Vitalik Buterin believes that insurance DAOs are quite “underrated.”
Buterin added that a decentralized insurance system is symmetrical.
The Ethereum co-creator said that insurance DAOs will ensure “less imbalance of incentives.”
Vitalik Buterin, the co-creator of Ethereum, weighed in on the potential of blockchain technology to the modern insurance industry. He stated how much insurance DAOs were “underrated” hinting the sector had immense potential.
Modern insurance is generally not symmetric. Consumers pay a fixed premium, and the company shareholders get more if they deny more claims and less if they accept more claims. Two classes of participants.
— vitalik.eth (@VitalikButerin) September 19, 2024
The Problem with Traditional Insurance
DAO cartographer @owocki took to social media platform X (formerly Twitter) to declare that “insurance is the biggest scam in modern finance.” He urged the digital asset community to build a “transparent/fair crypto-based insurance,” pointing out that insurance companies often keep the money that policyholders pay and then find “arbitrary and capricious reasons” to deny claims. In response,…
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