Sikoba and Horizen Partner to Bring Transparency to the Decentralized Credit Market

This article was first published on Horizen
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Sikoba to build a customized sidechain on Horizen to safeguard financial data transactions 

November 11, 2020— Horizen, a technology platform enabling businesses and developers to create their own public or private blockchains, has announced a partnership with Sikoba, a decentralized blockchain-based system for peer-to-peer IOUs. By partnering with Horizen, Sikoba will further provide its users with the ability to obtain legal certainty, establish credit history, and verify financial transactions in a safer and more secure manner. 

Sikoba aims to make informal credit – when IOUs are used instead of cash – much more efficient. Informal credit is widely used by small businesses in developing countries, but suffers from a lack of legal recognition, the inability to transact outside of one’s trusted network, and the absence of a verifiable audit trail. By registering debt on a public blockchain, Sikoba overcomes those roadblocks.

Through Sikoba, users obtain legal certainty, have the ability to establish a credit history and can transact beyond their immediate circle of trust with identified trusted intermediaries. Finally, Sikoba also reduces the need for cash settlement by automatically clearing circular debt. As debts and credits registered on Sikoba’s federated blockchain fall into the category of financial data, this information must remain private, and within a trusted system. Sikoba users, however, should still have the ability to verify and generate proofs of their transactions, within a public ecosystem, as needed. 

“To achieve this,” said Alex Kampa, Founder of Sikoba, “we will write these proofs onto a public Horizen sidechain, using Horizen’s zero-knowledge toolkit and the Zendoo interoperability protocol. Horizen technology will therefore enable us to provide an essential service to Sikoba users. We very much look forward to working together with the Horizen team on this in the near future.”

Integrating Horizen’s sidechain technology, Zendoo, ...

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