Decentralized Insurance In Crypto Ventures

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DeFi insurance projects are a type of insurance that is based on crypto and blockchain technology and is also designed to meet the needs of the crypto industry in terms of losses. This new aspect of the crypto and blockchain sectors is believed to soon explode and become a necessity for investors as the years go by. The traditional insurance industry is a multi-trillion dollar venture; likewise, it is expected that DeFi insurance projects will also grow and become great in the coming years. As we all witnessed last year’s winter (that is, the financial crisis in the crypto market), the need or importance for crypto-based insurance coverage became clear. Below, we will be discussing some of these insurance projects, looking at the services they have to render and the benefits we can derive from them in the long run.


Benefits Crypto Insurance Industry
The idea of decentralized finance is all about bringing the power of finance to the grasp of the community of investors. This innovation has opened a world of pleasant opportunities for investors. However, a decentralized financial system has its demerits. One major demerit of decentralized financial systems is that they are volatile, thus making it difficult or impossible for crypto ventures to be insured conventionally. The Crypto Insurance Protocol is designed specifically to cater for blockchain-based investments. The benefits of decentralized finance also apply to the insurance protocol: it is transparent, and no go-betweens or brokers are required because the system is based on blockchain principles.

Through some of these benefits of blockchain technology, fraudulent activities can be reduced and the speed of transactions can be increased. A decentralized insurance protocol operates similarly to a traditional insurance venture in that they provide similar services but differ in terms of the unique specific functions they provide crypto investors (such as covering losses due to hacker activity or bankruptcy). These essential services they render in the crypto industry will facilitate the growth of crypto insurance as investors become more aware of the essential service it provides. Blockchain technology and the crypto industry are still new phenomena. We have just barely scratched the surface in this sector, more opportunities are waiting to be explored.


Some Crypto Insurance Protocols
This is the list of some of the crypto insurance projects:

  • Nexus Mutual:
    It has a market capitalization of $274,186,199 and a locked value (that is otherwise known as TVL) of $180 million. Nexus Mutual is the first project on the list of crypto insurance projects. They provide compensation or indemnity for clients whose funds are lost due to the activities of hackers, or those whose funds are lost due to the bankruptcy of decentralized and centralized exchange platforms.
  • IsurAce:
    It has a market capitalization of $3,130,541 and a total value locked (TVL) of $11.35. So far, this project has made a payment of $11.6 million to indemnify investors. This crypto insurance project is new. It was launched in early 2021. And it has been so successful that it has become second in rank on the list of blockchain insurance projects.
  • Etherisc:
    The Etherisc has a market capitalization of $2,752,797. And the insurance protocol is a branch of the Ethereum network. This insurance project even includes flight delay insurance and insurance against the effects of natural disasters.

All the crypto insurance projects have their own native token, which investors use for transactions on the platform.

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