world credit, which is exceptional through zCloak. We can’t see that score. But we can see that it has been attested above some sort of threshold, that’s a great candidate to be able to offer a highly capital efficient alone or maybe even an under-collateralized loan. Everyone gets under collateralized terms in the pool or no one gets under collateralized terms in the pool and that is one of the reasons why we built RociFi from scratch, which is to be able to offer user-level customization DeFi system. But with any new innovation and anything new, there was a steep learning curve and especially in a bear market, people were a lot more hesitant to make the switch to something new versus going with what they know. That is tried and true. So it is a longer proposition of education and soothing the masses, but ultimately we built the framework that I think will truly usher in the next wave of adoption. Because you can offer those customized terms. You can offer fixed rate loan terms rather than variable, meaning someone can take out a loan for 180 days or 360 days and not have to worry about getting liquidated and they can get a higher loan value ratio because their credit score is really great, or their on-chain behaviour and off-chain history that they’ve sort of attached through zCloak. So all these things in really interesting use cases are only possible right now in DeFi through what we’ve built at RociFi and now what we’re looking to partner and hopefully cultivate with zCloak as well. But I would say that is the biggest shortcoming and kind of an addiction problem that Defi has been facing, probably for the last two plus years, and we’re gradually trying to wean the users of DeFi off of that, while simultaneously educating the new users about why what we built is better and can better serve them.

Cassiel: Okay, understood. Basically, Chris just mentioned, he thinks maybe 98% of the existing protocols didn’t set it at the user level and there’s still a long way to go for web3 users to learn about DeFi’s new use cases. That’s very insightful. And how about tester, would you mind sharing with us your ideas on that?

w3tester: I think was a great summary from Chris on the current situation of DeFi. So what we are really seeing is that especially lately there are not that many innovations in the space. I mean people are working on new things but we still didn’t see many major breakthroughs or innovations. And definitely, we want to make the cake grow larger instead of playing with the current market, so I think the good part about current DeFi is that it enables everybody to use the infrastructure, but when it comes to some real-world or serious applications, somehow in some scenarios you have to combine some sort of, such like the credit information or real-world information in this application. This is what we normally see in the real world and financial applications, but that’s also what is lacking in the DeFi world. So it’s great to treat everybody equally. I think it’s one way to do that.

For some applications, we do need some information about the user so that we can provide customized or conditional services to these people. But we haven’t seen much of that yet. I think it’s really important to supply this missing piece which is the information about every single persons and use that in the DeFi application. But at the same time, we don’t want to disclose a person’s name, their address on the blockchain. We have to think about privacy. So basically, our idea is also down to how could we provide the identity information or qualifications or certain attributes about the person in the blockchain without violating their privacy, without leaving personally identifiable information. So these are the topics we’ve been thinking and we have been working on. I think combining the concept of credit score from RociFi will definitely enhance our capability to do this. So people from one chain maybe have accumulated quite a lot of trading history when they land in another chain, maybe a separate, different chain, where their history is almost zero. If they want to use it in the infrastructure there, why not let this person bridge their existing trading history or in the form of credit score? Then they can immediately convince the protocols there to get some discount for trading fees, for example, or get a better rate for borrowing. I think that will greatly encourage people to use more DeFi products all over the ecosystem.

Cassiel: Okay, thanks for your opinions and from what tester just mentioned, for one thing, there are not many breakthrough innovations in current DeFi projects right now and for another thing is that the DeFi market maybe is still limited due to the Web3 trust issues. Wonderful ideas. Hope all of this can help our community to have a better understanding of current DeFi projects. Then let’s move on to the second part, considering that there are maybe some audiences who are not that familiar with RociFi, so I’ve got a few questions for Chris that the community might care about. Speaking of the on-chain credit system, could you please illustrate the reasons that projects need their original native credit scores?

Chris: Yes, it’s very simple, tons of information is out there and has not been used. If a user has been interacting with DeFi, Web3 and voting in governance and essentially being a good ambassador on-chain, they should be rewarded for that. And credit scores have the ability to be able to do that. The use cases are really limitless but true credit under collateralized is really important. I know it doesn’t mean that much in the current form of DeFi but for users looking to enrich their lives, maybe bridging their paycheck from one month to the next, looking to take out a loan with better terms on-chain versus having to sit through a bank in a developed country or maybe in some underbanked regions, they don’t even have access to credit because the local financial system is just complete shit. So there are tons of benefits of really doing credit scores in a fair way, which is on-chain only. But then also being able to marry that with that user, owning that data sovereignty and being able to connect some off-chain pieces of information that can help remove some sybil problems through technology like what zCloak is doing.

And then that can be taken out towards other elements which I mentioned before, where you don’t have to worry about sybil resistant governance voting anymore. Whenever you’re looking to do airdrops for new chains and whatever it may be, you don’t have to worry about bot farms or anything like that. And if you’re looking to understand who you should be rewarding within your liquidity mining program or boosting rewards for, you’ll have a better understanding that this person or this address is actually a good steward of not just your ecosystem, whatever that may be, but the Web3 ecosystem as a whole. So ultimately it is meant to be a carrot, an incentive for users to start moving this in a really more positive direction from DeFi that has become quite stagnant.

Let’s just face it since probably DeFi summer of 2020, that is where credit scores were derived from and we wanted to make it 100% native. So we’re only looking at a user’s on-chain history. We weren’t taking anything into consideration of off-chain data, where now being able to do that in a privacy-preserving way, is the next evolution which tester and I have really been talking about well on this AMA.

Cassiel: Yes, understood and that’s very clear. So in Chris’s opinion, some users may not get satisfied with local financial credit in the real world due to the absence of an offline reputation system, this makes the original native credit scores more fair to everyone. So based on the native credit score system that RociFi builds, what advantages does it provide in your lending business model, and does it make no liquidation and fixed APR loans possible? Besides that, what are the benefits of that kind of law model in DeFi? It would be appreciated if you could help us clarify the concept of no liquidation loans and fixed APR loans for us.

Chris: Sure, no problem. So your first question is what are the benefits of credit scoring? And I think I’ve talked about it well on the call so far to where it allows you to offer customized lending terms based upon a user’s history which no other protocol in DeFi right now can do, and it’s really important anyone can come in and set whatever terms they want based upon their credit history and I think that’s really powerful and it’s only going to grow in that power over time. And we’re also looking for ways to expand it. We want to be able to offer it to other platforms around DeFi in general so that they can also offer better loan terms to their users too. We don’t want it to be a closed system. We want it to be a common good and that is something that we’ve been working on within this year and look to really push through even further within 2024 with obviously the partnering with zCloak being one of those elements there.

Your second question is how does the scoring enable non-liquidation loans that are also fixed APR loans as well because how it does is by understanding the history or the risk of a wallet address. You will feel more comfortable in being able to offer loan terms that are fixed or on a fixed duration. So again, maybe someone wants to take out a sixty-day loan or a ninety-day loan and doesn’t just want it to be a perk style. That is a variable rate that in good times, it’ll be fine. But in bad times, you can end up paying a lot of money for that particular loan. So having the credit scoring but then also having the protocol that is built to do that again innovation is very important as well. So that is the fixed rate.

And also non-liquidation loans are two things that are really limited within DeFi right now. I think it’s really important because maybe a user doesn’t have all the time that they want to constantly look and see what’s going on in the market to update their collateral. Like that’s not efficient. The same exact way of putting up 130 dollars to take out a 100 dollars loan. But if someone has a history of borrowing that they’ve guarded and respected, then that is essentially offered as collateral in addition to what they actually offer as collateral, so that there is no early liquidation on it.

You simply just set a time period in which your loan matures sixty days in the future or whatever it may be. And then you just repay your loan, which is so much easier to keep track of versus having to look at what the day-to-day gyrations are in price on the market. And then the same exact way with fixed APR, you don’t want to pay to sign up for a loan that is 1% one day and then the next day it’s 30%, because some crazy thing happened in the market that’s not efficient for the end user. It’s high friction and that ultimately slows us down again from creating a killer experience right now within Web3, but also bringing in more of the masses, which can really take Defi to the next level, so those two key elements are born out of the credit scoring system, but also the innovation of us building our own protocol from scratch.

Cassiel: Okay, thanks for answering Chris, that really makes sense and we really look forward to seeing more collaborations of RociFi with other DeFi projects and making DeFi available for more users so that we can definitely have better liquidity and capital efficiency in the current crypto system. Besides, as you have mentioned a lot of times, zCloak Network is actually focused on the Web3 identity solution and part of the projects are also connected with on-chain credit and reputation stuff. So what do you think the partnership between the zCloak and RociFi can do for the community?

Chris: I think it’s the first step in a really fruitful relationship, if I’m being honest, we’re just starting that. That educational format in showing this is essentially a proof of concept to say, hey user, if you have some off-chain information that you think would be valuable that you would like to attest in a privacy-preserving way, and you also have some on-chain history as well that you think is valuable or even you think that you want to build up and guard over time by combining those two things, you are now taking the first step into the future essentially like you are in the future of finance. And again, it’s not about where we are now, it’s about where you see this five years from now, ten years from now. I like to think about that.

What zCloak and RociFi are building right now is truly the future. And by users being able to take this first step by attesting some off-chain information via zCloak and then combining that as well with their RociFi credit score, will be really powerful. So not only do you have access to RociFi if you have any borrowing or lending needs if you want to, um, get some yield on any existing assets, but also, you’re starting that initial process of cultivating this new sovereign.

Data identity source and credit score, which is going to be incredibly valuable to you and potentially your family as well in the next five years, ten years and most certainly in the future as well. The trend is very clear. Everything is moving on-chain and those that move fast, but also view it from a respectful standpoint, making sure that they respect the history of what they’re doing on-chain. They are going to be the biggest beneficiaries moving forward.

Cassiel: Understood. In short, I believe time will tell us the true value of our cooperation and collaboration. So lastly, would you mind sharing the 2023 roadmap of RociFi with the community, considering that we are actually already halfway through this year and did RociFi launch any tokens? And what kind of deployment has been achieved?

Chris: Yeah, this year is flying by as I mentioned, one of our big initiatives this year was to start expanding out and providing credit scoring to other projects. We’ve been fortunate enough to be able to have six projects that we’ve integrated our scoring with thus far and then we’ve got a whole bunch of others as well, which will be doing that for the remainder of the year. Another big thing on our roadmap is the token launch. We have not launched the token yet. It is tentatively slated for the end of this month. The market conditions are starting to stabilize, which is very important for us to make sure that we’re creating as stable an environment for our potential new stakeholders within the protocol as possible. You can’t predict anything known as a crystal ball, and you can’t round off all the sharp edges but we want to try to be as fair as possible. But the token launch for RociFi is very close in the near future so stay tuned because over these coming weeks, we’ll definitely be having more and more announcements of partnerships.

One of those announcements will be a timeline for BNB deployment, BNB is a huge chain which I’m sure everyone on the call realizes but also they’ve got a lot of retail users, what we built is essentially for the common person. We didn’t look to target institutions or anything else or I call them privileged elites. This was built for anyone whether it’s an institution, an individual or what else. We built the credit scoring but also the platform to be able to take care of those individuals and there’s a big bunch of that within BNB, so we’re excited to deploy the next version of our existing version of the protocol to BNB sometime within this year, likely to be Q4, but that’s a really big announcement. We’re also working on something over there.

With credit score integration, that will sort of hold off on announcing for the time being, but it’s gonna be big news whenever we can finally push that over the finish line.

Cassiel: Really looking forward to the RociFi token and thanks so much for your info and detailed illustration of ro RociFi. I believe the community must have better knowledge about your project. Then I think let’s get into zCloak time. I also have a few questions for tester. Speaking of the on-chain credit system, zCloak should be the pioneer of it. As far as I learned, zCloak is targeting to build a web of trust for the Web3 world, to help entities accumulate their reputation, and this seems to coincide with what RociFi is doing, however, RociFi may just focus on the DeFi usage, so from zCloak’s side, can we combine the RociFi’s score system with our credential issuing progress together? So that the users may apply the credentials in other application scenarios apart from DeFi, could you please share some ideas on this?

w3tester: I think we were excited actually to have this RociFi credit score in our system, because if you look at the identity ecosystem, what RociFi serve is something that we call attester. That’s their role in the identity system. So basically, they are the ones that will attest to people’s credit scores to their credibility. And based on these people’s on-chain activities and what zCloak does is help RociFi to make this attestation into something that we call verifiable credentials. So these credentials will contain the credit score of these people and these credentials will be signed by the official private key of RociFi so that people can actually take this credit score with them. One concept we think is really important in Web3 is the self-sovereignty of user data and this trading history and trading credit score is definitely one of the very important parts of it. So we want to keep this, we want to help people to get this data in their own hands and we want to help them to use this information in whichever scenarios they want to use.

We really want to start integrating this credit score capability with our infrastructure and get users to have these credentials in their wallets. By the way, we have launched A mobile version of Wallet, which is a PWA application. People can just open the browser and use the link to install it on their phone without worrying about the regulations from Google or Apple (app store). So it’s a really convenient way to have an identity wallet in their mobile phone and one of the first credentials people can get is probably a RociFi credit score credential. They can use that for applications in other chains for lending, or borrowing for other applications. They can prove to their DAO members that they have a rich trading experience or they can use it even in off-chain scenarios. So I think we can use this credit score in many use cases and applications. And we’re just gonna talk with RociFi to start with the issuing of this credit score credential to our community members. It’s also great to see so many people attending our Twitter space today. It would be great if you can join us in this interesting experiment as a community. I think the early birds will definitely enjoy it.

Cassiel: Thanks for all the information that tester just mentioned, which really gives us some usage examples to understand the cooperation between zCloak and RofiFi, however, when it comes to the credit and reputation stuff, another word may make just come along with it, which is privacy. So could tester enlighten us a lot about how zCloak balances the user data privacy and the credit system since the evaluation process must actually need certain user data?

w3tester: As we’re discussing, it’s great for people to use their data for all sorts of applications. But privacy is one of the major concerns people have nowadays when they want to use their data in a Web3 scenario. So I think one of the major issues that many people will have is they don’t want other people to know exactly what is their wallet address. Because if this wallet address belongs to someone, you basically know the entire trading history of this person. And some people really don’t want other people to peek into their history, know exactly at which day, at which moment, what they were doing, how much they have been spending, and which application they are interacting with. For many people, they’d rather keep this information to themselves. This is really very private information, so with the help of RociFi, what we can get from the people is their trading history in the form of credit scores. So we don’t have to know exactly at which moment with which application people are interacting, but we can have something like if you’ve been trading a lot, and you have a good credit score. And so this will already help to hide part of the privacy of people. And on the other hand, we want to use this information with somebody. Let’s say a verifier, what is also possible is to hide the information that you do not want to show them. You can hide your original on-chain address and without disclosing who you are.

You can also use your credit score in a way that is partially hidden. For example, you have a credit score of 300 for example, and when you go to a new chain, the application asks for someone to join their white list for their testnet, for example, with a credit score over 200. So in this scenario, you do not have to disclose exactly what your credit score is, but you can use the tools that we’re providing something that we call zero-knowledge proof to perform a ZKP computation locally to prove that you meet the criteria set by this project, you can prove that your credit score is over a certain threshold so that you can use their service. You can be their member without knowing exactly how much your credit score really is.

So I think it’s with these measures that we can help people to protect their privacy without disclosing their personal information, but still, they can benefit from their trading history and the credit score they have received.

Cassiel: Okay, that’s very clear to me, so frankly speaking, zCloak mainly uses ZKP tech to protect users’ data privacy. and lastly, can you share with the community the 2023 roadmap for zCloak? What are you building recently? What kind of new services may be launched later?

w3tester: We’ve been quite busy building actually in 2023, so the applications that people are seeing right now is that zCloak has built a complete wallet for people to hold their identity and their credentials in their cell phone. And this wallet comes for mobile phones and also for browser extensions. So people can choose which platform they want to use their credentials. We also have built something that we call a credential platform where the attesters can easily issue credentials to the users and everybody can manage their existing credentials there with ease. So the latest progress from zCloak is a new product we have launched in this space, something that we call zk-SBT, so the verifiable credential that we used to have for the users is something that is off-chain because we want to preserve the privacy of people. So we help people store this credential data in their wallet on their own device, without publishing it on the blockchain to everyone. But when they want to use this information and interact with on-chain applications, what we could provide is to help people to perform all sorts of zk computations over their credential data.

And the zk proof that is generated during this zk computation can be used to mint zk-SBT, which is basically a non-transferable NFT that is attached to someone’s address. This SBT is visible in a traditional NFT platform like Opensea. And most importantly that metadata can be used to interact with any project at the smart contract level. So that’s what we have already built so far. The next step this year is that we want to push this zk-SBT infrastructure to multi-chains. Currently, we have deployed a smart contract on OP testnet and Coinbase’s base testnet just for experimental purposes. Next step we’re gonna deploy the production-level smart contract on Ethereum and all these blockchains to help people to use this zk-SBT in these industries and that definitely includes the case if people get a credit score or certificate from RociFi, so that we will be able to help them to generate SBT using this credential and help them to port this in different chains. so that they can use that natively with a smart contract on those chains. So yeah, these are the things that we could do together with RociFi.

Apart from that, zCloak is also building something that we call Valid ID platform. The concept of Valid ID is that we want to anchor the real-world identity of organizations. So it’s for entities and organizations to have their identity linked to Web3 information, like wallet addresses so that when these organizations are issuing credentials, people will know who has issued this credential. And take the case of RociFi as an example, RociFi wants to issue credentials to their users, and we’d like them to sign these credentials with a private key and there’s a public key or there’s an address that is related to this private key. And we can help RociFi to publish this public key on a public website, something that we call a Valid ID at this moment so that people will be able to know really that this address or this public key belongs to RociFi. So this signature from them is valid. So this platform will build a test version and later this year we’re gonna push for adoption for this validity platform to have more projects to onboard. Besides, It’s not only for issuing credentials. If you think about it. You can use your identity for the signing of contracts, statements and other things.

Another interesting use case is that we’ve been seeing a lot of phishing attacks in the Web3 space lately. So when hackers steal your Twitter account or discord account, they will be able to publish phishing links and it will lead your community members to suffer losses financially but if we adopt something that we call Valid Sign in the Valid ID platform, you can basically sign all the announcement that is related to money or token using this valid Sign function. When people see the announcement, they will also be able to see a signature that is attached to this statement, and then they can verify it independently to confirm whether this statement actually comes from the project. In this way, we can reduce a lot of the scams and attacks in the crypto world. So these are things we are building this year and a lot of things to be done. And we do hope that we would collaborate with RociFi. The first step, we want to issue this credit score credential to our community members and we do welcome everybody in this space to join us in this interesting use case and to experiment with us together. Thank you.

Cassiel: Okay, thanks for the information from tester, and that really sounds great. So let’s look forward to the upcoming products and services in the scoring system. Lastly, for tester and Chris, is there anything you want to add apart from all the questions that I mentioned?

w3tester: Yeah, I think we covered quite a lot of information tonight, maybe the community need some time to digest this. And we do look forward to talking to Chris. I think maybe next week so that we can make some concrete moves on our collaboration.

Chris: Yeah, I agree with tester. I think we’ve covered a lot of ground. So we’ll give the audience a break for today but definitely stay tuned. Like we said we’re just getting started. We’ve got plans for exactly how we can work together and get this credit credential valid. This pilot sort of kicked off. So we look forward to being able to share the concrete next steps with the community and then start the process. And I really appreciate Cassiel having us on to be able to speak and cover a variety of different topics. Thank you.

Cassiel: Well, thanks a lot and I guess we will just stop here. For the community. If you need more information about zCloak and RociFi, please kindly follow the Twitter account to find more info. And lastly, thank you all for attending this panel, and many thanks to our community member’s patient listening. We’ll just see you next time. Stay tuned for our channel.