Blockchain technology has been rapidly gaining popularity in the finance industry. Owing to a plethora of data storage features that blockchain sports, they are promising in facilitating smart contracts and are increasingly being acclaimed as the future technology of trade and. Bitcoin was the first crypto coin that widely popularized cryptocurrency. Today, there are more than 1000 cryptocurrencies that are exchanged on various platforms. The insurance industry favors blockchain for its following essential features
No intermediaries - Blockchain technology removes the need for third parties to facilitate transactions. It conductions transactions peer-to-peer.
Data storage - Data stored in the blockchain is replicated on every node thus preventing data loss.
Immutability - Stored data in the nodes cannot be changed. If changed with a private key, it will be stored as an additional copy to the original file.
Smart contracts via blockchain facilitate quick validation processes and ensure maximum security. The advantages they provide are
Reduced Expenditure - It reduces the costs of operation and improves customer experience.
Identity Validation - Blockchain can instantly verify identities to facilitate the transfer of funds.
Prevention of Frauds - Transactions conducted through smart contracts are trackable and irreversible.
Smart contracts provided via a blockchain platform are proving to improve security, reliability, and efficiency in processing insurances. Quick verification processes along with anti fraudulent features of smart contracts are exactly what the insurance industry needs.
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