INS3- Innovation In the Crypto Insurance Space
INS3 is a fully decentralized, cross-chain insurance and coverage provider for the blockchain industry.
Last updated
INS3 is a fully decentralized, cross-chain insurance and coverage provider for the blockchain industry.
Last updated
Increasingly more users are locking away their money in Decentralized Finance vaults, engaging in Yield Farming and borrowing and lending using DeFi. As such, there is more money than ever locked up in DeFi protocols. The risk of these protocols being hacked and compromised is also rising with their growth.
Additionally, the sector, as a young industry with constantly evolving technology, is slightly more open to being attacked. As the maturation of the technology and the regulations that surround DeFi grow, attacks from hackers have become less prominent, though that’s not to say that frequent attacks are not currently happening.
With that being said, decentralized insurance is a way for users to protect their crypto assets in a borderless, trusted and secure manner, ensuring that they have protection even when engaging with the often dangerous world of decentralized finance.
As of the beginning of May earlier this year, DeFi has grown into a 100 billion USD industry. As a new industry that is borderless, permissionless, and trustless, decentralized finance is gradually introducing financial tools that help consumers to maximize their use of the DeFi protocols. Again, these include borrowing and loaning, future trading, and decentralized insurance.
Consider that in May of this year, a DeFi protocol was hacked and 14 million USD was drained. Also consider that the month prior to this attack, another DeFi protocol, EasyFi, lost over 80 million USD after it was hacked. The proliferation of DeFi hacks is so bad that there are articles compiling the “worst DeFi hacks of 2021.”
So, how does a person protect themselves against these losses?
Decentralized insurance with companies like INS3, which uses a DeFi plus NFT plus Oracle Machine and Cross-Chain, is a means of protection against the huge losses that the unregulated world of Decentralized Finance can incur.
Again, as the world of finance continues to change, there are certain constants that remain universally accepted.
The idea of insurance, or protection against losses, against acts of nature or acts that are beyond our control, continues to be an imperative form of finance, even now, 4000 years after it was first thought up.
