Bridge Mutual: A Step Or A Giant Leap Towards Cryptocurrency Mainstreaming?
Blockchain has been one of the most significant technological advancements the world has witnessed in the past decade. With initial bumps, claims and criticisms, controversies, and some unfound wild speculations often going topsy turvy, Blockchain’s most popular application, the cryptocurrency, has managed to emerge as a viable alternate medium of value storage and transfer. In principle, the very idea behind altcoins is based on the premise that it offers a more secure, fast, and decentralized system of storage and transfer of funds than the conventional fiat currencies.
The idea has since resonated well with both individual and institutional investors allowing the altcoin market to grow exponentially in the past five years to say nonetheless. However, the challenge remains exploring and providing scalable solutions to the roadblocks that limit the cryptographic digital tokens from taking the leap towards becoming mainstream. Over the years, the most significant hurdles have been security; especially exchange breaches and hacks.
Attempting to address the problem, Bridge Mutual is a unique initiative that aims at providing a pocket-friendly, transparent, seamless, and decentralized mechanism to safeguard crypto investments.
Securing Altcoin Investments
Several promising ideas of creating a secure environment for cryptocurrency trading on the technological front are already taking shape. However, the question remains, are they enough? Do they provide a cent percent assurance? Full-proof security cannot be guaranteed. Not until there’s a credible and transparent mechanism that represents the interest of investors and provides safeguards for their investments even in case of a breach. The one thing which creates a significant difference between other conventional investments and cryptocurrency investments is insurance. Bridge Mutual is literally pioneering the idea of providing insurance against hacks, exchange branches, crashes, and other similar threats that dampen the profitability and disenchant potential investors from the altcoin market.
Insurance On Blockchain
The idea is not new. Attempts to disrupt the conventional insurance industry capitalizing on the Blockchain technology have been made in the past. However, the majority of them have been limited in the sense that they have merely facilitated the traditional insurance mechanism to be executed on a cryptographic network. Bridge Mutual, has advanced and comprehensive plans with fresh ideas that make it all the more enticing.
Many here would agree that there is an acute lack of transparency in the conventional insurance industry. Tedious paperworks and unnecessary litigations are not uncommon. All in all, for a significant majority of customers, the experience of claim settlement has not been very pleasant. A research involving 8000 auto and home insurance customers in the EU concluded by American-Irish services giant Accenture, finds that 61% of them would prefer using digital channels to check the status of their claims. Moreover, the dissatisfaction can be gauged from the fact that a significant 53 percent said they would not recommend their insurance partner to others for failure to make digital interactions and the way their claims were processed.
The takeaway is that the market is favorable to advanced technical interventions in the Insurance industry. The challenge is to create an ecosystem that delivers on these shortcomings. Bridge Mutual is eyeing this multi-billion dollar market with its revolutionary idea of eliminating the unwanted tedious processes slowing the traditional claim settlement processes by leveraging blockchain technology.
So What Will It Be?
Powered by the Polkadot Network, the Bridge ecosystem will be governed by its token-holders. Each token (the BMI token) will have one vote and though the initial metrics and variables will be set by the team, these can be modified through the internal governing process involving the voting system.
To begin with, Bridge is coming up with three types of coverage, viz Smart contract coverage; exchange coverage; and stablecoin coverage. What makes the product package stand out is the protection against market volatility. The stablecoin coverage will allow investors to get the value of the crypto purchases insured. It will be executed through a set of dedicated APIs that track the price feeds from a set of listed exchanges simultaneously in real-time. The customers would qualify to make a claim if the price of the insured coin remains under a certain bracket for a certain specified period of time.