More on quadratic funding - Insurance
Decentralized insurance aims to make insurance cheaper, faster to pay out, and more transparent. With more automation, coverage is more affordable and payouts are a lot quicker. The data used to decide on your claim is completely transparent.
Ethereum products, like any software, can suffer from bugs
and exploits. So right now a lot of insurance products in the space focus on
protecting their users against loss of funds. However there are projects
starting to build out coverage for everything life can throw at us.
A good example of this is Etherisc's Crop cover which aims
to protect smallholder farmers in Kenya against droughts and flooding.
Decentralized insurance can provide cheaper cover for farmers who are often
priced out of traditional insurance. Click here for more information: Machine Learning
This sounds odd. "Why would I want to program my
money"? However, this is more just a default feature of tokens on
Ethereum. Anyone can program logic into payments. So you can get the control
and security of Bitcoin mixed with the services provided by financial
institutions.
This lets you do things with cryptocurrencies that you can't
do with Bitcoin like lending and borrowing, scheduling payments, investing in
index funds and more. With so much going on, you'll need a way to keep track of
all your investments, loans, and trades.
There are a host of
products that let you coordinate all your DeFi activity from one place. This is
the beauty of DeFi's open architecture. Teams can build out interfaces where
you can't just see your balances across products; you can use their features
too.
You might find this useful as you explore more of DeFi. You
can think of DeFi in layers:
·
The blockchain – Ethereum contains the
transaction history and state of accounts.
·
The assets – ETH and the other tokens
currencies.
·
The protocols – smart contracts that provide the
functionality, for example a service that allows for decentralized lending of
assets.
·
The applications – the products we use to manage
and access the protocols.
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