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

Aug 22, 2018 · 4 min read
Banksy’s flower thrower — inspired by Flowers to the People

I have been researching peer-to-peer insurance architecture for more than five years now. My first whitepaper entitled “Peer-to-peer insurance on an Ethereum blockchain” was posted to the Ethereum subreddit February 2015 prior to Ethereum’s launch. Since that time I have published more than 100,000+ words on the topic of peer-to-peer architecture with the majority of that content being focused on insurance.

TandaPay is an architecture for how to build peer-to-peer insurance on Ethereum using smart contracts. It will be open source software available to the general public for them to freely use or modify upon its completion. 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.

My motivations for working on this project are described here:

Our slide deck can be found here. The core of my findings are written down in these posts. The initial two posts convey the foundation of the architecture in just under 5,000 words. They function to give everyone a broad overview of how TandaPay works without getting mired in unnecessary details:

  1. TandaPay Explained — How decentralized peer-to-peer insurance works
  2. True peer-to-peer insurance requires the blockchain to work
  3. Say Goodbye to the $500 Deductible — How to eliminate it with communities and blockchain
  4. Why TandaPay is Going to Work — How to build communities upon zero-fraud architecture
  5. The Myth of the Trustless Dapp — What do we mean when we say an app is “trustless”
  6. A discussion of the oracle problem — The right architecture to safeguard users from oracles in decentralized systems
  7. TandaPay Locker — Smart Contract Art — A functional piece of art demonstrating what a blockchain is and how smart contracts work to eliminate third party custodians
  8. The Number One Problem Preventing the Widespread Use of Cryptocurrency is Not What You Think It Is
  9. P2P Insurance at its most basic level — Which features are essential for eliminating fraud and why?
  10. TandaPay Cannot Be Regulated 1—Direct payments are a protected first amendment right
  11. TandaPay Cannot Be Regulated 2— Court precedent as it applies to TandaPay
  12. TandaPay Cannot Be Regulated 3 — Grounds for TandaPay groups to seek regulatory relief
  13. 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. How P2P insurance can empower social justice in local communities
  3. Blockchains can be used to Solve Difficult Class Inequality Problems
  4. 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 working with tarski.tech and blOX Consulting to develop the platform. Together we are laboring to make TandaPay a useful protocol for everyone. I hope this type of architecture will inspire others to build more communities on the blockchain.



Joshua Davis

Written by

Incentives architect for TandaPay

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