Building the Power of Trust on the Blockchain: Avarta Review 2022
(Photo : Avarta.io)

The idea for Avarta began in 2017, but as it has gained momentum and continued development, it has gained more and more attention.  A blockchain-based platform, Avarta's key value is trust.  It has an interconnected set of products that are built around trust-both in creating secure features for their clients such as a multi-chain wallet, as well as providing an opportunity for users to have proof of their trustworthiness.  By analysing data and patterns of their customers, they can generate a "trust score" that can be used for identity verification, financing risk assessment, and even to give validity to their metaverse avatar.  While different platforms are addressing some of these issues, none seem to be tackling them all, let alone using them to create a trust-driven synergy for their interconnected products.  Let's take a look at Avarta, its team, and its goal of bringing trust to the digital world.

Avarta Team and Guiding Principles

The original vision of the platform when it was conceived in 2017 was to develop a way to combine active biometrics (eg., facial scanning) and passive biometrics (eg., device-based fingerprinting), then provide a real-time analysis/verification scoring for a vendor.

As the project grew in size and scope, the team expanded its expertise from investments, biometrics, and software development; and added advisors ranging from Fintech, anti-money laundering, blockchain, and project incubation.  The project has gained significant attention from investors, including the backing and advisor support from Prince Abdul Qawi of Brunei.

The guiding principles of the team have been more than just identity authentication/verification.  Instead, they have built the core of their development around giving trustworthy individuals the ability to establish and use the trust they've built for an expanded range of services and favourable terms.  Likewise, they've used this principle to give institutions the ability to reduce risk on trustworthy individuals, which leads to optimized rates, collateral, and more.  The result of this data-drive "trust" principle is an economy that is more efficient, accurate, and balanced.

Avarta Review 2022:  Key Features

Multi-Chain Wallet

Clients can combine wallets from multiple chains into a single, non-custodial wallet service that can:

  • Swap digital assets with each other

  • Stake digital assets on DeFi protocols

  • Borrow and save digital assets at special rates unlocked by Avarta's Trust Score technology

  • Voluntarily opt into Avarta's exclusive biometric security features, and/or opt into building up their Trust Score. Both these features will streamline users' interactions with the world of DeFi and improve the catalogue of financial products that they are able to access

The wallet provides the highest level of security through a unique patented blend of biometric authentication and sophisticated machine-learning tools that capture the mobile device behavior without the need for passwords, pins, or security tokens. 

Trust Score

With a wallet that holds elements from multiple chains, customers can opt to use their data, history, and more to develop their own Avarta Trust Score, which analyses many elements of a person's identity and activity that would build or break their financial trustworthiness.  This trust score is a critical component of the trust ecosystem being developed by Avarta.

Results of the trust score go beyond fiat-based credit.  With a high trust score, users can enjoy benefits such as:

  • Better collateral and loan rates because they've been optimized to fit the customer's true risk level

  • Single point of whitelisting

  • Differentiated DeFi products (varies by risk profile)


Source:  Avarta.io

Digital Self: The "Avarta"

As society builds itself further toward a variety of metaverses, the properties of trust and verification will only grow.  Avarta offers the ability for users to create an avatar of themselves, called an "avarta", that uses their analysed information to develop a digital identity.  With this users can allow access of certain information to trusted parties and gain priority access to regulated platforms that require whitelisting.

Avarta Review 2022:  Competitor Overview

Competitors of Avarta include blockchain-based companies and more traditional credit score providers.  In addition to the big three credit houses, there are emerging platforms such as Celsius, Degen Score, Spectral Finance, ZenGo, and XDefi.  While each of these have their own core services, none seem to span across elements such as native staking/token, non-custodial, NFT support, a standalone app, biometric access, and a trust score.  


Source:  Avarta.io

What's Next? 

Given this, where can Avarta go wrong?  Because it is still an emerging platform, its main challenge will be one of legitimacy.  Unless it can convince the consumers of its analytics and trust scores that Avarta is fair, thorough, insightful, and a trusted confidant, Avarta will not be able to make the gains it needs to in order to take on the big credit houses.  So far the platform is on the right path, but it will need to continue to grow and build its reputation beyond that of current trust score providers.

Given that, traditional credit houses continue to steam on despite an increasing number of problems.  Key issues have been data breaches, like the 150+ million people whose data was stolen from Equifax in a comedy of errors, inaccuracies, and a growing frustration from consumers that they simply have no say in a credit house taking and using their data to develop a score that will significantly affect their lives.  

While Avarta has an uphill battle to compete with the incumbents, it may also have a large advantage by actually listening to its customers and building products that create trust for all parties of the ecosystem.

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