3 Challenges with Blockchain in Insurance and How PAL Network Intends to Overcome Them

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PAL Network

3 min readNov 12, 2018

While blockchain technology comes with plenty of potentials to solve the problems of traditional industries like insurance, it isn’t perfect and has its flaws too.

Challenges often identified with blockchain can be identified, but not limited to, the following three issues:

Scalability
Privacy
High costs

As we inch closer to the launch of our Mainnet, we’ve decided to share how PAL Network intends to overcome these problems with our protocol.

Scalability

The PAL Network protocol runs on two layers: public and private. The public layer comprises Supernodes, which require a minimum staking amount of 100,000 PAL.

Supernodes pre-process and pre-verify transactions. They filter them before sending them to the private layer. This takes a huge load off the Masternodes in the private layer.

Masternodes, which require a minimum staking of an amount of 1,000,000 PAL, are capped at 21. With transactions already pre-verified by Supernodes, it is a seamless and efficient process to complete verification before merging them into a block.

Privacy

Supernodes do not have access to the private layer, which has access to sensitive information. Access to smart contracts and dashboard are strictly restricted to partners (insurers, policy underwriters, etc) — even Masternodes are not able to access this information.

All personal data is encrypted and only authorised users — owners of the data and those authorised by the owner — can access and decrypt the data.

High Costs

Instead of using traditional mining rigs that rack up high operational and electrical costs, the PAL Network protocol uses a dynamic fee structure that ensures insurance policies are affordable.

Fee structures and transaction rewards are detailed in this article here.

Launching Soon

We are moving closer to the launch of our Mainnet each day and we’re very excited to announce it to the community. As we gear up for the official launch of our Mainnet, we have created a PAL Network Testnet protocol for our community to get their hands on our T(est)PAL tokens — dictating how much amount to transfer and keep as a balance. Find out how to use our Testnet protocol in the demo below:

For everything else you want to know about Supernodes and Masternodes, check out our Bluepaper Hub here. Join our Telegram group for all the latest news!

About PAL Network

PAL Network is a dual-layered protocol that uses data to bridge the gap between consumers and financial providers by providing a new level of accessibility within the finance ecosystem. The company also works with insurers to provide CryptoProtect insurance coverage for digital assets and smart contracts. PAL Network is a member of Singapore Fintech Association and ACCESS. PAL Network’s affiliate entity, PolicyPal Singapore, has an active user base of 50,000 for its app, which helps users to manage, buy and optimise their insurance policies.

Currently, PAL Network has partnerships with insurance companies, FWD and Ergo, to explore potential use cases of our decentralised financial protocol together. Furthermore, we have also established collaborations with blockchain projects NEM, QTUM, Sentinel Protocol, MediBloc, Digix and traceto.io to offer CryptoProtect and mainstream insurance products for the projects themselves, along with their respective communities.