First Insurance based on Blockchain (Part 06)

The role of decentralization in the insurance sector is very significant so I have shared with you five posts consecutively on this topic and I have tried to explain an incident that happened in 2017 so that we can understand the importance of the insurance sector very easily. Those who have consistently read my previous posts have understood that I have discussed its impact and importance in various parts of the posts. Today I am going to share the last i.e. 6th post of this topic.

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While Etherisc’s journey is still ongoing, its creation in 2017 marked the beginning of a new era for blockchain applications outside of finance. Today, Etherisc continues to innovate, pushing the boundaries of what’s possible in decentralized insurance. You know that any job has some advantages as well as some disadvantages or criticisms or challenges. Although insurance claims in a decentralized system are beneficial for both parties, there are some disadvantages of such a platform, which I am going to share with you today as the discussion on this topic will conclude with today's post. Despite its groundbreaking approach, Etherisc faced several challenges.

The adoption of blockchain technology in the insurance sector was slow, primarily due to regulatory hurdles. Many countries have stringent regulations around insurance, and decentralizing the process posed compliance issues. The general public was still wary of blockchain technology and crypto due to some scams at that time. Another concern was the risk of smart contract vulnerabilities. While smart contracts are designed to be immutable and trustless, they are still coded by humans. Any wrong in the code could potentially lead to massive financial losses. From the overall discussion, it is understood that apart from the few negative aspects, all the aspects are positive, so it is very important to have such a system in our society and system.

~ Regards,

VEIGO (Community Mod)