TandaPay Progress Thus Far

Easy to bootstrap, scalable, peer to peer insurance, which doesn’t require 98% of users to know they are using cryptocurrency

Banksy’s flower thrower — inspired by Flowers to the People

I have been researching peer-to-peer insurance architecture for more than four years now. My first whitepaper was posted to Reddit on the 24th of February 2015 after I spent over six months investigating the topic.

Since that time I have published more than 80,000+ words on the topic of peer-to-peer architecture with the majority of that content being focused on insurance. My latest blog posts are a cultivation of many years of effort. TandaPay is an architecture for how to build peer-to-peer insurance on Ethereum using smart contracts. It is designed to allow groups of 30 to 150 people to form self-governing mutual insurance cooperatives. The ease at which a group can be started and its ability to scale are rooted in the following features:

  1. Coverage is supplemental in nature and does not provide full indemnity.
  2. Claims are parametric and linked to triggering events which release a known payment amount, making awards both fairer and simpler.
  3. TandaPay groups leverage a policyholder’s existing social network of friends and family to form a community which awards claims.
  4. Blockchain technology exempts members from all forms of insurance regulation. Payments are never held by a third party and premiums move directly from policyholders to claimants. In TandaPay, there is never a custodian who assumes the liability of managing member funds.
  5. Fairness is mandated by the protocol and uses zero-fraud architecture which provides policyholders with the highest level of protections.

Our slide deck can be found here. The core of my findings are written down in these eight posts. The initial two posts convey the foundation of the architecture in just under 6,000 words. They function to give everyone a broad overview of how TandaPay works without getting mired in unnecessary details:

  1. Say Goodbye to the $500 Deductible — How to eliminate it with communities and blockchain
  2. Why TandaPay is Going to Work — How to build communities upon zero-fraud architecture
  3. TandaPay Locker — Smart Contract Art (1) — A functional piece of art demonstrating what a blockchain is and how smart contracts work to eliminate third party custodians
  4. The Number One Problem Preventing the Widespread Use of Cryptocurrency is Not What You Think It Is
  5. P2P Insurance at its most basic level— Which features are essential for eliminating fraud and why?
  6. TandaPay Cannot Be Regulated 1—Direct payments are a protected first amendment right
  7. TandaPay Cannot Be Regulated 2— Court precedent as it applies to TandaPay
  8. TandaPay Cannot Be Regulated 3 — Grounds for TandaPay groups to seek regulatory relief
  9. TandaPay Cannot Be Regulated 4 — Analysis of Legal Precedent as it Applies to Payments in Discretionary Mutuals

If you want more content, you can read additional posts which focus on the ability of TandaPay to help communities advance their social agendas here:

  1. TandaPay is a weak insurance protocol — It is a powerful coordination protocol for galvanizing movements
  2. Blockchains can be used to Solve Difficult Class Inequality Problems
  3. My Questions Concerning TandaPay and Workers’ Compensation insurance

I have started a series on stablecoins since TandaPay is required to use a stablecoin to function. We look forward to integrating with MakerDAO to allow policyholders to pay their premium payments in DAI and receive their claim awards in DAI. This will provide a better user experience since users will not be exposed to the volatility associated with using ETH.

  1. The Case for Stablecoins 1 — Cryptocurrency price does not equate to cryptocurrency’s value
  2. The Case for Stablecoins 2 — Two case studies demonstrating how to innovate in fintech
  3. The Case for Stablecoins 3 — Examining TandaPay’s architecture to see a specific example where stablecoins change the user experience

Finally I wrote one post which which offers a very sentimental take on how blockchain based insurance will allow people to achieve a special type of immortality:

A New Type of Immortality — How blockchains allow people to live on through their community after they cease to be with us

I’m happy with this result and I am right now building a few teams who will develop the platform. I’m currently looking for university teams who will adopt TandaPay as a senior design project (see link for more info). If interested please reach out so that we can discuss opportunities for working together. So far UT Dallas, Miami University, are definite participants. I really look forward to speaking with as many universities as possible to make TandaPay a useful protocol for everyone.

I hope this type of architecture will inspire others to build more communities on the blockchain.