Decentralised insurance will flip the game on the market - Adam Hofmann

The CEO of Nimble believes that building insurance on a transparent, lightning-fast, secure platform with the possibility of community feedback is a good idea.

That's how the CEO of Nimble sees the development of the field. And for truth's sake, he has a strong case for it.

After all, no matter what anyone says, cryptocurrencies, Web3 and blockchain are evolving fast. As a result, there are concerns and scepticism about the volatility and security of digital assets, including investor funds.

Let's rethink the traditional insurance cycle for the DeFi world:

When a policyholder buys decentralised coverage for digital assets, they are voluntarily participating in the protection of their participation on the blockchain. Insurance purchase comes from a 'pool of money subsidised by what are traditionally called insurance providers.

In DeFi parlance, these 'insurance providers' are more appropriately called Liquidity Providers (LPs), or Insurance Liquidity Providers. These LPs can be any company or individual investing capital in a decentralised risk pool with other providers. 

This means that a community-built risk pool allows users, the project and the LP to work on a common call for safety and security. Project X (for example) can subsidise insurance premiums or the risk pool to encourage users to buy insurance. In this way, users can purchase cost-effective insurance coverage. 

This means that LPs have a constant flow of insurance premiums. Ultimately, the overall ABC risk is diversified, and the process becomes more efficient.