Open Banking is a transformative approach in the financial sector that allows third-party developers to access financial data through bank APIs. This innovation fosters a more competitive and inclusive financial ecosystem, enabling personalized banking services and enhanced customer experiences.
- Europe & UK: Leaders in Open Banking, driven by regulatory frameworks like PSD2.
- Australia: Supported by the Consumer Data Right, promoting data sharing and competition.
- Brazil: Advancing in financial innovation and transparency through Open Banking regulations.
The US is exploring Open Banking, with the Consumer Financial Protection Bureau (CFPB) playing a key role in assessing and potentially guiding future regulations. While formal legislation is not yet in place, there is a growing focus on establishing a secure and innovative financial data-sharing environment.
This project combines Open Banking with blockchain technology, enabling users to provide verifiable financial proofs without revealing sensitive information. Through an API, users can link their bank data to a blockchain-based zk-proof system, which then issues a Soulbound Token (SBT) as evidence of their financial status, like proof of reserve, proof of regular payment & fidelity, or creditworthiness.
- Problem Statement
- Solution
- Features
- Web2 Use Cases
- Web3 Use Cases
- Advantages
- Product
- Getting Started
Provehance addresses the critical challenge of proving financial credibility without compromising privacy in both traditional finance (Web2) and blockchain (Web3) contexts. Traditionally, verifying financial health requires sharing sensitive data, risking privacy breaches and fraud. In the Web3 space, the need for anonymity clashes with demands for financial transparency.
Provehance leverages Open Banking and blockchain technology, allowing users to generate verifiable, privacy-preserving proofs of financial status, such as reserves, transactions, or creditworthiness. This innovation offers a secure, transparent solution that maintains user privacy while providing reliable financial verification, bridging the gap between privacy concerns and the necessity for financial transparency in digital and decentralized environments.
Provehance is designed to offer a comprehensive suite of proof types, each tailored to specific financial transparency and privacy requirements. Here are the distinct types of proofs that serve as the core features of the project:
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Proof of Reserve: Users can verify their possession of specified funds in their account, maintaining privacy while affirming their financial solidity.
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Proof of Regular Payment & Fidelity: This feature validates the consistency of financial transactions, such as periodic payments or subscriptions, showcasing reliability without exposing detailed transaction data.
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Creditworthiness Proof: A privacy-first approach to illustrating a user's credit health, drawing on their banking history but keeping sensitive information confidential.
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Transaction Authenticity Proof: Users can prove the genuineness of specific transactions, enabling them to confirm past payments or transfers without disclosing their entire financial history.
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Income Verification Proof: This allows individuals to substantiate their income for applications or agreements, sidestepping the need to expose extensive financial details or personal data.
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Asset Backing Proof: Facilitates the tokenization of real-world assets, offering credible proof that the user owns assets corresponding to digital tokens, securely linking physical and digital assets.
These features collectively enable users to demonstrate their financial standing through secure, transparent, and privacy-preserving means, harnessing the power of blockchain technology for reliable, tamper-proof verification.
- Rental Applications: Prove sufficient income to landlords without revealing exact account balances, sharing only necessary financial information.
- Auto Loan Approval: Demonstrate meeting minimum savings criteria and creditworthiness for auto financing without disclosing total savings or credit history, ensuring privacy while meeting eligibility requirements.
- Scholarship Eligibility: Demonstrate financial need or savings threshold confidentially, sharing only required financial information for scholarship applications.
- Membership Subscriptions: Verify customer loyalty for high-level memberships, providing the necessary financial details without divulging full information, in order to protect privacy.
- Insurance Premiums: Confirm ability to cover high-value premiums with proof of stable reserves, sharing only relevant financial information for coverage.
- High-Value Purchases: Provide proof of sufficient funds for luxury items without exposing overall wealth, sharing minimum financial details for purchases.
- Business Partnerships: Establish financial credibility with partners by showing proof of capital, sharing only required financial information.
- Financial Audits: Simplify compliance by providing necessary financial proofs during audits, protecting sensitive data while ensuring regulatory requirements are met.
- Credit Limit Increases: Secure higher credit limits by proving financial health without disclosing sensitive financial details.
- Rental History Verification: Offer zk-proof of timely rent payments for future leasing agreements.
- Secured Credit Card Applications: Demonstrate the ability to maintain minimum balance requirements.
- Peer-to-Peer Lending: Provide assurance of repayment capacity and financial responsibility.
- Subscription Services Eligibility: Confirm ongoing payment capability for premium services, via a proof of regular payment fidelity, ensuring ongoing payment capability for premium services without revealing sensitive financial information.
- Financial Counseling: Validate financial improvement milestones in counseling programs, without revealing sensitive financial information.
- DeFi Reserve Proof: Prove real-world account reserves for engaging in decentralized finance without revealing exact balances.
- Tokenized Asset Backing: Provide transparent proof of real-world assets backing tokenized offerings.
- Loyalty Program Tokens: Earn tokens based on proof of regular payments, enhancing customer loyalty.
- Collateral reduction: Adjust DeFi loan terms based on real-world creditworthiness assessments.
- Proof of Philanthropy: Verify regular charitable donations, issuing SBTs to reflect ongoing philanthropic commitments.
- DAO Membership Eligibility: Demonstrate financial responsibility or commitment to an organization's goals in order to join its DAO.
- Proof of Financial Health for Airdrops: Qualify for airdrops that are distributed to users who meet specific financial criteria, while maintaining the security and integrity of the distribution process.
- Tokenized Credit Histories: Create a secure, private record of credit history for use in blockchain applications that require proof of creditworthiness.
- Smart Contract Insurance: Automate insurance policies based on verified financial behavior.
- Web3 Credit Scoring Models: Contribute to decentralized credit models with encrypted, verified Web2 financial data.
- Investment Clubs: Join exclusive blockchain-based investment groups by proving financial status through zk-proofs.
- Marketplace Trust: Enhance user trust in blockchain marketplaces by verifying users' financial credibility.
- Financial NFTs: Mint NFTs representing creditworthiness or financial achievements without compromising privacy.
These scenarios showcase the project's capability to facilitate a wide range of financial proofs, ensuring privacy and security while fostering trust and efficiency in both traditional and blockchain-centric environments.
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Enhanced Privacy & Security: Provehance safeguards users' financial data with a blockchain-based system that provides verifiable, non-disclosive financial proofs, ensuring utmost confidentiality and security.
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Trust & Transparency: Utilizing zero-knowledge proofs and Soulbound Tokens, the platform establishes undeniable trust and transparency, presenting financial information in a tamper-proof and transparent manner.
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User Empowerment: Empowers users with the autonomy to manage their financial data, enabling them to leverage their financial history securely without compromising privacy.
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Innovative Financial Interaction: Bridges traditional financial systems and blockchain technology, offering novel ways for users to substantiate their financial standing in both Web2 and Web3 environments.
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Versatile Applications: The diverse range of financial proofs caters to various industries, enhancing its utility across real estate, finance, DeFi, and beyond, illustrating the platform's adaptability and widespread applicability.
First, run the development server:
npm run dev
# or
yarn dev
# or
pnpm dev
# or
bun devOpen http://localhost:3000 with your browser to see the result.
You can start editing the page by modifying app/page.tsx. The page auto-updates as you edit the file.
This project uses next/font to automatically optimize and load Inter, a custom Google Font.
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- Next.js Documentation - learn about Next.js features and API.
- Learn Next.js - an interactive Next.js tutorial.
You can check out the Next.js GitHub repository - your feedback and contributions are welcome!
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Check out our Next.js deployment documentation for more details.