What is Accountable, exactly? We’re glad you asked! ⬇
Since the implosions of the titans of crypto lending in 2022, lenders and borrowers have been focused on one issue: counterparty risk. Up until now, there hasn’t been an effective way to solve this, and the result has been a disequilibrium that has stifled credit growth: lenders are understandably defensive with their capital, translating into high interest rates and collateral requirements, which constrains borrowers.
Enter Accountable.
Leveraging a host of recent cryptographic innovations such as zero-knowledge proofs, zkTLS and fully-homomorphic encryption (FHE), Accountable makes it possible for borrowers to comprehensively, yet privately, prove their financial health, giving lenders the information they need to confidently deploy capital into the ecosystem.
But how does this proving process work?
Using custom-built connectors that span over numerous blockchains, custodians, exchanges, traditional banks, and portfolio management services, Accountable is able to generate a comprehensive, yet private, picture of a user’s financial standing using zero-knowledge proofs. In essence, one can prove that they are creditworthy without revealing the granularities of their finances.
As Accountable was built with privacy in mind, the platform does not function as a traditional web application—instead, all computing is done within a user’s local environment. This means that the user has full control of their data—nobody, not even Accountable, has access to sensitive information. This is in contrast to current solutions, where users must upload sensitive information into the cloud and trust a centralized database. Core to blockchain ethos, Accountable is distributed and trustless.
But what does this actually mean for crypto credit?
Healthy credit markets are a pillar of a strong financial system, and crypto has been functioning largely without one since the implosions of 2022. Accountable strives to be the missing puzzle piece in the crypto credit ecosystem that enables unprecedented capital flows into credit markets, leading to the maturation of crypto as an asset class and as a robust financial system.
We’re on a mission to reinvigorate crypto credit, and we’re excited to have you along for the journey!
