Texas, United States – United States, One of the biggest concerns with decentralized finance (DeFi) is that cryptocurrency itself comes with considerable risk. The risk is not all about the volatility of cryptocurrencies, such as Bitcoin and Ethereum, it is more about security and usability of hot and cold wallets that store assets and about exchanges and platforms that can be hacked. In fact, hacks involving DeFi protocols made up a substantial portion of all crypto hacks in 2020, with approximately $100 million in losses according to the CipherTrace 2020 Cryptocurrency Crime and Anti-Money Laundering Report.
“There needs to be a bridge between traditional finance and crypto, and we believe decentralized insurance is the answer. With enough reputable and reliable insurance providers in the space, we can create a safety net that properly prices insurance products and prevents players from losing significant portions of their funds overnight,” says Mike Miglio, CEO of Bridge Mutual.
“It is our belief that the only thing stopping traditional money from entering the crypto sphere is that the cryptocurrency environment, especially DeFi, is too risky and unpredictable. I am not just talking about high volatility in prices, I mean the constant threat that 1) all of your funds can be stolen from out of a smart contract; 2) if you want to keep your money in non-volatile assets such as stablecoins, their price can drop overnight due to a hack or due to the actions of a centralized entity; 3.) Exchanges can be hacked or run off with your money,” he adds.
Last November, Bridge Mutual announced the creation of its peer-to-peer insurance platform for stablecoins and crypto exchanges. Having attracted over $9 million in interest in its small $1.6 million private sale in just 48 hours, the project uses a decentralized protocol so that investors can lock tokens and provide coverage for smart contracts, coins, and exchanges that are using the insurance. Subsequently, stakeholders receive a portion of the product through its native BMI tokens.
Stablecoin insurance claims are settled instantly through the Bridge Mutual platform. For other cases, covered users would place detailed claims through a dedicated Bridge Mutual application. Each application undergoes a multi-phase voting process where all votes are made blindly and pushed to the blockchain at the same time to prevent people from copying each other. This is important because it incentivizes everybody to review each claim and vote honestly, as voting with the majority earns rewards while voting in the minority results in punishments (i.e. forfeiting of some coins staked in the claim pool).
Bridge Mutuals is setting itself apart from other companies by using native BMI tokens issued on the Polkadot blockchain, which prevents incurring high transaction fees among other things.
Another benefit of using Bridge Mutual’s technology is that it doesn’t require KYC (Know Your Customer) to purchase or provide insurance on the platform, and the system is entirely non-custodial. This means that Bridge Mutual won’t store sensitive user data, which preserves the privacy and safety of its users — an especially important feature in the crypto world where people can be extorted and physically threatened if their info is leaked.
“Our system is entirely non-custodial; we never have control or access over any user’s funds in the system), and we do not personally dictate how funds are reinvested on the platform. Long-term, we intend to completely revolutionize how insurance works,” says Miglio.
With this innovative approach, Bridge Mutual is allowing the DeFi sphere as a whole to mature. Insuring stablecoins and exchanges based on the crypto protocol benefits every user in the ecosystem. This new insurance platform can also help bring the masses into the digital assets realm if it proves to be a long-term, stable solution for the booming industry.
Bridge Mutual’s Token Generation Event (TGE) for the BMI token is scheduled on January 30, 2021. To learn more about the TGE and how to participate, you can read this quick guide posted by Bridge Mutual on their Medium.
Media Contacts
Further information at: https://www.bridgemutual.io/
Support Contact: [email protected]
Company: Bridge Mutual
Contact: Mike Miglio
Telegram: https://t.me/bridge_mutual
Medium: https://medium.com/@bridgemutual
Twitter: https://twitter.com/Bridge_Mutual
(Syndicated press content is neither written, edited or endorsed by ED Times)
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