Glossary
Key terms and concepts used in crypto credit scoring, DeFi lending, and the VIZI ecosystem. Alphabetically organized for quick reference.
- Block Explorer
- A web application that allows users to browse and search blockchain data, including transactions, wallet addresses, block details, and smart contract interactions. Examples include Etherscan (Ethereum), Solscan (Solana), and Polygonscan (Polygon). Block explorers let anyone independently verify the on-chain data that VIZI uses for scoring.
- Collateral Ratio
- The ratio of collateral value to borrowed value in a lending position. A collateral ratio of 150% means you have deposited $150 in collateral for every $100 borrowed. Higher ratios indicate safer positions. VIZI's Collateral Ratios signal (12% weight) measures how well-collateralized your positions are maintained over time.
- Credit Bureau
- A company that collects and maintains consumer credit information from lenders and creditors, then sells that information to other lenders. In the US, the three major bureaus are Equifax, TransUnion, and Experian. VIZI is not a credit bureau and does not operate under the FCRA.
- Cross-Chain
- Refers to activity or data that spans multiple blockchains. A cross-chain transaction might involve moving assets from Ethereum to Polygon via a bridge. VIZI uses cross-chain identity resolution to link a user's wallets across different chains into a unified credit profile.
- DeFi (Decentralized Finance)
- Financial services built on blockchain smart contracts that operate without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, insurance, and asset management. DeFi lending and borrowing activity is the primary data source for VIZI Scores.
- FCRA (Fair Credit Reporting Act)
- A US federal law that regulates how consumer credit information is collected, shared, and used. The FCRA governs credit bureaus (Equifax, TransUnion, Experian) and the scores derived from their data (FICO, VantageScore). VIZI is explicitly not a consumer reporting agency under the FCRA. VIZI Scores are informational tools, not consumer credit reports.
- FICO Score
- A credit score created by Fair Isaac Corporation, ranging from 300 to 850. FICO scores are used by approximately 90% of US lenders for consumer credit decisions. FICO uses proprietary algorithms and bureau-reported data. VIZI uses the same 300–850 range for familiarity but derives scores entirely from on-chain blockchain data.
- Gas Fee
- The fee paid to execute a transaction on a blockchain network. Gas costs are paid in the chain's native token (ETH on Ethereum, SOL on Solana). Gas spending is not directly a VIZI scoring factor, but consistent gas usage indicates active wallet participation that contributes to the Wallet Age & Activity signal.
- Liquidation
- The forced closure of a borrowing position when the collateral value drops below the required threshold. A liquidation bot or keeper seizes the collateral, repays the debt, and collects a liquidation bonus. Liquidations are the most damaging negative event in VIZI scoring (19% weight), similar to a default in traditional credit. They are permanently recorded on-chain and cannot be removed.
- Mixer
- A service or protocol designed to obscure the origin and destination of cryptocurrency transactions by pooling and redistributing funds. Usage of mixers like Tornado Cash is flagged by VIZI's Sanctions/Fraud screening signal and can result in a reduced score or floor score of 300, depending on the specific mixer and regulatory status.
- Multi-Sig (Multi-Signature)
- A wallet that requires multiple private key signatures to authorize a transaction. Multi-sig wallets are commonly used by DAOs, institutional investors, and teams to require consensus before moving funds. VIZI scores multi-sig wallets the same as single-signature wallets, based on their on-chain activity.
- OFAC (Office of Foreign Assets Control)
- A division of the US Department of the Treasury that administers and enforces economic sanctions. OFAC maintains the Specially Designated Nationals (SDN) list of individuals, entities, and wallet addresses subject to sanctions. VIZI cross-references every scored wallet against the OFAC SDN list as part of the Sanctions/Fraud Flags signal. Any match results in an immediate floor score of 300.
- Off-Chain
- Refers to data or transactions that occur outside of a blockchain. Off-chain data includes traditional bank records, bureau credit files, and private databases. VIZI exclusively uses on-chain data and does not incorporate any off-chain data sources.
- On-Chain
- Refers to data or transactions recorded directly on a blockchain. On-chain data is publicly verifiable, immutable, and timestamped. VIZI exclusively uses on-chain data — no off-chain, self-reported, or proprietary data sources are used in score calculation.
- Protocol Diversity
- A VIZI scoring signal (2% weight) that measures the number of distinct DeFi protocols and blockchains a wallet has meaningfully interacted with. A wallet active across Aave, Compound, Uniswap, and Lido on multiple chains demonstrates broader ecosystem engagement. This is the lowest-weighted signal because diversity alone does not indicate creditworthiness.
- Repayment History
- The most heavily weighted VIZI scoring signal (28%). It measures whether a wallet repays what it borrows across DeFi lending protocols. VIZI tracks every borrow-repay cycle on supported protocols. A complete repayment record with no missed cycles produces a perfect signal score. Recent activity is weighted more heavily than older history.
- Sanctions Screening
- The process of checking wallet addresses against international sanctions lists including OFAC's SDN list, EU consolidated sanctions, and other watchlists. VIZI's Sanctions/Fraud Flags signal (9% weight) is binary for direct matches: a sanctioned wallet receives an automatic floor score of 300 regardless of all other factors.
- Self-Sovereign Identity
- A model of digital identity where the individual owns and controls their identity data without depending on a centralized authority. In on-chain credit, your wallet address is your self-sovereign identity — you control it through your private keys, and no institution can revoke, freeze, or modify your identity without your consent.
- Smart Contract
- A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met. DeFi lending, borrowing, repayment, and liquidation are all governed by smart contracts rather than human intermediaries. Smart contract interactions are the primary data source for VIZI scoring.
- Staking
- The process of locking cryptocurrency tokens in a protocol to support network operations (such as validating transactions) in exchange for rewards. Staking rewards contribute to VIZI's Verified Income Proxies signal (5% weight) as a form of recurring, predictable inbound value flow.
- VantageScore
- A credit scoring model developed jointly by Equifax, TransUnion, and Experian. Like FICO, VantageScore ranges from 300 to 850 and is based on bureau-reported data. VantageScore is a registered trademark of VantageScore Solutions, LLC. VIZI is not affiliated with VantageScore.
- VIZI Score
- A crypto credit score ranging from 300 to 850 that measures the creditworthiness of a blockchain wallet based on its on-chain financial history. The VIZI Score is computed from 8 published signals with exact weights, using only publicly verifiable blockchain data. It requires no SSN, no KYC, and no personal information. VIZI Scores are informational tools for the crypto economy, not FCRA-regulated consumer credit reports.
- VIZIScan
- VIZI's free, public score lookup tool. Enter any wallet address on VIZIScan to see its VIZI Score, letter grade, confidence level, and full factor breakdown instantly. No account creation or sign-up is required. VIZIScan is free for all consumers with no usage limits.
- Wallet Address
- A unique identifier on a blockchain that serves as the destination for receiving and sending cryptocurrency. On Ethereum and EVM-compatible chains, wallet addresses are 42-character hexadecimal strings starting with "0x." A VIZI Score is computed for a specific wallet address based on its complete on-chain transaction history.
- Yield Farming
- The practice of deploying crypto assets across DeFi protocols to earn returns through trading fees, interest, or token rewards. Yield farming activity contributes to multiple VIZI signals including Protocol Diversity (breadth of engagement) and Verified Income Proxies (recurring returns).
Learn More About On-Chain Credit
Now that you know the terminology, explore how VIZI uses on-chain data to build crypto credit scores.
How On-Chain Credit Works Score Factors Explained