Car insurance is a bygone era. But we say “yes!” to cryptocurrency insurance.
Today we’re going to tell you about crypto insurance. Sometimes hackers attack projects or projects scam their users. So there should be something to avoid it…yes?
Let’s start with a bit of preface. Crypto insurance is not so developed yet: every cab driver can tell you about bitcoin, but he doesn’t know about insurance. And we’ll explain it to you. Currently, this sphere is nascent; there are very few such instruments worthy of attention. But you know what we think? That there may be more and more of them. Every month cryptocurrency is getting more and more attention from institutional investors. Significant funds, conservative investors with considerable assets are coming in. New solutions are emerging as needed. Of course, these guys want to see the tools they are used to use in the world of finance. Let’s see what types of insurance are there:
1. Insurance for protocols.
This type of insurance can be used by protocols/projects against cases of hacking. There is speculation that insurance for projects by themselves will become as much the norm as passing audits. But, bro, that’s just a guess, so DYOR. The project insurance system will be the same as in the centralized world. The project pays the money at the billed rate and may not worry about hackers interfering with their smart contracts.
2. Insurance for the users.
A lot of people recently wrote about a project like InsurAce (not financial advice, pls). It provides users with the ability to insure their assets. It’s already working on several chains. It is probably the most popular insurance protocol at the moment, so we took it as an example. You can insure your funds against a scam. Here’s how it works: if someone finds a vulnerability in a smart contract or if the team decides to take the money, but you have insurance. It is also possible to insure your assets on centralized exchanges. Of course, it is unlikely that Binance will break, but such a tool is available nonetheless.
Okay, tell us what project we should explore, ok? We wanna do reviews you will love!
We like to bring you something new, and today we talked about insurance. The main thing is to understand that the field is not yet developed enough, even though it has a high chance of doing so. We wrote you a couple of lines for your general development. More content is coming…