03/08/2021 What Distinguishes INS3 From its Decentralized Insurance Competitors

Security and Super Liquidity Set INS3 Apart

We’ve run through the various ways that decentralized insurance is storming the DeFi market. We’ve talked about how decentralized insurance protocols are helping to reimburse folks who’ve experienced transaction completion failure, flash loan exploits, oracle attacks, wallet hacks, and more.

Of course, we know that DeFi grew tremendously throughout 2020, as the sector boomed by around 2000% over the course of that year, but as a result of this growth key weaknesses and the need for more protection for users also became apparent.

The pace at which decentralized insurance has picked up is impressive to say the least. Already, high-profile DeFi insurance companies are paying out claims for DeFi users who have been burned by the market, for whatever adverse reason.

Previously we discussed how decentralized insurance adds transparency, assurance and reliability to the act of buying insurance. There are no hidden costs or complex formulas propagated by a central monolithic entity. The power of claiming is in the hands of the user, and the power of allowing that claim to be upheld is also in the hands of the multiple users on the blockchain. As an example of that, when you use INS3, you can take advantage of its decentralized nature, with their smart contracts able to be audited, verified and deployed on Ethereum and Conflux.

With all this being said, another question pops its head up. How does INS3 differ from other decentralized insurance platforms?

One of the most important innovations that INS3 has is its use of Oracle. This allows for the company to be able to record, track and securely transmit items of information. INS3’s place on Oracle is trustless and allows anyone to solve the issues around existing claim settlements, making this process faster and more transparent.

Basically your claim is covered 100% by Oracle, the security and validity of which is indeed a game changer both for INS3 and for people who are looking to buy into a decentralized insurance protocol.

With its use of Oracle, INS3 allows users to work within a system of user game theory. Essentially, this means that all users verifying claims work independently to build a consensus. This way of working ensures fairness among users when it comes to filing and receiving claims. The use of game theory on INS3 is a huge step forward when it comes to building a trustless, user-informed environment.

Another major benefit of using INS3 is the company’s ability to transform unwanted tokens into Non Fungible Tokens which can then be traded. This gives INS3 the edge over a company like, Cover Protocol, which bases it’s own Decentralized Insurance tokens around Fungible Tokens. The use of NFTs allows for flexible deposit and withdrawal options for users of INS3. Basically, you have the option to trade your liquid solvency capital off as an NFT when you longer need it, meaning that INS3’s insurance tokens are super liquid.

With these innovations, INS3 has already demarcated itself from the market, solving a variety of problems around reliability and security, which are imperative when considering buying insurance. INS3 has also ensured that your insurance premium is easily tradable when you are no longer in need of it.

As the DeFi ecosphere grows, so too do the players within that ecosphere. With new developments come new challenges, and INS3 has already staked its own claim and willingness to meet these complex challenges head-on, making it your best option when it comes to decentralized insurance.

Make sure you stay covered for the next market crash with INS3! Follow us on Twitter for the latest coverage news, or join our Discord to engage with our community!