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Insurance of crypto-currency accounts and transactions, hedging of risks in the future cryptoeconomics

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"Fintech" is experiencing unprecedented growth against the backdrop of the development of the blockbuster. This is not surprising, because financial markets are the most ready to implement blocking innovations. In fact, many modern contracts for the purchase and sale of securities have already been codified, smart contracts have been transferred, and their implementation has been automated.

However, in the sphere of crypto-economics, the less common notion of "insurance", (insurance technologies) is gradually gaining popularity, as we all live in a world of probabilities. Accounts insurance is one of the incarnations of the Blockchain 2.0 concept, which was first voiced by Nick Szabo – the blockbuster evangelist, whom part of the community considers the true author of Bitcoin's protocol.

The idea of ​​creating codified insurance opportunities for the crypto industry has recently become especially relevant. Repeatedly we have witnessed the collapse of crypto business because of hacking, flaws in the code and human negligence. All these factors restrain the development of crypto-currencies and blocking, and deter new entrants from the introduction of technology.

However, according to the forecasts of the well-known British analytical company Juniper Research, which is known for its research on crypto-currencies, the revenues of the insurance technology industry may soon rise to 235 billion US dollars, which is 34% more than in 2016 (175 billion dollars) . According to experts, to stimulate the growth of income "fear" will be the application of smart contracts that will push the industry to growth. Fertile ground for the development of insurance will undoubtedly serve as a growing, new and huge market of crypto-currencies, which also needs insurance of accounts, transactions, and hedging of risks from exchange rate volatilities. The insurance industry is inevitably moving into the field of cryptoeconomics, as this sphere needs to be protected from risks.

Juniper experts believe that: "Blocking technology will accelerate the adaptation of insurance services to consumer demands, ensuring the establishment of smart contracts (or smart insurance policies) in the industry, thanks to the ability to automatically perform actions, in accordance with the" changing circumstances "of the insured Persons ".

In the process of forming a decentralized block-ecosystem for safe and easily executable b2b interactions, the Jincor project plans to introduce its own unique developments for the insurance of crypto-currency accounts and transactions in order to provide users with the opportunity to secure their crypto assets. History shows that such risks are more than real, respectively, a product that allows managing these risks is extremely in demand.

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The features of the crypto-currency model are that it is necessary to deal with crypto-economic risks, crypto-currency liquidity and a decentralized management model. Therefore, to develop insurance capabilities within the decentralized Jincor ecosystem, we have faced the need to implement the business logic of insurance transactions on smart contracts in a decentralized environment.

What will decentralized insurance look like in the Jincor ecosystem?

* Insurance smart contracts will be implemented within the framework of Jincor's transparent block-ecosystem, being one of its components.

From the point of view of financial jurisprudence, Jincor's crypto-currency accounts can be considered Vat as deposit funds that can be insured.

Jincor platform intends to offer participants 3 types of insurance opportunities:

  • insurance of crypto-assets in deposit accounts
  • insurance of transactions
  • hedging of risks

Insurance services in the framework of b2b block-ecosystem will be implemented by large banks and insurance organizations, as the practice of p2p-insurance does not meet the requirements of the corporate platform, since insurance amounts in the sphere of b2b, often represent huge funds. Transactions with insurance companies will be concluded within the framework of the block-ecosystem, using the template smart contracts of Jincor.

Upon the occurrence of the envisaged insurance event (hacking of service, corporate mail, etc.), the participant organization of the ecosystem will be able to contact the insurance company And receive the amount of the insurance payment if the investigation of the insured event does not reveal a forgery of evidence. The counteragents will be able to appeal the results of the insurance proceedings in the process of a decentralized arbitration hearing. This procedure is described in one of our previous articles.

In addition to standard insurance situations (break-ins, thefts) within the framework of the block-ecosystem, insurance against fluctuations in the value of market assets or hedging of crypto-currency risks should be provided.

Usually, hedging is carried out for the purpose of insurance against sudden changes in market conditions and the most common type of hedging is futures contracts.

Derivative financial instruments (derivatives) based on crypto currency are now in demand more than ever, and their development is only accelerating, as many companies and individuals are betting long-term prospects for crypto currency, hoping that their value will continue to grow.

However, within a secure environment, crypto-active holders should be able to protect their investments without leaving for fiat.

Financial instruments, such as futures and options, will provide users of the Jincor ecosystem with opportunities to hedge risks, and also contribute to the stabilization of the exchange rate.

The heads of many international companies are already looking for ways to insure crypto-active assets and block-insurance it can help.

Jincor is an integral ecosystem in which participants have the opportunity to use all modern developments in the field of blockade, without having special technical knowledge. On the Jincor platform, organizations can easily make crypto-b2b payments, establish contacts, conclude smart contracts, automate their business processes, insure crypto assets and, if necessary, use the option of decentralized arbitration.

Jincor ICO

Starting August 21, JCR tokens will be available under pre-ICO 2 times cheaper than the starting price of the token (ICO will begin on November 1). Buying JCR tokens on pre-ICO will ensure you a constant progressive profitability, as their value in the future will depend on the popularity of the platform in the business environment (and this popularity is beyond doubt).