reinventing credit scoring...intelligence, algorithm-driven credit scoring, big data analytics,...

www.crediblenetwork.io

Reinventing Credit Scoring

A groundbreaking blockchain networkfor Business Credit Data

Version 1.2.0

IMPORTANT NOTICEPLEASE READ THIS SECTION CAREFULLY. NONE OF THE INFORMATION IN THIS white paper HAS BEEN REVIEWED OR APPROVED BY ANY REGULATORY AUTHORITY AND THE INFORMATION IN THIS white paper IS SUBJECT TO MATERIAL UPDATING, REVISION, CORRECTION, COMPLETION AND AMENDMENT FROM TIME TO TIME. THIS white paper MAY NOT BE TRANSMITTED TO ANY COUNTRY WHERE DISTRIBUTION OR DISSEMINATION OF SUCH INFORMATION MAY BE PROHIBITED. IF YOU ARE IN DOUBT AS TO THE ACTION YOU SHOULD TAKE, PLEASE CONSULT YOUR FINANCIAL, LEGAL, TAX, TECHNICAL OR OTHER PROFESSIONAL ADVISORS.NO PART OF THIS white paper IS TO BE REPRODUCED, DISTRIBUTED OR DISSEMINATED WITHOUT INCLUDING THIS SECTION TITLED "IMPORTANT NOTICE".

General informationThis white paper is issued by SmartPesa Pte. Ltd. (Registration No. 201812308N), a private company limited by shares incorporated in Singapore, ("SPPL").

This white paper constitutes a description of the token sale ("Token Sale") for the sale of the Credible Network tokens ("Tokens") and the functionality of the Tokens. This white paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. This white paper also does not constitute advice to purchase any of the Tokens nor should it be relied upon in connection with any decision to purchase the Tokens.

This white paper is prepared based on the current views and plans of SmartPesa group of companies ("SmartPesa"). SPPL reserves the sole and absolute discretion to revise, alter, add or delete any matter described in this white paper from time to time by posting the updated white paper on www.smartpesa.io. Such updated white paper shall become effectively immediately from the time of posting.

Token SaleThe purpose of the Token Sale is to raise funds so that SmartPesa may develop a new blockchain solution known as "Credible Network" ("Credible"), launch operations into promising countries, scale existing operations and grow the team in technology and business development.

Unless otherwise agreed by SPPL in writing, the sale of all Tokens by SPPL during the Token Sale shall be governed exclusively by the Token Sale Terms and Conditions at www.smartpesa.io. No person is bound to purchase any of the Tokens, and no purchase or payment would be accepted, on the basis of this whitepaper. In the event of any conflict or inconsistency between the Token Sale Terms and Conditions and this whitepaper or any other document, the Token Sale Terms and Conditions shall prevail to the extent of the conflict or inconsistency unless otherwise specified in writing by SPPL.

As detailed in the Token Sale Terms and Conditions, the Tokens carry no rights other than (i) a limited right to hold and transfer the Tokens, and (ii) a limited right to use and interact with Credible if, and to the extent that, Credible is successfully developed and deployed, in accordance with such terms and conditions prescribed by SPPL. The Tokens do not entitle their holders to any voting rights or dividends, and are not intended to constitute securities in any jurisdiction.

RisksParticipation in the Token Sale and purchase of the Tokens carry with it significant risks. If any such risk materialises, it could have a severe negative impact on any of the Token Sale, the Tokens, Credible and SmartPesa. Accordingly, please carefully review and assess the terms applicable to the Tokens and the Token Sale, as well as the risks involved (including those listed in the Token Sale Terms and Conditions) before deciding whether or not to participate in the Token Sale.

DisclaimerThe contents of this white paper is of a descriptive nature for information only, and is not binding. Such information has been compiled by SPPL from sources believed to be reliable. Some of this information may be forward looking in nature and based on certain assumptions. All statements other than statements of historical facts included in this white paper, including, without limitation, statements regarding business strategy and plans, estimates of returns or performance, and objectives for future operations, are forward looking statements. In addition, forward looking statements can generally be identified by the use of forward looking terminology such as "may", "will", "should", "expect", "anticipate", "estimate", "intend", or "believe", their respective negatives and other comparable terminology.

Nothing in this white paper is a representation, warranty or undertaking of the accuracy or fulfilment of any particular matter stated in the white paper at any given point in the future, and SPPL specifically disclaims any representation or warranty that it will execute any action or guarantee specific results regarding any matters described herein this white paper. The information presented in this white paper is for reference only and is not legally binding on SPPL, SmartPesa or any other parties.

LanguageThis white paper and related materials are issued in English only. Any translation is for reference only and in the event of any conflict or inconsistency between a translation and the English version of this white paper, the English version shall take precedence over the translated version.

©Credible Network 2018 1

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Table of Contents

1. Challenge and Opportunities 3

1.1 Introduction 3

1.2 The $5.2 Trillion Problem 3

1.3 Introducing Credible Network 4

2. Who is SmartPesa 6

2.1 Overview 6

2.2 Operating Countries 7

3. Credible Network Blockchain 8

3.1 Introduction 8

3.2 Credible Use Cases 9

3.3 Credible Ecosystem 10

3.4 Token Model 13

4. Technology 14

4.1 Why Blockchain? 14

4.2 Records 14

4.3 Data Structures 15

4.4 Blockchain Design 17

4.5 Interfaces 19

4.6 Protecting Data 20

4.7 TEAs Role in Tokens 20

5. Team & Advisors 21

6. Competitor Analysis 22

7. Token Sale 23

8. Use of Funds 24

9. Road Map 25

©Credible Network 2018

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Figure 1: Financing Gap by Region


01. Challenge and OpportunitiesSmall & Medium Enterprises (”SMEs”) are economic powerhouses. They generate 9 out of 10 new jobs while the Emerging Markets ("EM") drive over 80% of world GDP growth.

However, around 40% of all micro, small and medium-sized enterprises in EM countries lack access to credit, creating a funding gap of over $5.2 trillion per annum.

(Source: IFC – MSME Report 2017)

1.1 Introduction:EM SMEs have tremendous potential to drive sustainable communities by providing livelihoods, dialogue and micro-entrepreneurial opportunities if they can obtain the financing they need to grow sustainably. Today, there is a shortage of funding at reasonable interest rates due to the lack of digitally recorded credit related data including Know Your Customer (KYC) and cash flow information. Credible Network takes on this challenge.

Governments, financial institutions, companies, NGOs, trade partners and the public could all benefit immensely from a distributed system to capture, store and share credit related information especially if done at a grassroots level where the merchants themselves own their own data. Empowered merchants directly drive financial inclusion by providing more choice, more productive services and more employment opportunities in local communities.

1.2 The $5.2 trillion Problem:According to the International Finance Corporation (IFC), a member of the World Bank Group, the annual funding gap of $5.2 trillion is concentrated in emerging market SMEs especially in Asia which accounts for over half the total.

Financial Gap -Micro ($ Billions)Financial Gap -SME ($ Billions)

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

MSME Finance Gap as Percentage of GDP

$140 $636Europe and Central Asia

$57 $138

$46South Asia

$291$278

East Asia and Pacific$2,110$111

Latin America andthe Caribbean

Middle Eastand North Africa

$1,098$86

Sub-SaharanAfrica

$245

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The seven most common factors creating the funding gap are as follows:

1. Lack of Trustworthy Data: Absence of consolidated verifiable financial information on which to evaluate credit worthiness, especially KYC and cash flow data.

2. Lack of Collateral: World Bank Enterprise Surveys data shows that 79% of loans or lines of credit require collateral which is particularly difficult for emerging market SMEs.

3. High Transaction Costs: Small value loans are not profitable enough for Banks to justify risk assessment and due diligence on even relatively low risk investments: the smaller the loan, the higher the relative transaction cost.

4. Inefficient Loan Application Workflows: Loan applications within financial institutional workflows are usually completed on paper and thus subject to completion errors, capture errors and information duplication all adding to the time and cost for all parties.

5. Lack of Electronic Payment Acceptance: Electronic payments are strongly relevant transactional data, but to date, most emerging market SMEs have been unable to afford POS terminals to enable electronic payments due to cost constraints. POS terminals exceed 15 per 1,000 inhabitants in developed markets compared to 6 per 1,000 in emerging markets.

6. Data Islands: There is no unification of these disparate financial institution databases and no incentive for institutions to share data. Credit Bureaus with rich databases common in developed markets do not exist in EM countries to the same extent thereby increasing the cost of loan assessment to the underwriters.

7. Lack of a Market: Loans in EM countries as with many other markets are over-the-counter and negotiated one-on-one. This increases the costs for both lenders and borrowers as they struggle to find one another at low cost. In particular merchants are not aware of new alternative lending channels increasingly available to them.

1.3 Introducing Credible NetworkSmartPesa is developing Credible, a new Blockchain network to address the funding gap by providing a distributed infrastructure to share EM SMEs data. It is the only global distributed ledger to store identity, financial and transactional data on the Blockchain and to provide comprehensive credit scoring for lending activities.

The new Blockchain enables SmartPesa and the community to innovate with: Artificial Intelligence, algorithm-driven credit scoring, big data analytics, graphing, transaction and loan analytics and Banking APIs.

Credible directly seeks to address the seven problems identified:

1. Lack of Trustworthy Data: Credible is a method to capture, store and access data that is digitally signed and trusted by 3rd parties. SmartPesa is in a unique position to seed Credible through its existing payments and agency banking system that is powering over 8,000 merchants and tens of thousands of transactions daily.


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2. Lack of Collateral: Credible will provide facilities for merchants to pledge assets including Tokens in escrow against the performance of loans.

3. High Transaction Costs: Credible allows lenders to reduce due diligence rework.

4. Inefficient Loan Application Workflows: Credible provides readily available digital data.

5. Lack of Electronic Payment Acceptance: SmartPesa provides full POS terminals for fiat and crypto payment acceptance via credit/debit card, QR based wallets, mobile and contactless.

6. Data Islands: One single blockchain where financial institutions, businesses and users are invited to contribute, verify and consume data. Confidentiality is maintained through encryption of data which heretofore has prohibited sharing of databases.

7. Lack of a market: Credible includes credit scoring as well as providing potential lenders the tools to do online credit assessment. The same system is then used as a lending marketplace for borrowers and lenders to advertise, find, negotiate and complete loans. The system is open to traditional financiers as well as new systems such as peer-to-peer lending and alternative


Figure 2: Reinventing Credit Scoring

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Figure 3: SmartPesa – Products, Features and Capabilities


02. Who is SmartPesa?

2.1 OverviewAt SmartPesa, we are driven by Financial Inclusion. Our SmartPay and Agency Banking solution was developed for EM countries by the co-founders who were born in and grew up in Africa. Still considered a FinTech startup, we are in our 5th year of operations and complete tens of thousands of transactions daily across over 8,000 merchants in 5 countries.

We have completed formal certifications with international organizations such as EMV, Visa, Amex and Mastercard; National Financial switches such as Bancnet, NIBSS and MEPS; PCI compliances; and successfully undergone numerous API integrations with 3rd parties. We support all local and international cards, Apple Pay, Samsung Pay and Google Pay as well as leading wallet providers like Alipay and WeChat Pay.

Our platform has been entirely developed in-house by our experienced FinTech engineers who allow us to respond quickly to changes in a fragmenting payment infrastructure marketplace. Our current capabilities extend beyond card payments at our POS, both horizontally (new payment types such as fiat wallets and cryptocurrency) and vertically (new transaction types including cash withdrawals, bill payments, airtime loading, remittances and transfers).

We entered the blockchain space in 2017 and have added cryptocurrency payment acceptance through our SmartPesa CryptoPay product and the buying and selling of cryptocurrencies through SmartPesa CryptoATM.

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Our focus is to reduce the complexity of an increasingly fragmenting payments system into a seamless, consistent merchant experience. Merchants want a simple tool for accepting electronic payments across multiple different modes – cards, mobile, QR codes and crypto. We provide a unified Mobile App and POS terminal for easy payment acceptance, consolidated transaction history, and automatic reconciliation.

2.2 Operating CountriesOur current global footprint is 5 key emerging market countries namely Indonesia, Philippines, Malaysia, Nigeria and Colombia. We target highly populated middle income countries with relatively few financial touchpoints for the greatest positive impact.

These countries have a total population of over 680 million people. The estimated funding gap is over $620 billion with Philippines having the greatest need both in absolute terms and also as a percentage of GDP.

Figure 4: Presence and Funding Gap

Financial Gap as a percentage of GDP

Financial Gap

Colombia

$56 Billion19%

Malaysia

$21 Billion7%

Philippines

$222 Billion76%

Indonesia

$166 Billion19%

Nigeria

$158 Billion33%


8©Credible Network 2018

03. Credible Network Blockchain

3.1 IntroductionCredible is a new Blockchain solution that gives SMEs and business owners (“Merchants”) control over their precious credit data. Each Merchant creates a wallet for accessing Credible from within the same SmartPesa App they already use. This App allows them to interface with the system for managing their own data most notably deciding whether to allow the sharing of data in return for economic benefit.

Financial credit data comes in two forms – relatively static and dynamic:

• Static data has a longer half-life and consists mainly of KYC information such as name, address, business licenses, latitude/longitude and ownership information.

• Dynamic data has a shorter half-life and includes cash flow related data, especially revenue and payments to suppliers.

While other systems focus on static data such as KYC due to its longevity, it is insufficient to allow lenders to make credit decisions. Lenders also need dynamic data which is highly valuable but only for a limited time and thus needs regular updating over time. The last quarter’s sales for example is much more important than the same quarter a year before. Any credit system therefore needs to have incentives built-in for participants to continually add fresh new data. The Token flow model below covers how this is achieved with Credible.

Data sources include both SmartPesa sourced data, public data and 3rd party generated data. All data is dynamically analysed using AI/ML on a cross weighting basis to reach a credit score which is also made known to the Merchant. Tips are provided as to how a Merchant can improve their score through increased data creation, attestation and verification.

Credit data and/or credit reports can be purchased by 3rd parties (“Users”) with the permission of the Merchant granted through their mobile App on an opt-in/opt-out policy basis to preserve Merchant rights.

Users include banks, credit bureaus, lenders, advertisers, government, insurers and other financial institutions that provide services to Merchants. Access is provided by API and mobile/web interfaces for search, filtering and purchasing of data both vertically (comprehensive data set on a single Merchant), or horizontally (a subset of data across multiple Merchants). Records can be accessed one-by-one, as classes or en masse on an ad hoc or subscription basis with prices adjusted according to volume, quality and value.

Credible Tokens are a practical solution to the credit information problem in emerging markets providing methods for continual updating of information, purchasing of credit data and enabling lending.

Payments on the Credible network are in Tokens. Users pay Tokens to Merchants for their data while Merchants can use Tokens for data verification and services by 3rd parties. Merchants can even pledge Tokens as loan collateral, or sell to investors using our CryptoATM.

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The following transactions using Tokens will be supported:

• Data Purchase: Users such as lenders, credit bureaus, aggregators, trade partners, advertisers and loan originators can purchase data from Merchants

• Credit Reports: Users can also purchase credit reports from SmartPesa or other credit assessor with permission from the Merchant who shares in the proceeds.

• Data Creation Services: Merchants can pay their service providers (e.g. trade partners, lenders, microfinanciers) on a subscription or ad hoc basis for adding verified data to the blockchain in order to improve their own credit score and income stream.

• Verification Services: Merchants can pay 3rd parties (e.g. notaries, accountants, police or a bank) to verify that attested (self-declared) data such as a new address is accurate and reliable.

• Savings & Collateral: TEAs (discussed later in this document) can provide escrow services of Tokens as a form of savings or for use as loan collateral in return for a lower interest rate loan. Pledging is managed through a time-bound smart contract.

• CryptoATM: SmartPesa’s CryptoATM will preferentially support the sale and purchase of Tokens by Merchants‘ customers over cryptocurrencies already supported such as Bitcoin, Ethereum and Litecoin.

• CryptoPay: SmartPesa’s CryptoPay will preferentially support Tokens for payment acceptance using crypto for goods and services sold by Merchants to their customers.

• Settlement: Supply chains can settle in Tokens by mutual agreement• Investments & Trading: SmartPesa will seek listings on suitable crypto exchanges

SmartPesa will place Credible on across its deployed Android and iOS payment terminals for merchants to directly interact with blockchain. Independent developers can further create their own Apps, user interfaces and frontends by using the Credible SDKs and/or direct RPC APIs.

3.2 Credible Use Cases


Low-cost aggregation of Merchant credit-related data by digitizing existing data collection processes

Let Merchants own and control their own data

Ensure privacy and maximal control through encryption and Blockchain

Make it easy for 3rd parties to contribute data

Reward 3rd parties for verification of data

Enable controlled 3rd party access for credit bureaus, lenders, trade partners, etc.

Facilitate securitization of Tokens as merchant loan collateral

Token sale and purchase by Merchants

Incentivize all parties to improve the quantity and quality of related records

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3.3 Credible EcosystemCredible has a vibrant ecosystem with participants across the SME spectrum and financial industry. Every participant has their own wallet and all Merchants are automatically enrolled into Credible, and given a wallet. In the case of SmartPesa, the key pair for Merchants is created using our Hardware Security Module (HSM).

MerchantsEach piece of data added to the Blockchain platform is encrypted at the source with a unique key by the party that added the data (‘Creator’) and tagged to a Merchant’s wallet (‘Owner’). Part of the data creation mechanism is to provide access to the data generation key to the Merchant to preserve the underlying requirement of Credible that all data is owned and controlled by the Owner. Merchants are then able to tag generated data as accepted or refuted. It is this combination of data creation, attestation and verification that provides the underpinning to the Credible credit scoring algorithm.

Other Creators include companies that provide services to Merchants such as SmartPesa, KYC service providers, banks, government, and others. Any entity that has a database of the key merchant information is encouraged to contribute. Merchants may pay fees for data submission services which will be paid in Tokens.

Merchants are ultimately in control of their keys. They can extract their own private key into their own custody, transfer it to another service provider or altogether opt out of the Blockchain. Opting out of the Blockchain means destroying the Owner’s keys which will prohibit access to the encrypted data on the Blockchain by anyone (other than individual data point’s Creators) including by the Owner. This cannot be reversed.


Figure 5: Benefits to all Participants

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AttestorsMerchants are also encouraged to add additional data to their own wallet (‘Self Declaration’) in which case the Creator and the Owner are one and the same. This voluntary disclosure can be any type of data including static and dynamic data, such as utility bills, trade partners, lease agreements, insurance documents, and any attestations of tax clearance. Capturing of the document is through data entry on-screen and through image capture on the phone. This will all be performed in the same app already being used by merchants for payments and agency banking.

Any party that has access to a piece of data can attest that data is valid (positive attestation) or invalid (negative attestation). Part of the attestation process is proving knowledge of the key used to encrypt the data without revealing the contents of the key. An example of positive attestation is the verification by a Merchant that a financial report on a Merchant prepared by an accountant or tax officer is valid.

Data VerifiersSelf Declaration data is inherently less trustworthy than data created by a 3rd party Creator. To even the playing field, Credible allows for 3rd parties to check the declarations and digitally countersign the data as being valid. These 3rd parties (‘Verifiers’) provide a similar service for data as legal notaries do for documents. Any piece of data can have one or more Verifiers any party to be a Verifier. Protection against collusion between an Owner and a Verifier is achieved through the credit scoring algorithm whereby the trustworthiness of the Verifier is a weighting applied to the data. This is a dynamic self-referential AI/ML calculation that will result in effective penalisation of Verifiers who prove to be untrustworthy through their credit score and this too will affect the Owner’s score. Owners are thus incentivised to seek the highest trust rated Verifiers and we would encourage new businesses to provide these services at a local level and over time prove their trustworthiness through increasing credit scores.


Figure 6: How Credible Works

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3rd Party ContributorsCredible is open to 3rd parties to contribute data on their transactions with Merchants and create new wallets for their own merchants. Tools, code and the interfaces will be made completely open and published in Github (a free and open source distributed version control system).

• Lenders and Financial Institutions: Financial institutions including banks and insurers would be interested to locate suitable merchants for sale of their financial products. A key group among this are lenders, whether microfinance, banking or peer-to-peer lending institutions. Tokens would be used to obtain the information needed and also for purposes of loan collateral.

• Supply Chain Partners: Supply chain partners want to understand the business graph, inter-relationships and the credit worthiness for purposes of trade credit.

• Investors and Traders: Purchase and sale of Tokens through SmartPesa CryptoATM functionality by Merchant customers for investment and trading purposes.

• Customers: Purchase of goods and services at Merchants using Tokens through SmartPesa CryptoPay.

Trusted Escrow Agents (TEAs)Credible provides for Trusted Escrow Agents (TEAs) who facilitate real-time access to the Blockchain data on behalf of Owners. All applicant TEAs need to subscribe to the Credible governance framework in order to become a full member of the permissioned network and once approved, all TEAs have equal status within the Blockchain and each operates a full node. The purpose of each TEA is to operate as a service provider to facilitate access to the Blockchain on behalf of its Owners.

Control over data still resides with Owners who are free to move from one TEA to another without loss of any data. The TEA is effectively a custodian for the access to a merchant’s data and brokers requests for data consumption while handling Token payments within the network. TEAs provide searching, filtering, access services by exposing APIs, and accepting requests from web interfaces, SDKs and proprietary integrations.

SmartPesa will operate the first TEAs, and in the spirit of Blockchain, encourage other TEAs to join the network. As part of the governance framework over trust services for keys and access in order for a company to be a TEA, SmartPesa will use a hardware security module (HSM) for key generation and management purposes.


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Figure 7: Credible Network - Functions

3.4 Token ModelSmartPesa earns its revenue from the provision of payment and agency banking services. We have no conflict of interest whereby we would intend to restrict access to Credible as part of an ongoing competitor advantage.

Instead we seek to include as many participants and use cases for the token as possible, looking to increase both the size and quality of Credible over time, even whilst the total issue Token Supply will remain fixed forever following the Token Sale.



Figure 8: Token Usage Summary

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04. Technology

4.1 Why Blockchain?Credible Network is bigger than SmartPesa. Data sources are naturally decentralized and so too are the participants. Segmenting any database by geographical or industrial logic would defeat the goal of a single place for all credit data. Furthermore, by its very nature credit data is about trust which lends itself particularly to Blockchain:

Immutable: Information once stored on Credible is immutable. It is a ‘write-once’ database, in which the information can only be appended but can’t be altered. Thus, the participants of the ecosystem do not need to trust each other to do transactions.

Auditable: When data is added and updated on Credible, the claim keeps a trail of all events. Each participant can be assured of accuracy and transparency.

Secure: Blockchain provides heightened security to the merchants; mitigating any chance of data theft or fraud.

The Blockchain mechanism protects the database itself from tampering while the rest of the Credible system is designed to accurately capture, record, attest and verify with the goal of accurate and dynamic credit risk assessment.

4.2 RecordsThe underlying data component is a record. Each record includes a data payload as well as metadata about the record. The data payload is always encrypted while the metadata fields are public to enable searching, sorting and filtering.

Records tagged to a merchant’s wallet will be stored across the blockchain over time. An individual record may not have high value but the cumulative value of records built up over time is very valuable for the purposes of credit scoring. The rich data record structure includes relatively static information sourced during KYC such as business details, registration number, permits, addresses and related parameters, and complemented with a broad range of contributed data points. Data sources include (among others):

• KYC during merchant onboarding• Suppliers and trade partners• Commercial Banking, Insurance, Leasing• Legal Filings and Collections• Judgements and Bankruptcy• Commercial Finance Relationships• Financing and trade payment• Background Information

o Key Personnel o Operating Information


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4.3 Data StructureRecords comprise encrypted data payloads and metadata. The unencrypted metadata provides information about the nature of the data for decoding, tracking, filtering and sorting purposes. Records are divided into classes and within each class, a specific ID is tagged by the Creator and stored in the metadata. A business name for example, would be class KYC. ID name such that the record type tag is KYC.Name. This hierarchical class data structure allows users to seek groups of related data as a combination as well as simply record-by-record. Metadata also stores data history, linking back to prior data recorded previously on the Blockchain so that updates are immediately trackable and providing an audit trail on all data.

All data added into the Blockchain is encrypted at source with a unique cryptographic key (‘Nonce’) generated by the Creator which ensures privacy over the data within the public Blockchain. Since each data payload is encrypted using different Nonces, sharing any particular record does not enable a 3rd party to decode all merchant’s data.

Record Nonces are stored in a metadata field encrypted by the Creator using the Merchant’s public key, allowing merchants full access to all their own data stored on the Blockchain, no matter who the Creator may be. The plaintext Nonce is revealed to a data user for decoding a record.

Each claim attached to a wallet has a structured payload for uniform storage:

• Data payload (encrypted with a Nonce)• Metadata fields

o Merchant’s wallet (public key)o Record ID (unique)o Record Classo Record Typeo Encryption algorithm and key length (e.g. 256bit AES)o Date and timeo Block and record ID of a previously recorded related record (UPDATE)o Creator’s wallet (public key)o Nonce encrypted with Merchant’s key (for merchant to decode payload)o Nonce encrypted with Creator’s keyo Creator’s signature authenticating datao Verifier’s signature authenticating data (optional) – any number of verifierso Nonce in plaintext (optional) – if merchant chooses to make record public (Unlimited number of metadata fields)


4.4 Blockchain DesignCredible is a permissioned Blockchain network for sharing private data on a distributed network. The requirement is for data to replicate across multiple independent nodes in a controlled way. The data storage must be immutable. It must be encrypted, and it must be available to users to query and access the data.

Most Blockchains are designed purely for value transfer and are not usually well suited for data storage. They have limited transaction throughput, limited data capacity and lack interfaces for querying the ledger content. A few solutions adopt hashes (IPFS) and pointers (Multi-Chain) with data stored in flat files or isolated databases.

Credible requires larger quantity of data to be cryptographically secured while being replicated to distributed network participants.

Credible adopts the Blockchain in a novel way. It embodies design principles of a replicated database model for storing credit data in a high throughput data store. Credible adopts MongoDB as its storage layer in a noSQL database. This allows for flexible JSON data models for hierarchy and classification. Importantly, the database allows querying across large datasets.

Since Credible will operate in an environment without a central control, a consensus mechanism to coordinate data replication between nodes with low latency is required. We use Tendermint for the underlying consensus mechanism to ensure Byzantine Fault Tolerance (BFT) across the Credible network. By design, Tendermint runs validators on each node for the consensus of broadcast transactions. As this middleware focuses only on consensus, it can handle transaction rates of thousands of transactions per second.

In order for Tendermint to interact with the data store, we adopt the ABCI interface to interconnect between the consensus network and the database engine. ABCI is a messaging protocol coordinating the requests (business logic) received from the Credible network, and applying these to the database, for example add record, append record.

Credible must guarantee that records are immutable and non-fungible. To attach all submitted data to an owner, we adopt BigchainDB for its interfaces to the data layer and providing strict conditions on the ownership of the data. It enforces rules to ensure that data is cryptographically signed prior to inserting into the database. This also prevents malicious interference with one node and it not affecting the rest of the network.

As each merchant has a unique wallet (cryptographic key pair), an arbitrary JSON document can be attached to the merchant's public key and tagged with publicly visible metadata. Each JSON document is encrypted with the record Nonce and made available for public query. In order to recover (decrypted) the data, however, requires the Nonce itself.


Credible

Credible

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4.5 InterfacesCredible will make it easy for data owners and 3rd parties to interact with the Blockchain through Remote Procedure Call (RPC) interfaces, predefined methods and input parameters. SmartPesa has designed SDKs for many years and apply these best practices to its Credible API designs.

Clear function calls will be provided for consumption by Web (DApp) and Mobile SDKs and the RPC methods provide means for proof of existence, search, and retrieval of the owner encrypted data. The returned data allows the requestor to validate the existence and authenticity of the records.

Users can search by asset, search by meta-data, retrieve a history of asset transactions (addition, validation), and retrieve all claims attached to a single wallet. Methods will also be available inter alia for geospatial search of records (by GPS coordinates, GeoJSON) and validation of claims (with signing of both owner and requestor).

In order to support the range of credit record data, we shall define in the open community, JSON Schema to define the data structure. JSON properties should follow the schema.org specification, and enable an efficient way to convert a credit data records into JSON-LD format. This JSON Schema specification also allows Credible to specify a list of fields that describe a data and fields represented in the metadata.


Figure 9: Blockchain Transaction Flow


Requestor Data Owner

Figure 10: Blockchain and Interfaces

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4.6 Protecting DataSmartPesa engineers are very experienced with cryptography, symmetric and asymmetric encryption, CBC and ECB schemes, and PCI PTS key management protocols. An often highlighted truth in various Blockchain circles is that all data on a Blockchain is public. This white paper has described the mechanics of the data being contributed, secured and encrypted, and made available for sharing by TEAs.

The team is working on prototypes for Credible employing the mechanics of Shamir Secret Sharing, Blakley’s scheme, multi-party RSA cryptography building on Chinese remainder theorem, and facets of secure multiparty computation for secure Nonce sharing between participants.

Wallets use Ed25519 and SHA-256 for generation of unique wallet addresses.

4.7 TEAs Role in TokensAt the technical level, TEAs act as token gateways bridging the Credible network with the Ethereum network. This enables the movement of value between the two Blockchains. In the terminology of Ethereum, implementation is in the form of an oracle that connects the two networks. There is no need for any manual intervention since the oracle serves requests in both directions.



Experienced Team

05. Team & Advisors

Expert Advisors

Roy Lai CEO and Co-Founder,

InfoCorp and SentinelChain

Matteo Chiampo CGAP Consultant, SUSS

Fellow, Travelkhana

Ville Öhman Cryptocurrency Fund Manager,

Blockchain Technologies

Fabio Nehme Founder and CEO,

Nehme Group

Ali Hussein Kassim C-Level Executive, FinancialInclusion advocate, FinTech

Dr Rex Yeap Partner of Invention Capital,

Inventor of IP Blockchain

Barry Levett Co-Founder and CEO

Thorsten Neumann Co-Founder and CTO

Hoang Anh Vu

Crypto & PaymentSpecialist

Phuc Nguyen Crypto & Blockchain

Engineer

Trung Nguyen

Backend BlockchainEngineer

Shaik Ashiq

Android & iOS Engineer

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SmartPesa& Credible Civic Pundi X Viso Koinon

eBitPayment

Accept fiatpayments

Fiat agencybanking

Accept cryptopayments

Crypto ATMs

KYC

Ability to sellcredit data

Allow forcredit scoring

Credit lendingmarketplace

Figure 11: Competitor Analysis

06. Competitor Analysis

Capabilities


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Figure 12: Distribution of Tokens

Figure 13: Token Sale Details

07. Token Sale

The Credible Network token (the “Tokens”) will be an ERC20 token, also referred to as utility token, with the functionalities as described in this white paper issued by SmartPesa Pte. Ltd. (”SSPL”).

The funds raised during the Token Sale will be used to develop further the Blockchain solution, launch operations into promising countries, and grow the team in technology and business development. This is further detailed in next section.


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08. Use of Funds

The funds will be used for both technological development and scaling of operations:

The funds will be used for research and development and for launching in-the-field with Merchants. The soft cap has been determined as the minimum viable raise in order to complete minimum viable product (MVP) and complete a proof of concept. The hard cap has been determined based on a projected number of merchants that can be reliably on-boarded in the next two years.

The additional funds received above the soft cap will result in up to 40,000 new merchants being added to the platform. SmartPesa will invest and ramp up merchant acquisition in its current operating markets and will also look to expand geographically.

Credible will be launched first in Philippines where SmartPesa is seeking to quickly expand its presence. Philippines is selected for its very high funding gap, the success of our Agency Banking product and the very low current POS deployment per capita.


Figure 14: Distribution of Tokens

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09. Roadmap


Get in touch :

www.crediblenetwork.io

+65 3159 3276

[email protected]

26 Duxton Rd #02-00, Singapore, 089490

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