The Need for a Compensation System Among Cryptocurrency Exchanges
The world was introduced to blockchain technology 10 years ago. Since then, we have seen plenty of applications of the technology that are rapidly changing the way we do things.
There still appears to be a disconnect between the process which makes the path to a seamless ecosystem elusive. There has been a sharp rise in the number of hacks and cyber attacks on digital assets which has scared a lot of users and investors from embracing cryptocurrencies.
Last week an AT&T user lost his crypto assets through SIM swapping. This led to the user filing a case against the telecom giant to compensate for the damages. In another incident, Bithumb, one of South Korea’s biggest cryptocurrency exchange was hacked, resulting in a loss of 35 billion Won ($31 million).
Coincheck, a Tokyo based crypto exchange revealed the news of being hacked in early 2018. Hailed as the biggest hack in the history of blockchain technology, users lost 58 billion Yen ($553 million) due to this incident. This event outmatched the Mt.Gox scandal in 2014 which resulted in investors losing $340 million.
As per the statistics posted in July 2018, up to $731 million worth of cryptocurrencies have been stolen as a result of these hacks.
Whenever these incidents happen, the procedure that follows is slow and inefficient. Users and investors are not given a specific timeline or the amount to be compensated. This leads to a waiting game which can span weeks and even months on occasion. Furthermore, these incidents result in a significant dip in the prices of these cryptocurrencies which causes even bigger collateral damage.
Incodium has developed a strategy which is aimed to fix these ongoing issues. Users who have been victim to hacks are provided with on-time compensation through a payout of INCO tokens.
Users can freely purchase these tokens separately should they wish to. Once the compensation process begins, Incodium uses smart contracts and a pre-determined set of parameters to decide the exact amount of compensation to be paid.
The compensation is lowest out of these 3 parameters:
1. 10,000 USD
2. 30 times the amount of Incodium coins owned by user
3. Actual damage
The compensation is then sent to the user’s Incodium Mobile Wallet App. From here, the user has the freedom to use INCO tokens to make purchases in retail and e-commerce.
Users can also earn additional coins by voluntarily opting into advertisements and offering data. Another way users can employ these tokens is to fund crowd-sourced purchases. These purchases allows users to buy high priced items in collaboration, which can later be sold off for shared profits.
Incodium seems to have worked out the winning formula to streamline the compensation process. At the time this news was written, the project is currently running it’s second public sale. 1 Ethereum will fetch 30,000 INCO tokens to buyers. INCODIUM was recently listed on the renowned LATOKEN exchange.
