In the TradFi system, low-income groups often face the dilemma of high-interest rate borrowing. The root of this phenomenon lies in the lack of collateral, credit history, and stable income proof. However, the emergence of Web3 technology is changing this situation.

Huma Finance, as an innovative project in the Web3 space, is redefining the methods of credit assessment and income verification through blockchain technology. It utilizes on-chain data to establish credit profiles for users, generates income proofs based on on-chain activity history, and assesses users' repayment capabilities based on this information. This approach not only breaks down the barriers of TradFi but also provides new opportunities for those who struggle to obtain credit within traditional systems.

The core function of Huma Finance can be summarized as a Web3 version of a payroll and credit reporting system. It records various work incomes of users on the blockchain, including activities such as completing tasks, providing services, operating management, and maintaining nodes. Based on this data, Huma generates "proof of income streams" for lending platforms to reference in determining loan limits and Intrerest Rate.

This model is fundamentally different from traditional on-chain lending. In the past, on-chain lending primarily relied on the user's asset status, such as wallet balance or the amount of high-value NFTs held. The innovation of Huma lies in its ability to allow ordinary "blockchain workers" to demonstrate their credit value through their own efforts and work performance.

Huma Finance's application has shown great potential in some emerging markets. In regions like Africa and Latin America, where Web3 technology is developing rapidly but the TradFi system is relatively underdeveloped, many entrepreneurs are beginning to adopt Huma's system to build proof of employee wages. Combined with stablecoin networks such as USDC, this solution provides local workers with a more convenient and transparent way to receive their salaries.

With the continuous advancement of DeFi technology, innovations like Huma Finance are gradually changing the underlying structure of financial services. This not only provides more people with the opportunity to access fair financial services but also opens up new possibilities for the global financial inclusion initiative. In the future, with the further development and application of such technologies, we expect to see the birth of a more open, fair, and efficient financial ecosystem.