Among the many fears that haunt cryptocurrency investors, nothing can be more terrifying than the famous hacks, whether by isolated individuals or mass situations (such as, for example, DAO hack or 2007). In this scenario Nexus Mutual is born, promising to be the definitive innovation expected by blockchain users in terms of insurance, being based completely upon Ethereum smart contracts.
HOW DOES IT WORK?
Nexus Mutual works as a decentralized alternative to insurance. Using blockchain technology to create a mutual (a risk-sharing pool) to let insurance in the hands of the ones of best interest: the users.
Built on the Ethereum public chain, the platform allows anyone to become a member, replacing the idea of the average insurance system. Nexus Mutual can be considered owned by the members themselves, as they state on their official website.
NO BRAINER SERVICE:
For now, Nexus offers only a single product, being a new company with an unprecedented proposal. The service offered, the Smart Contract Cover is meant to cover against hacks or bugs in Ethereum smart contracts. Until recently, Nexus was the only alternative insurance platform using blockchain available on the entire world.
WHY IS IT INTERESTING FOR DEFI USERS?
Today Nexus Mutual offers a great opportunity for anyone who interacts actively with Ethereum smart contracts. Today, the most active users of the platform are locking funds in DeFi, as well as new projects looking for coverage for their contracts, giving initial users some guarantee regarding security.
However, the team behind the project still hungry for much more, having new products to be released in the short term. These plans include, for example, a revised staking approach designed to enhance reward levels and make things simpler for the users. This is just one of the news, which will soon be available.
WHOS BEHIND THE IDEA?
The founder Hugh Karp is from the UK. His interest in Bitcoin started casually and soon he was fascinated with the possibilities that cryptocurrency could bring to the world, but he did not know what to do with all the new info influx on his mind. After a while, he discovered Ethereum, and then it all made sense.
With years of experience in the traditional insurance industry, Karp decided to apply his knowledge and create an insurance system based on Ethereum smart contracts, with Nexus Mutual being one of the few DAOs to have a link with a legal entity.
According to the founder himself, Ethereum’s flexibility made it possible to use his professional knowledge in the insurance market to do something unique that would make an impact right away.
Nexus Mutual is an answer when it comes to insurance, redefining the use of smart contracts as a guarantee of safety for users. It is especially interesting for those who want insurance based on a cooperation project, sharing both risks and gains, on a platform that operates using Ethereum.
Today Nexus has a product that is already highlighted, the Smart Contract Cover, aiming to cover against hacks or bugs in Ethereum smart contracts. The project has certainly made an impact and shows how the blockchain’s trajectory follows in a path for maturity, both in financial and security terms.