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

Joshua Davis
Aug 22, 2018 · 6 min read
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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. These contracts allow groups to create technology enhanced broodfondsen or breadfunds. 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 formed to award claims 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:

Key Technical Findings and Practical Applications

The core of my findings are written down in these posts. The first post explains why P2P insurance is a natural evolution of existing technologies. The second post is the most valid use case I’ve found for peer-to-peer insurance. The third and fourth posts convey the foundation of the architecture in just under 5,000 words. These posts function to give everyone a broad overview of how TandaPay works without getting mired in unnecessary details:

  1. Groups Need an Easier Way to Hold Funds — Smart Contract networks enable groups to pool their resources
  2. A New Technology that Can Save Lives — Providing 100% of the US population with paid sick leave will save lives
  3. TandaPay DMCA Legal Defense Funds — How peer-to-peer insurance can be used to protect Youtube creators from abusive DMCA claims
  4. TandaPay Explained — How decentralized peer-to-peer insurance works
  5. True peer-to-peer insurance requires the blockchain to work
  6. Fraud Protections within TandaPay — How TandaPay safeguards policyholders from fraud
  7. Say Goodbye to the $500 Deductible — How to eliminate it with communities and blockchain
  8. Why TandaPay is Going to Work — How to build communities upon zero-fraud architecture
  9. The Myth of the Trustless Dapp — What do we mean when we say an app is “trustless”
  10. A discussion of the oracle problem — The right architecture to safeguard users from oracles in decentralized systems
  11. The Number One Problem Preventing the Widespread Use of Cryptocurrency is Not What You Think It Is
  12. P2P Insurance at its most basic level — Which features are essential for eliminating fraud and why?
  13. 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

Legal Analysis of P2P Payments and Contracts

These articles serve to discuss some of the regulatory challenges associated with creating a regulatory compliant protocol:

  1. TandaPay Cannot Be Regulated 1 — Direct payments are a protected first amendment right
  2. The Law and Smart Contracts — Smart contracts create coordination not obligation
  3. Andrew Mabon: TandaPay Cannot Be Regulated 2 — Court precedent as it applies to TandaPay
  4. Andrew Mabon: TandaPay Cannot Be Regulated 3 — Grounds for TandaPay groups to seek regulatory relief
  5. Kurt Mattson: TandaPay Cannot Be Regulated 4 — Analysis of Legal Precedent as it Applies to Payments in Discretionary Mutuals
  6. Kurt Mattson: The Law and Smart Contracts
  7. Kurt Mattson: Legal Protections to Thwart Fraud in TandaPay

Social Justice Applications

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. Information Escrows Get a Power-up
  2. The Politics of Sexual Harassment Data
  3. TandaPay is a weak insurance protocol — It is a powerful coordination protocol for galvanizing movements
  4. How P2P insurance can empower social justice in local communities
  5. Blockchains can be used to Solve Difficult Class Inequality Problems
  6. TandaPay and Workers’ Compensation insurance

The Importance of MakerDAO’s DAI

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:

Articles Written by Others + Q&A

Update: TandaPay can provide paid sick leave coverage

The US government’s present response to the coronavirus crisis has left more than 10 million people without paid sick leave coverage. We have to do better.

Here are some videos which demonstrate how the system works. The version of the software that would provide paid sick leave uses a different architecture. The architecture demonstrated in the videos is an older more complex version.

Code — There are two public GitHub repositories that host the code that makes up TandaPay. The application portion is broken up into two branches called app and api, which make up the frontend and backend respectively.

All current documentation is hosted in a drive folder. Some of it could use updating based on changes made late in development but it still provides a good overview of how the app has been built.

Deployment — Currently deployment is temporarily down due to funding which was exhausted in 2019.

Positive developments — As I demonstrated previously the patent for this technology has been granted.

Regulatory forefront — Given the advisory opinion of the U.S. Department of Labor, with this technology there is a way for employers to enforce mandatory enrollment. This would result in payroll deduction contributions which are 100% compliant with ERISA law. I will post more about this in the coming days. For now you can look at the slide deck which gives a high level overview of the solution (slide deck here).

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