The rough concept is great! Yes, I want insurance! Not sure yet, if I will invest in this ico. Depends on answers by devs.
Thank you for your opinion about Inchain concept)
Seriously. After all the scams in this forum, decloud etc. you ought to make a video. We don't care if you don't have great ambient. Sit in front of a clean wall, that suffices. Use a notebook or even android phone. Then make a google hangout and answer some questions. That should suffice.
Agree, the video will be published soon) And thank for an example and advice.
Next week we are going to make a google hangout. Tuesday at 22:00 Moscow time. The link will be published here, in FB, slack, twitter.
So people could claim a high balance, pay a premium and then hope the exchange gets hacked?
Or worse... As an insider of the exchange...
1) Pay a high premium for BTC you don't have. Make many anonymous accounts and premiums.
2) Hack the exchange.
3) Profit twice.
Yes, fraud is possible. But, what exchanges wanna be hacked? Security is their main competitive advantage. Also, as we discussed here some times ago to prevent cases like you described can be used follows things:
There can be some different solutions:
1) we can use some KYC service to stop insurance spam
2) we can restrict max insured balance to minimise a potential damage if some of the policies are an abuse
3) we can stop to issue insurance policies after the first minimal signal about hack is received
4)
Another way which would make it harder to abuse would be to put a small delay between the time of purchase and the time the coverage sets in.
Maybe a 24 hour window from the insurance is purchased until a claim can be made. It would give at least give you a chance to spot any anomalies. Perhaps even alert exchange.
Sure it would still be possible to get around but every little bit helps.
5) we wait from the community suggestions about other ways to solve this problem
any suggestions?
And yesterday we got an agreement from Martin Galas (look the Team on our website) to participate in Inchain as an insurance business advisor. So we are waiting he makes our insurance model more fraud resistant.
if the exchange does not recover the loss within a certain period of time, Inchain will do it itself and the user would have to transfer the debt to Inchain, which will be dealing with the exchange afterwards.
What period of time exactly? Can you fix that value please? In a legally binding way, not as a forum post? Otherwise it could be 50 years.
For now we think the cooling period must not be more than 1 month. And this is an open info and it will in the Inchain insurance terms of course.
Third, Inchain intends do not insure doubtful exchanges/web-wallets.
Will you specify criteria for that?
Yes, we intend to rate every exchange and depends on their risk rating they can or can not be insured by Inchain.
This info will be public. Some evident criteria for rating:
- How long the service is operational
- If it was compromised previously
- Security audit results
- Multi-Sig & Hot Wallets/ 2Factor
