Hype or the future of insurance?

Likewise, insurance policies on a smart contract through a blockchain could revolutionize the way policy wording is developed, distributed and …
Hype or the future of insurance?

IBC caught up with Gallagher Canada’s Mark Morency to find out what they really mean for the insurance industry.

IBC: How have insurers responded to blockchain and cryptocurrency clients?

Mark Morency:
With any emerging technology, insurers struggle to underwrite it because of its limited track record. Some insurers are open to blockchain; however, there are only a select few that will consider cryptocurrency clients. Blockchain is the engine for cryptocurrency, along with other security applications, so not all blockchain companies are a cryptocurrency risk, but that’s not always clear for insurers. There is a large client base that specializes in specific blockchain applications, including aspects of cryptocurrency, so when working with insurers, we work hard to understand the client’s business and differentiate their value proposition. I’ve spent a lot of time speaking with insurers to establish the credibility of these clients.

IBC: Will blockchain or cryptocurrency affect the insurance industry?

MM:
In any industry where identity management, trust between counterparties and fraud prevention are required, blockchain is a tool that can potentially resolve these issues. These are all characteristics that are important for insurance. For example, both claims and policy issuance can be significantly improved; if you look at the way proof of claim and forensic accounting occur after an event, it can be very time-consuming and expensive. Blockchain solutions can remove much of the reconciliation requirements, turning claims management into an almost instantaneous process. Likewise, insurance policies on a smart contract through a blockchain could revolutionize the way policy wording is developed, distributed and understood.

Cryptocurrency is a means of exchange that’s not necessarily being used on a large scale. If you look at North America, especially in the US, users of the currency and the SEC have treated it as an investment product, which is very different than how it is being treated in some other countries. It is better understood as a means of exchange or form of liquidity. Cryptocurrency can be thought of as internet-enabled cash. There’s a lot depending on regulation as to how cryptocurrency will find its place in the world. At this point, it is too early to say if it will have any meaningful role in insurance.

IBC: How will blockchain and other technologies impact financial institutions in the years to come?

MM:
This is why financial services is such an exciting industry: The most interesting trends are both invention – that is, creation of new technologies – and innovation, or creating new ways of using technology. For example, payment systems within banking – right now, a small fraction of the world’s payments happen on cryptocurrencies. While it is a new phenomenon that banks and insurers should monitor and be aware of, it is not yet a big disruptor in the payment system. Payment technology is already very advanced on the front end for consumers but hasn’t changed much for many years on the back end – behind the scenes. The payment industry is going to be impacted by both technology invention and innovation.

A growing number of transactions occur, and will occur, on smart contracts, and a growing amount of activity will be recorded on a blockchain. These are innovative uses of technology, not new technologies. While we focus on these technologies, the largest trends are happening right under our noses.

The trend to watch is who controls the payment system. In March, FIS made a deal to buy Worldpay, which alone processes more transactions than the largest American banks. Merchant processing was a business dominated by banks until they sold these divisions over the past few decades. Increasingly, the merchant processor is not a bank, yet the merchant processor owns that merchant relationship, and the payment processor, which is essentially the plumbing for the payment system, controls the client relationship. With the growth of e-commerce and blockchain eventually allowing for trusted transactions without an intermediary, this leaves the payment processors in a powerful position to take the client relationship away. I believe the long-term play between FIS and Worldpay is about having a global standard for multinational corporations to deal with, which will have a significant impact on the financial services industry.

New innovations are also supplemented by new tech such as AI, intelligent voice recognition and emulation, Big Data, and eventually quantum computing. The speed and scalability issues that innovations such as blockchain face today are going to become irrelevant because of new inventions. How many hours within financial institutions are spent on reconciliation, answering calls or fraud detection? All of these activities can be better done by tech that exists today and is coming to financial institutions in the very near future.

As these technologies evolve, financial institution companies are implementing them, and directors and officers have to consider the impact on their brand and reputation. Providers of tech have to meet increasing amounts of scrutiny of their insurance policies when supplying financial institutions. Brokers and insurers have to also consider the advice we are providing and whether we are advising appropriately on cyber and D&O insurance.

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IBM has introduced a blockchain-based supply chain verification network

Enterprise services company IBM announced a blockchain-based supply chain verification network, aptly named “Trust Your Supplier” (TYS).

Enterprise services company IBM announced a blockchain-based supply chain verification network, aptly named “Trust Your Supplier” (TYS). In its press release, IBM said that TYS is “designed to eliminate manual time-consuming processes and help reduce the risk of fraud and errors, ultimately creating frictionless connectivity across supply chains.”


Business insider Intelligence

IBM will collaborate with blockchain services company Chainyard to bring TYS to a prominent list of clients, including Anheuser-Busch InBev, Cisco, GlaxoSmithKline, and Vodafone. TYS is set for a commercial release in Q3 2019.

The TYS network gives us another glimpse of how blockchain could disrupt traditional supply chain networks. According to data from Gartner cited by IBM, blockchain will track the movement of an estimated $2 trillion worth of goods and services by 2023. Here are a few ways we foresee blockchain impacting supply chains:

  • Increased granularity of data. In conjunction with IoT devices, blockchain can increase the frequency and specificity of communication throughout the supply chain. For example, in the food service industry, a sensor could be attached to deliveries to track temperature, humidity, and light exposure as products travel through the supply chain. Blockchain would allow such measurements to be documented through a distributed ledger that makes the data accessible, reliable, and responsive. The granularity of this data will be determined by the extent to which IoT devices proliferate.
  • Reduced administration costs. Blockchain could reduce the need to manually input information about goods and services as they travel through supply chains. The technology would automate and digitize the tracking process, often with the aid of IoT devices. This would help solve an accuracy issue that plagues the supply chain: an estimated 10% of all freight invoices contain inaccurate data which can lead to disputes.

The blockchain adoption gap: While the potential savings enabled by blockchain are significant, investing in the technology still does not make sense for many companies.

A 2018 survey by Gartner found that only 1% of CIOs have invested in and deployed blockchain solutions. Adding on to that, adopting the technology requires subject-area expertise that is in high demand, making labor expensive and difficult to find. In the same Gartner survey, 23% of CIOs said blockchain skills were the “most difficult to find.”

Finally, many of the benefits of blockchain will be enabled through the network effect, whereby companies reap benefits because blockchain platforms connect them to other companies using the technology. The catalyst for mass adoption may be industry-specific, as major players utilize their leverage to force blockchain adoption — Walmart, for instance, required direct suppliers to use its blockchain-enabled tracking platform starting in January 2019.

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Dagchain versus Hyperledger | Comparison 2019

That is the point at which a pseudonymous individual or a group of individuals called Satoshi Nakamoto distributed a paper reporting the new …

Blockchain innovation has been around since 2008. That is the point at which a pseudonymous individual or a group of individuals called Satoshi Nakamoto distributed a paper reporting the new innovation. From that point forward, cryptocurrency dependent on blockchain advancements, as Bitcoin and Litecoin, have multiplied broadly.

Such a large number of digital currencies have jumped up over the previous decade that the entire subject can feel overpowering. In this article, we’ll demystify the ideas of digital money and the innovation that it’s based on and talk about the contrasts among Dagchain and Hyperledger.

Hyperledger

Dagchain HyperledgerDagchain Hyperledger

The Hyperledger venture is a communitarian exertion propelled by the Linux Foundation in 2016. Its expressed point is to unite individuals from various ventures so as to investigate the uses of blockchain innovation. The Hyperledger task does not have its own cryptocurrency. It plans to progress blockchain innovation and think of new uses for it.

Hyperledger’s individuals incorporate pioneers from the banking, figuring, and aeronautics ventures. Its individuals incorporate Airbus, American Express, Cisco, and Deutsche Bank, to give some examples.

Hyperledger records a scope of various activities on its site, all including better approaches to utilize blockchain innovation. For instance, the project known as Burrow is gone for improving the manner in which keen contracts work, and the Hyperledger Quilt is intended to make installments and exchanges simpler crosswise over various records.

Issues with Hyperledger

The Hyperledger venture has created a few advancements in the field of blockchain innovation, yet the project works in an unbending top-down design. The general population and gatherings that remain to profit the most from it are as of now in the worldwide one percent. The Hyperledger project needs clear and quick advantage for the vast majority of the world’s residents, particularly for those in developing countries.

Dagchain

Dagchain is the innovation that backs the cryptocurrency known as Dagcoin. It was made because of the deficiencies in blockchain innovation, which we’ll get into later in this content piece.

Dagcoin

Dagchain HyperledgerDagchain Hyperledger

Dagcoin is the money sponsored by Dagchain. It was considered with the objective of making a decentralized digital currency for use in developing nations. The thought was to enable common individuals to adapt to a general sense uncalled for framework and to help individuals manage the issues brought about by money depreciation.

The Dagcoin cryptographic money is planned to be much the same as a normal cash, just better. Rather than simply one more item to trade, Dagcoin will likely be the most usable currency ever.

Dagcoin expects to be a stage up from normal cash also. This implies improving the speed of exchanges while diminishing the cost, offering access to cash to more individuals with lesser confinements and impediments, giving more opportunity to execute.

How Is Dagchain Different from Hyperledger?

Dagchain does not work on a blockchain arrangement. It’s anything but a progression of blocks; rather, each different exchange frames its own block. The blocks are then connected to past exchanges so as to shape what’s known as a coordinated non-cyclic chart, or DAG.

The Dagchain was intended to be brisk moving and solid enough to back a typical currency. It was intended to democratize cryptocurrency and increment its versatility. While industry pioneers and huge business are free to utilize Dagcoin, the innovation was initially intended for use in the developing scene. It was planned to keep running as easily as could be expected under the circumstances and to be available to individuals who might not have foundations in innovation.

In contrast to different digital forms of money, it doesn’t depend on miners/diggers to affirm exchanges. Dagchain has each new individual from the system affirm in any event one past exchange. This implies there is no two-level framework, as there is in different cryptocurrencies, in which miners/diggers are advantaged over different clients. It likewise implies that there is a motivating force to keep Dagchain working rapidly, since each new client needs to affirm past exchanges before including their own exchange.

The Breakdown:

Dagchain is new innovation that looks to cure issues that emerged with blockchain innovation. It makes digital currency available to individuals around the globe. It Speeds up the affirmation procedure for exchanges and wipes out the two-level framework in many cryptographic forms of money.

Hyperledger runs on blockchain innovation, backs blockchain undertakings bolstered by figuring, aeronautics, and banking pioneers. It does not host a cryptographic money.

Concluding Thoughts

Dagchain and Hyperledger differ in the way they work just as in their planned uses. Albeit both have their underlying foundations in blockchain’s “distributed ledger” framework, Hyperledger means to investigate new uses for blockchain, while Dagchain stays away from it altogether with an end goal to expand exchange speeds while diminishing or wiping out expenses.

They were additionally made considering entirely various uses; Hyperledger expects to streamline installments and exchanges for enormous banks, while Dagcoin was imagined with an end goal to make a steady, decentralized cash to help clients in creating nations. On its way of becoming the cryptocurrency of the future, Dagcoin also educates the masses through marketing by providing knowledge about the benefits of digital currencies.

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Mindtree joins open source blockchain community Hyperledger

IT services firm Mindtree has joined an open source blockchain community Hyperledger. Being a general member of the Hyperledger group will help …

IT services firm Mindtree has joined an open source blockchain community Hyperledger.

Being a general member of the Hyperledger group will help the company offer industry-specific blockchain solutions to prospective clients, the company said in a statement.

Mindtree was recently acquired by engineering conglomerate Larsen and Toubro.

The Hyperledger project, like most open source projects, is a multi-stakeholder effort and is hosted by the Linux Foundation. It is built around 14 business-based blockchain and distributed ledger technologies.

A distributed ledger is also known as a shared ledger. It consists of replicated and synchronised data that is spread across multiple geographical locations. It has no central data centre or a central administrator.

Hyperledger focuses on building industry-specific applications, platforms and hardware that can be used in enterprise environments, the release said.

Mindtree has been making strategic investments in blockchain since 2016. Through the Hyperledger community, the software company will have access to whitepapers, use cases, solutions and a talent pool.

“Enterprises are seeing the strategic value and want to adopt Blockchain to reimagine some of the current process areas and implement futuristic solutions. With this membership, we will be able to assist our customers in realizing their vision in implementing these solutions,” Madhusudhan KM, chief technology officer, Mindtree, said in the statement.

The Hyperledger community currently includes 270 organisations including technology companies, startups, service providers and academics.

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Mindtree unites with Hyperledger to enhance blockchain development

Mindtree, a company called “born digital,” has joined Hyperledger, a provider of blockchain technologies for business. Where Mindtree delivers digital …

Mindtree, a company called “born digital,” has joined Hyperledger, a provider of blockchain technologies for business. Where Mindtree delivers digital transformation and technology services from ideation to execution, Hyperledger is an open-source collaborative effort to advance cross-industry blockchain technologies.

Madhusudhan KM, chief technology officer, Mindtree, said, “Enterprises are seeing the strategic value and want to adopt Blockchain to reimagine some of the current process areas and implement futuristic solutions. With this membership, we will be able to assist our customers in realizing their vision in implementing these solutions,”

Mindtree had made investments in blockchains since 2016, and Hyperledger has been a significant part of the finances. It will join as a general member and will be able to raise the progress of its abilities in addition to providing industry-specific blockchain solutions to its clients. Being a general member, Mindtree will have access to the training materials, whitepapers, use cases, and solutions shared through the community system.

KM also said that to build strong domain expertise around enterprise Blockchain-based solutions that give improved transparency, security, and traceability to their clients across many industries including retail, manufacturing, banking, insurance, airlines & hospitality, uniting with Hyperledger will further extend the company’s efforts.

Hyperledger is hosted under the Linux Foundation and is a multi stake-holder with 14 business blockchain and diverse ledger technologies. Brian Behlendorf, executive director, Hyperledger acknowledged the collaboration and stated, “Mindtree’s large global footprint and ongoing investment in developing blockchain expertise make it a natural fit for our growing community. As enterprise blockchain adoption accelerates, companies that are committed to helping companies put the technologies into production will be a vital part of the ecosystem. We welcome the work Mindtree will do on this front.”

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