INS3: Embrace the new decentralized paradigm in the insurance industry

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Insurance is the code of wealth guaranteed by the law of large numbers. It used to be centralized, and now it’s a paradigm revolution, decentralization, where everybody can come in and write insurance. Scattered knowledge and wisdom, a million heads are better than Zhuge Liang.

INS3 is decentralized insurance. First, explain the big reason why this is useful. Now everyone plays DEFI and registers the exchange to ignore the systemic risk, such as FCoin running away, various DEFI hackers attack, and do not think of insurance.

When I was studying finance, the textbook of insurance, with the red cover, was also very thick, but it was basically the last one I studied. The first one was microeconomics, macroeconomics, monetary science, finance and taxation, venture capital, and the last one was insurance. This is a person’s cognitive law.

In the past, our insurance was underwritten by centralized companies such as Pacific Insurance and Ping An Insurance, whose wealth code was the law of large numbers. Now decentralize so that everyone can underwrite their rich money. We don’t need a centralized agency to guarantee that people who buy insurance will get paid. Instead, code and mathematical models — smart contracts on the blockchain — can guarantee that millions of insurers will get paid. In the past, the centralized insurance institutions used their reputation to tell everyone that the insurance they bought could pay, while the decentralized insurance used the funds in the mortgage lock chain to tell the market that they had a stronger trust in the payment ability.

We can assume that when the first centralized exchange, CEX, comes out and makes an announcement, it has insurance for everyone who deposits money. Such a declaration establishes a first-mover advantage in the symbol competition, and other CEX choose to follow suit. Just as banks now have insurance against bank failures.

Currently, the product form of INS3 is still very simple, aiming at the insurance of centralized exchange, decentralized exchange, stablecoin and so on. As long as the prophecy is strong enough, the scope of insurance will expand. Strong Oracle support is needed behind it, and the more granular the support, the more powerful the insurance business. Insurance is the foundation of finance, and Fannie Mae and Freddie Mac, those insurance CDS are nested layer after layer. Finance is very developed, but there is an untold secret behind it, that is, the central bank does not have unlimited underwriting capacity, too big to fail is evil.

A few advantages of INS3:

• - Architecturally fully decentralized, the insurer’s decision on the event is based on the data of the multi-party prognosticator.
• - Fair token distribution, no pre-digging, no private placement, basically slow release of token ITF according to TVL.
• - Cross-platform operation, including Ethereum, HECO chain, etc.
• - The project is original and the team has strong ability of iterative research and development.

Decentralized insurance can be a big industry. Decentralized paradigm innovation will change the “too big to fail” situation. Decentralized insurance will become the foundation of the whole DEFI ecology.

[dig manual] (https://mp.weixin.qq.com/s/-7taBiUjX_IueKtETEDheA) https://mp.weixin.qq.com/s/-7taBiUjX_IueKtETEDheA

[white] https://ins3.gitbook.io/docs/#qi-dai-bi-jing-ji-mo-xing (https://ins3.gitbook.io/docs/#qi-dai-bi-jing-ji-mo-xing)