FAQs

What Is Hydra

What is Credit Hydra Building ?
Credit Hydra is a protocol to launch a decentralized Credit Bureau. It means that by using the protocol and the supporting infrastructure anyone or any organization or any country can launch a credit bureau that is completely decentralized within weeks.
Why launch a Credit Bureau ?
As per World bank more that 80% of world population do not have access to credit. This is due to lack of credible data to access their credit worthiness. A Credit bureau provides this information to the lending institutes so that they can make a decision on lending and give out loans to deserving population.
I am planning to launch a Credit bureau how do I get Started ?

To get started please reach out to us by clicking the Early Partner network link in the navigation bar. We will provide detail instructions once we have established a connection with you.

Why Decentralized ?

Building a centralized credit bureau is hard, expensive and time consuming, and is not secure. In USA it has taken more than 30 years to build out the current credit infrastructure and it is prone to frequent data hacks.

A decentralized credit bureau is secure due to is decentralized nature and is as effective if launched for 1 person as it is for the entire population. This allows launching credit tracking fast and cheap.

Why Decentralized ?
Building a centralized credit bureau is hard, expensive and time consuming, and is not sucure. In USA it has taken more than 30 years to build out the current credit infrastrructure and that infrastructure is prone to frequent data hacks.

A decentralized credit bureau is as effective if launched for 1 person as it is for the entire population. This allows launching credit tracking fast and cheap.

Also since the data is owned by the consumer and is encrypted, hacking single location to get access to hundreds and millions of records will no longer be possible,

Identity

What can I create a valid identity on Hydra ?
There are three ways to establish your unique soverign identity with Hydra (Read blog post here)

  1. Integrating with existing Blockchain Identity Solutions: We will support accredited credit identity providers on blochchain (uport, Civic). If you have established a valid ID with them you can import that identity to the wallet and get started.
  2.  National Id: As we roll Hydra out to each country we will integrate identification with the national id, so for you it would be a seamless and simple process.
  3. Biometrics: If you have a cellphone that provides face recognition and fingerprint reading, you can use any valid Government issued Id + Face + fingerprint to establish your unique identity.
How is my identity stored on Hydra ?
While you are validating your identity with Hydra you get an option to store it on your device or on the blockchain or both. Our recommendation is to do it on both locations. In this manner you can recover your verified identity in case of loose your device.

The identity on the blockchain is encrypted with your public key and can only be unlocked with your unique private key so you do not have to worry about any network hacks or data theft.

How can I share my Identity that I have stored on Hydra ?
The best way to share your identity with a third party is to give your Hydra Id to the third party and them to send us a request for your identification. At that point we can encrypt your identity with their key and send it to them safely. This ensures an end to end encryption of the data and eliminates possibility of third party accessing you data.

If you cannot do that you can always decrypt your data with your key and share it by providing an address for your documents to be sent (not recommended)

Data

How do I get started with my initial data import?
If you are a new territory where you have no historical credit data, any alternare data you can provide will be a great start. The alternate data can be your phone bills, your utility bills, your home payments or your rental payments. If you can also provide your salary slips and tax retutns it would add to your reputation.

For territories where there are preexisting credit tracking you can one time import your information from a credit bureau to establish yourself.

Where is my data stored ?
The data is stored at two places 1) on Youe device 2) On a distributed storage source (IPFS/Swarm node).

When you upload any data a hash of the summary data is created and stored on the blockchain (on a weekly basis). This hash is used to establish the validity of the data.

The actual data is encrypted with your key and then stored on your devide (usually on some kind of network drive like dropbox) as well as a storage node (IPFS or Swarm). There are a maximum of 5 copies stored on the network to provide backup in case of loss of data.

How is my data validated ?
Hydra uses a Federated identity system where a social network of reputed attestors are available to validated the data that is not available through a trusted source.

For, data that is available through a trusted source (without any consumer inputs), it is considered as valid and correct at the time of import and there is no attestation required.

How does my data get updated on an ongoing basis ?
Hydra STATS integrates with various banks and credit card companies using API. So as you post your transactions on these platforms they get automatically updated in the STATS.

In the long run once you start using Hydra Wallet for all your day to day needs the transactions done through wallet will also be automatically stored.

Can I upload my paper documents ?
Yes, you can. Hydra social network can be used to attest various documents and upload them to the Hydra STATS.