HomeKNOWLEDGECryptoInsurance in Blockchain: Future Expectations

Insurance in Blockchain: Future Expectations

In the past 1 year, Blockchain general and the market Crypto In particular, there have been strong development steps, more and more real-life applications are included in the blockchain.

From the development of decentralized finance (Defi), Gaming, NFT or recently new applications about health, music.. is also widely applied in blockchain.

What about insurrance so what? Insurrance Traditionally, there has been strong growth in recent years. As for in blockchain insurrance There have been no significant developments yet. So insurrance in blockchain will be like? What future do we expect from it in blockchain? Everyone, let's see the post of BTA HUB Please!!

What is decentralized insurance (Insurance)?

Decentralized insurance Simply understood will help us to reduce the risks of hacking in the decentralized financial market (Defi), exchanges…

Decentralized insurance acts as a safety net for Ecosystem DeFi . From wallet insurance to smart contract insurance, knowing that our assets are protected in the event of a failure or attack provides peace of mind for crypto investors. .

The development of the insurance industry compared to Gaming, NFT… in Crypto

In the traditional market, insurance has been experiencing tremendous growth in recent years, but in the current crypto market, the insurance industry only has a market capitalization value. 348.861.875 million US dollars (according to Coinmarketcap) – an extremely low number when compared to the traditional insurance industry and other industries in the market Crypto as Gaming, NFT...

Capitalization of Gaming in Crypto: 9.718.019.215 billion US dollars

Capitalization of NFT in Crypto: 17.165.537.303 billion US dollars

Current Crypto Insurance Industry Capitalization

The insurance industry can be seen in the market Crypto when placed next to other industries such as Gaming, NFT… is still very small, but in the future insurance is likely to become the next bright spot in the market. Crypto with the features it offers. 

Blockchain can solve the myriad challenges of current insurance problems

There are a number of ways blockchain can add value to insurance, allowing for more efficient and transparent services inside insurance:

  1. Improve efficiency: With so many time-consuming manual processes and the potential for human error, blockchain can streamline the processing of insurance policies.
  2. Smart contracts for insurance policies and faster claims processing.
  3. Payment verification via blockchain – this will allow financial transactions such as collection of claims or payments to be faster, more accurate and verifiable.
  4. The cryptographic nature of blockchain means that transactions can be trusted to be secure and authentic, which both ensures customer privacy and leads to less confusion. In addition, the application of blockchain will solve many challenges arising from insurance policies; such as getting the consent or approval of the customer. All policy information is recorded accurately and in real time. This includes the date, time, participants, location and value of every transaction….

Decentralized Insurance – A Promising Area for DeFi

Decentralized insurance is a promising area due to the transparency and security it offers investors. There are only a few products available at the moment but it certainly has the potential to grow and expand in the future. DeFi and its applications such as decentralized finance will continue to dominate the market for many years to come.

In the decade of blockchain development, we have seen countless cases of crypto investors losing their private keys and many exchange hacks resulting in the loss of billions of US dollars of investors. Furthermore, many of the smart contracts in existence today, especially DeFi-based ones, are pricing storage contracts that can be easily manipulated through loopholes. However, with decentralized insurance it puts us at ease knowing that our assets are protected in the event of an error or attack providing peace of mind for crypto investors.

Although insurance is not often mentioned in the community DeFi, but this is an area with huge potential to provide investor protection and confidence.

Notable insurance projects in the Crypto market

Nexus Mutual (NXM)

Nexus mutual is a blockchain insurance alternative based on Ethereum provides insurance for smart contract losses in the event of a hack or security breach resulting in the loss of user funds.

Nexus mutual not run by a company or organization but run by its own internal community. This means that project decisions are always recorded on the blockchain and then executed through the use of smart contracts.

The project plans to expand to other insurance products in the future such as insurance for crypto wallets and other conventional insurance products…

The products of Nexus mutual include: 

Yield Token Cover: peg loss protection 

Protocol Covers: protect against attack on a specific protocol.

Custody Cover: Protection against withdrawals and suspensions of your funds stored on centralized exchanges.

Nexus Mutual investment funds

InsurAce (INSUR)

insurace is a leading decentralized multi-chain insurance protocol that provides reliable and secure insurance services to users. DeFi, allowing them to protect their investment funds against various risks.

The outstanding advantages of insurace:

  • Low premiums
  • Cross-chain insurance (cross-chain)
  • Multi-chain accessibility
  • Sustainable investment returns (through the investment portal and mining program of insurace).

insurace designed as a new decentralized insurance protocol that empowers the risk protection infrastructure for the community DeFi. insurace offers portfolio-based insurance products with:

  • The pricing models are optimized to significantly reduce costs.
  • Insurance investment function with SCR mining programs to generate sustainable profits for participants
  • Provide coverage for cross-chain DeFi projects to benefit the entire ecosystem

Some investment funds of InsurAce

inSure DeFi (SURE)

InSure DeFi was born with a mission to provide stability to the crypto world, protecting investors from scams, stolen funds, and sharp devaluation of crypto portfolios.

InSure DeFi integrated by chainlink helps transactions and traceability provide the best security without compromising privacy. Reliable historical data of chainlink used to calculate the volatility index VIX and ATR per trading pair.

Cryptocurrency Insurance of insure DeFi based:

  • Dynamic pricing model to find the right market price through supply and demand.
  • Capital model to secure the amount of capital needed to support risk at any given time.
  • Voting Mechanism inSure Knife, to ensure any claims are handled in a transparent manner.

Investment funds and platforms that have integrated inSure DeFi

Summary:

The Crypto market is still on a strong development path, but it still has certain risks that make many people not really secure. And decentralized insurance with fairness, transparency and better risk management for users… is an indispensable part and will have a lot of potential for development in the future. Hopefully the article of BTA HUB will help everyone have an overview of the insurance industry in the Crypto market and have more useful information in the process of their investment!!

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