The New Frontier of Web3 Credit Scores with Sishir Varghese of Spectral Finance

Join Alex Tapscott as he decodes the world of DeFi with special guest Sishir Varghese, CEO and Founder at Spectral. Listen in as they discuss Sishir’s journey into crypto, Spectral Finance’s founding, how the Spectral protocol works, its different customer use cases, reactions from traditional credit bureaus, the future of Spectral, and more!

Sishir has been an active supporter and investor in the cryptocurrency space since 2014, having previously founded and managed venture firm Alphachain Capital, working closely with entrepreneurs and builders. Founded in 2020 by Sishir in New York, Spectral Finance is a protocol designed to evaluate on-chain creditworthiness, allowing users to monitor their credit scores and risk insights. Users can review high-risk loan activity through the platform, view current positions, and receive low health warnings across different DeFi protocols. The MACRO Score is the world's first-ever Web3 credit score that is a numerical representation of an individual's on-chain creditworthiness; Spectral has generated over 50,000 MACRO scores for its users. Spectral's partners gain valuable access to credit risk insights for business decisions and offerings by leveraging on-chain data while users gain exposure to new financial opportunities. Spectral raised $23 million in August 2022, led by Circle Ventures and nine other investors.

Tune in to the 89th DeFi Decoded episode to hear Alex and Sishir discuss all things Spectral Finance. What lured Sishir into crypto in 2014, and what ultimately led to his founding of Spectral? How does Spectral’s MACRO credit score work, and which traditional themes were leveraged in its design? What is the competition like for Web3 credit scores, and how have legacy credit bureaus reacted to Spectral’s success?

TIMESTAMPS

[0:00] Introduction
[3:32] Crypto Origin Story
[4:49] Life Before Spectral
[7:40] Spectral Founding
[11:01] How Spectral Works
[12:21] User Personas and Uses
[15:22] Tracking Users With Multiple Addresses
[17:30] Growth in Different Global Regions
[21:40] Reactions from Legacy Businesses
[24:15] MACRO Score Design Rationale
[25:40] Web3 Competition Outlook For Credit Score
[29:00] Future of Spectral
[32:09] Conclusion

ABOUT DEFI DECODED PODCAST

Alex Tapscott, Andrew Young and guests break down the fundamentals of Decentralized Finance (DeFi) and how this cutting-edge technology enables individuals and institutions to transact, and create value, without the need for traditional financial intermediaries.

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Part of Ninepoint Digital Partner’s DeFi Decoded Podcast Series. Available at Google, Apple, and Spotify Podcasts.