Announcing our strategic partnership between Litentry & InsurAce, both teams will be working together to explore the application of decentralized identity technologies in the decentralized insurance use cases.
Although DeFi insurance leveraging on the blockchain technology has proven to be effective and useful, it can be further improved if more identity information can be applied to tackle some of the challenges.
Challenges in decentralized insurance protocol
Although blockchain technology can prevent the identity profile from being monitored. Its pseudo-anonymous nature creates additional issues which compromise user’s experience and fail to meet legal requirements.
- Insurance protocol is not able to identify humans from a tremendous amount of anonymous addresses.
- They cannot detect suspicious users such as hackers and money-launderers which may lead to fraud activities.
- They cannot assess users’ risk profile to customise insurance premiums for individuals.
- They cannot monitor user behaviour on a continuing base and therefore cannot optimise risk management strategy.
Litentry’s DID technology to empower insurance protocol
Under this partnership, Litentry will provide a privacy-computation-based KYC/AML identity service to InsurAce, the purpose is to verify the identity of its clients and assess their suitability, along with the potential risks of illegal intentions towards the business relationship. This data will be verified and signed by trusted third-party institutions. Subsequently, its zero-knowledge proof will be submitted to the chain. This will make sure one can perform computation and analysis of users data without compromising privacy.
Moreover, InsurAce will integrate Litentry’s innovation aggregation DID API and computation model, which will help them to better understand on-chain behaviours of insurance buyers and therefore manage their risk profile. This risk profile would be used to set premium for different users based on sophisticated algorithms.
Litentry is a cross-chance Decentralized Identity (DID) Aggregator that enables the linking of user identities among multiple decentralized networks. Built on the Substrate framework and featuring a DID indexing protocol, Litentry provides a decentralized, verifiable identity aggregation service that removes the redundancy of code and the hassles involved in resolving agnostic DID mechanisms. Litentry’s DID Aggregator is compatible with all DID standards, and powered by a reliable DID data interface. Everyone can build and submit DID methods to Litentry, making identity data easily accessible in the Web3.0.