How the Blockchain Will Change Insurance

1. Blockchain Insurance Benefits
How the Blockchain will change
insurance forever
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2. What is the Blockchain?
• The technology behind Bitcoin
• A distributed, digital ledger
• Incorruptible
• Based on the ECDSA Algorithm (Math based
using Prime Numbers)
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3. Blockchain Advantages
• Decentralized – No one person has control
• Transparency: Historical transactions open to
everybody
• Every transaction is signed and verified by a
network of nodes
• Fraud Prevention – All transactions are visible
and verifiable
• No single point of failure
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4. Blockchain Disadvantages
• Transaction speed – All transactions need to
be verified. Nodes (admins) must solve a math
puzzle which takes minutes to add another
block to the chain.
• Space – Blockchain fills up continuously
• 51% rule, if more than half of computers
working as nodes tell a “lie” or fib a
transaction, the lie/fib becomes the truth
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5. What is the Elliptical Curve Digital
Signature Algorithm?
• The encryption behind the Blockchain and
Bitcoin
• Based on Prime Numbers, using the graph
below
• Uses a public key and a private key to “sign”
transactions
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6. Node Network
• Connected computers to the blockchain
network
• Hold an Administrator role
• Validate and relay transactions to the rest of
the network
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7. Can the Blockchain be hacked?
• ECDSA is more secure than a SHA1 encryption
• Duke University study by Professor Campbell
Harvey estimates hacking the blockchain
would take an amount of guesses equal to
the atoms in the known universe. 2^255!
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8. Smart Contracts
• Contracts executed when certain conditions
are met
• Self-executed
• Enable exchange of money, property, shares
without using a middleman
• Rule definitions and enforcement included
• Work on an If-Then premise
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9. Smart Contract Advantages
• Autonomy – no need for a middleman
• Trust – Everybody sees the distributed ledger
transactions
• Speed – No paperwork, middleman, days off
for back and forth
• Safety – cryptographic protection
• Accuracy – Avoid human error
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10. Blockchain and Insurance Uses
• Identify property
• Identify parties
• Digital ledger verifies ownership
• History cannot be rewritten
• Removes certificates
• Eliminates audits
• Claims embeddable on the blockchain
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11. Authentication and Provenance
• Authenticate identities. On the blockchain,
your “code” never changes.
• Your identity and transactions are viewable on
the Blockchain for everybody to see
• All Blockchain parties see your history,
property history, and transaction history
• Provenance is permanent on the Blockchain.
From origin until present time
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