London, United Kingdom–(Newsfile Corp. – December 3, 2021) – After half a year of development, INS3.Finance created the first fully decentralized insurance market, with all payments determined by smart contracts. Different types of insurance products such as CEX, DEX, Yield, Lend are now available, and more insurance demand scenarios are continuing to be added. At the same time, in order to respond quickly to market demand, INS3.Finance released V2 Roadmap on November 11th, launching insurance services for Business-to-Business, including various programs for DAO, insurance brokers, and smart insurance to provide users with more secure and convenient insurance services.
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The current state of the market for decentralized insurance
Demand for cryptocurrencies is booming, as more than 100 million people worldwide use some type of them, according to World Cryptocurrency Research Lab. “Currently, only a few insurance companies provide cryptocurrency insurance. Like any valuable financial asset, the investment of cryptocurrency owners needs to be protected,” said Louis Rothschild, Senior Decentralized Insurance Analyst at INS3.Finance.
The complexity of the decentralized trading environment also deters insurance companies. So far, the DeFi industry has seen countless risk events, but due to the limitations of the current open insurance design, such as voting systems and artificial decision, user losses are not covered. In fact, the number of claims occurred about the open insurance industry to make large payments for risk events rarely occur. The DeFi market, which is showing exponential growth, urgently needs a brand-new insurance program to overcome the centralization or artificial intervention in the payment problem of the open insurance industry, so that the insurance industry can complete the overall decentralization.
The inevitability of DeFi insurance
As demand for cryptocurrencies rises from large mainstream corporate and institutional customers, so does the need for financial protection and risk control in the crypto world. Crime and fraud are pre-insurance issues. Cryptocurrency crime and fraud currently have the highest cost of insurance. “Due to corruption and fraud, tens of millions dollars in cryptocurrency are lost every year,” Louis Rothschild said. “There are many ways to crack or deceive cryptocurrency owners, and many people feel the need to insure their cryptocurrencies in any way. As a result, the insurance industry’s interest in these industries is rising.”
DeFi insurance is gathering steam
Currently, the largest insurance market in the crypto industry is the exchange to ensure that it will not be stolen by cryptocurrency hackers.
In the past, hackers attacked entire cryptocurrency exchanges and stole all crypto assets in their wallets. Customers have no right of recourse and their funds are permanently lost. To prevent this from happening again, crypto wallets have begun to provide insurance for their customers’ assets, so if a hack occurs, customers can at least get their funds back.
Cryptocurrency is developing an insurance plan
A trend in the field of cryptocurrency insurance is to create its own insurance fund when other places where DeFi cannot provide such insurance.
A small portion of each transaction is added to an insurance fund to make up for losses caused by hackers. We will see the DeFi industry provide more insurance, although with the development of commercial insurance products, some DeFi industries may be more willing to outsource rather than deal with the overhead of managing their own self-insurance funds. For example, Conflux and TokenPocket provide supplementary insurance (supported by INS3.Finance) to cover wallet users who have lost their cryptocurrency assets.
The crypto market will soon be regulated, which may attract insurance companies
Cryptocurrencies may soon become mainstream, and as the industry normalizes, regulators will begin to supervise them.
“As companies like Tesla buy it in large quantities, other companies will soon follow,” Louis Rothschild said. ” This situational focus will cause the government to step in and try to regulate it, which will make cryptocurrency more attractive to insurance companies.”
How does INS3.Finance protect encrypted assets?
INS3.Finance is an encrypted multi-chain decentralized commercial insurance that can fully cover blockchain protocols and decentralized organizations (DAO), and provide a full range of security services for various encrypted digital asset scenarios. It will become the first financial innovation of a major encrypted insurance ecosystem that integrates the decentralized financial “DeFi + NFT + Oracle + cross-chain” model.
INS3.Finance, a multi-chain decentralized insurance agreement, has currently completed 2 million dollars in financing, which is funded by Web3.VC, OKEx Blockdream Venture, Conflux, Legos capital, BiKi, Horizon capital, Gate labs, Beagle capital, Orange code capital, Redline Capital, and CollinStar Capita participated in the investment and directly invested in the Public blockchain. At present, it is estimated at thousands of dollars.
Previously, INS3 has received Grant support from the Conflux DAO Technical Committee, which is currently the largest unconditional funding amount received by the entire DeFi industry.
Prospects of INS3.Finance
Traditional insurance is upgraded to smart NFT contract insurance. In a decentralized world, because DAO can be a “company” composed of countless NFT contracts with clear rights and responsibilities defined by smart contracts, it can be freely disassembled into countless NFT contracts with clear rights and responsibilities defined by smart contracts, and direct Transaction, so that all intermediaries created to resist the “principal-agent” problem will be dissipated.
INS3.Finance uses a parametric decentralized insurance model to protect user assets from the use of cryptocurrency exchanges, custodial service providers, and smart contracts. The agreement does not require a claim assessor or any other intermediary to process the claim, and once it complies with the insurance rules, the claim will be resolved immediately. The contract replaces the enterprise, and NFT goes beyond the limitations of “art and games”. In the reimbursement mechanism, the automatic repayment judgment is realized through a fair game between the oracle and the user, thereby abandoning the process of voting on governance tokens to determine whether to reimburse, and minimizing the governance of the system. With the development of INS3, it will provide solid insurance support for more DeFi projects in the future, and escort high-quality projects.
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