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Decentralized Credit Score
As mentioned in the previous section, lending and borrowing of NFT assets and its derivatives could lead to gamification, that could potentially prove fatal to the trust of Lenders in the market. To combat this in a meaningful way, the PawnSpace team will be researching ways to create a decentralized Reputation Scoring algorithm or mechanism that would help reduce sybil-attacks on the platform, and also encourage the repayment of loans. We believe such approaches will help develop trust and usage of PawnSpace in the long run, thus benefitting both borrowers and lenders in the market.
However, such a mechanism has not been implemented in PawnSpace V1, and will be incorporated in future updates or later versions of the protocol.