Tearsheet explains the concept of decentralized credit scoring and how it is different from traditional credit scoring. The three major credit bureaus today all use traditional credit scoring that is based on debt repayment information reported by financial institutions to these bureaus; decentralized credit scoring uses a peer to peer network of trusted parties who can attest to the identity and creditworthiness of a potential borrower; many of these new decentralized systems are blockchain-based where no personal information is stored on the network. Source.
