DeFi Insurance system, A better replacement!

Do you think traditional insurance systems will fit for digital security? The traditional insurance system will not offer a full-fledged solution for digital security. Also, traditional insurance is not efficient enough to offer immediate security, which is indulged in fraud and scams.

The traditional insurance system needs to be changed to suit the modern world and innovations. Risk is unavoidable in any condition. So the assistance we provide to manage our risk should be efficient and trustable. So the DeFi Insurance system pops up to modernize the traditional insurance system by adapting it for digital investment security and mitigating the risk and fraud in the existing system.

Is it necessary to insure your digital assets?

A big Yesss! As the investment in digital assets arises, its vulnerabilities increase too. Hackers are impatient to penetrate your secured assets.DeFi drags sovereign investors to attain huge investments by its phenomenal services. Insurance acts as a ubiquitous element to prevent your assets.

DeFi onboards traditional finance to decentralized digital finance.

Decentralize your financial process for its secured permissionless and highly interoperable protocol stack built on public smart contract platforms. DeFi relies on Dapp and a decentralized platform. The unproductive traditional insurance system is upgraded with the distributed ledger system, blockchain technology. This modernization of the financial sector supports more audience and investors for decentralized investments and digital assets management, which empower the evolution of modern finance in a decentralized medium.

What is DeFi?

Decentralized finance is a blockchain-based platform that rejuvenates traditional finance in a transparent ecosystem. Financial services like money exchange, asset management, trading can take place in a decentralized environment. DeFi eliminates your inefficient, sluggish intermediates with decentralized applications.

DeFi’s Modernization of traditional Insurance

DeFi platforms modernize the traditional system by engaging with a distributed ledger technology called the blockchain. The system removes the intermediates and ledgers in a transaction and mediates the transaction with smart contract programs.

The smart contract is a programmed protocol to take counteraction by responding automatically if any failure occurs in the existing process.

Smart contracts play a significant role in decentralized financial systems. These contracts support investors to invest and manage their digital assets. DeFi’s extensive services and new-gen technology is yet to be explored. This lack of knowledge allows the hackers to take advantage of our digital assets by breaching the smart contracts which are not secured enough to handle devastating attacks.

DeFi Insurance system enables the investors to protect their digital assets from complete loss. You cannot call your banker or any other centralized assistance for losing your decentralized assets which are non-recoverable. Blockchain forms the foundation of DeFi to offer a wide range of cover solutions in the Decentralized Insurance industry. Decentralized insurance protocols can demonstrate protective measures and act as safeguards to the crypto industry by its transparency and security.

Covers offered by DeFi Insurance system

Crypto Wallet Insurance

Crypto wallet insurance covers your crypto wallet if it is hacked or stolen. As you manage all assets and crypto transactions in your crypto wallet, this insurance supports recovery from your loss.

Smart contract cover

This Insurance covers if a smart contract address is hacked or the funds are moved to another account. It also covers the permanently lost funds which cannot be recovered. This cover supports the user to manipulate the loss of funds from disaster. This cover policy enables the investors and lenders to lend crypto loans on the exchange without the worry of loss or repayment.

Collateral Protection for Crypto backed loans

This insurance covers if the collateral provided by the borrower is destroyed or stolen. It safe-guards the loss of your collateral, which is accepted by the borrower in exchange for something.

Benefits of DeFi Insurance

  • Protection of DeFi deposits.
  • Protection against crypto volatility and flash crash.
  • Immediate redemption of tokenized crypto.
  • Protection against the risk of theft and attack on crypto wallets.
  • Protection of funds from hacks on exchange platforms.
  • Covers technical and financial risks.
  • Immediate claim payouts.
  • Trustless claim and risk assessment.

Blockchain App Factory’s contribution to DeFi Insurance platform development

Blockchain App Factory makes its contribution to empower Decentralized Finance by developing multiple DeFi applications and services. Our expertise in the DeFi environment enables us to develop multiple applications in the DeFi platform that supports the evolution of decentralized finance and drives customer satisfaction.

DeFi Insurance platform is a promising niche to modernize traditional finance and attract investors to participate in huge investment opportunities. Developing a DeFi Insurance system drives your business and pitches your product in the investors’ market that attracts the investors’ concentration towards you. Our DeFi Insurance System development service offers you a scalable, robust product that can be tailored for your business requirement. Enable us to offer a better DeFi Insurance platform development solution that generates better revenue and investor’s attraction to contribute to the modernization of traditional finance.

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