Welcome to Episode 2 of Trend Talk!
Hello all, it’s Scott and today we’ll talk about crypto insurance and digital inheritance.
Trend Talk Episode 2: Crypto Insurance
Not only are Web3 investors and participants realizing the need of digital asset protection, but many insurance providers are acknowledging the fact that insurance should be provided for cryptocurrency. As crypto becomes more regulated, scammers finding new ways, hackers finding vulnerabilities, and the surge of digital asset value, many want peace and easier ways rather than ledgers or buying a brand new computer only for transactions.
Crypto Insurance
The demand for crypto insurance has been growing as the value of one’s digital assets have been rising and reaching new highs. Initially, people thought crypto insurance would be meaningless due to non-regulations, crypto’s decentralized nature, and the same hassle for insurance claims. However, as the government pushes for regulation and shift of bitcoin itself, people’s thoughts are changing as well. Hacks and vulnerabilities related to security problems have always caught the attention of Web3 participants. All Web3 participants believe security should be tightened in addition to “insurance” policies regarding hacks or breaches.
Centralized insurance generally covers major centralized exchanges such as Binance or Coinbase. There have been some DEX Insurance platforms such as InsurAce or a centralized platform known as Superscript. The issue is only certain risks and losses are taken care of meaning that not everything is fully covered by insurance.
As adoption makes its way and crypto regulations are formed, insurance will come into play in the future. As crypto is still considered the wild west and premature, cryptocurrency still has quite a way to go.
Digital Inheritance
As crypto gains traction and people lose their keys with their digital assets, people have started to wonder how they’ll leave their digital assets when they pass. Now, we’re not talking about centralized exchanges or platforms, but decentralized platforms.
What happens to your crypto if you suddenly die? You’re the only one with the keys and password, right?
Well, you could always hire a lawyer and have an estate and be well planned, right? Well, some protocols and platforms are trying to find other ways to do this.
Sarcophagus.io is a decentralized “dead man’s switch” that allows users to set instructions to be carried out by a smart contract. The Sarcophagus protocol is basically a series of actions to complete to verify whether one is alive or not. If the person does not perform the actions, the deadman’s switch is triggered. A user originally creates a “sarcophagus” and adds the recipient’s address and a file to access the “assets”.
Vault12 is another Digital Inheritance platform. Vault12 allows the original user/owner to designate a beneficiary, who will inherit the entire portfolio of digital assets. Vault12 not only contains cryptocurrency and NFTs, but financial login information, legal documents, medical records, and more. When the beneficiary is designated by the Vault owner, a form/declaration is signed which can then be emailed to other parties (i.e lawyers).
As the Web3 space grows, it is only natural to have safeguards and safety measures in place.
See you next week for Trend Talk — Episode 3!
Thanks for tuning in!
***This is not financial advice~ these are opinions! DYOR (Do Your Own Research)!***
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