inchain – insurance from BTC / ETH losses

This is a sponsored blog post.

inchain

Inchain is a decentralized insurance platform. It is based on Ethereum smart contracts.

Digital cash (crypto currencies) such as Bitcoin, Ethereum and Monero come with many advantages over the fiat money system. Banks cannot arbitrarily inflate the supply, transactions are harder to censor, very low transaction costs and very fast international transaction speed. However, there are some disadvantages. Security. Once money was lost due to a hacked exchanges, there is no bank to bail one out. One popular way to obtain digital cash are exchanges.

Mt. Gox was an exchange. People could trade fiat currency for Bitcoin there. Also Mt. Gox is probably the most famous examples of a failed exchanges. It got hacked. Thousands of coins were stolen. The customers of Mt. Gox still have not got their money back. Also lots of other exchanges were hacked.

So until now the best advice is to not park too much money on exchanges. Not more than one can afford to loose. This makes the whole process of acquiring digital currencies tiresome. This is where inchain comes in.

The idea behind inchain is,

Wouldn’t it be a great idea to insure my balance on exchanges for a premium?

Customers of inchain will be able to purchase a premium to insure their balance on supported exchanges. Should an exchange be compromised and the users of that exchange loose money, then inchain will compensate the customers who bought their insurance.

The following mechanisms maintain the financial stability of the platform:

•  Inchain transfers risks to investors by issuing insurance ­linked bonds. Investors take on the underlying risks and receive coupons as rewards.

•  The insurance funds are managed by token holders, who choose investment strategies through voting. Investment returns are spent on bond coupons and then dividends are paid to token holders.

The inchain team is currently running an initial coin offering (ICO). By participating one becomes a shareholder of the platform that has voting rights and is eligible for dividends.

For more information, see:

Patrick started developing Whonix, the Anonymous Operating System in 2012, when quickly others joined efforts. He collected experiences working pseudonymous on Whonix for two years, enjoys collaboratively working on privacy preserving software.

Posted in General Security News, sponsored

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