InChain, a platform for the insurance of assets stored on cryptocurrency exchanges and wallets, has been launched by a group of bitcoin and blockchain industry experts and developers. An ICO for the project is due to launch next week on the 12th October. Based on Ethereum blockchain, it implements insurance and insurance bond servicing mechanisms via smart contracts.
Following events in blockchains recent history where property has been lost due to a hack or other illicit activity, the platform provides the ability for users to insure against full or partial loss of their assets. InChain also offers investment options and governance of an insurance fund via a DAO.
Inchain transfers risks to investors by issuing insurancelinked 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.
Founders Sergei Primachik and Dmitri Lazarichev said: “The basic principles behind InChain’s organisation and functioning are security and stability enhancement for cryptoeconomy in general, as well as heating up the world community’s interest towards blockchain technology and cryptocurrencies,”
Besides insuring against risks there is also a system of insurance crypto-token bonds. This allows users to invest by purchasing insurance bonds and receiving passive revenue in the form of coupon payments for obligations in exchange for taking risks in case insured events occur.
A spokesperson explained: “InChain provides tools for two user groups: those who own cryptoassets, like Bitcoin or Ethereum, and wish to insure their risks; and those willing to invest their cryptoassets in order to gain profits from the investment,”