SEOUL, South Korea--(BUSINESS WIRE)--At the 2018 TOKENSKY Blockchain Conference Seoul Session, which was held on March 14-15, 2018, Jin Hui, CEO of ShineChain, delivered a speech to elaborate on the ambitious vision of the company as a decentralized and blockchain-based mutual insurance platform.
In his speech, Jin Hui pointed out that there have been various pain points in the traditional insurance industry such as high premium rates, low transparency, inflation, insurance fraud and risks of privacy protection, which can be addressed with the decentralized blockchain technology, which may also completely renovate the underlying mechanism of the industry. For this reason, the ShineChain Project was established to apply the blockchain technology in the insurance industry.
Insurance and blockchain essentially share high likeness, for they are both based on the assembly and synergy of individuals. Therefore, the various problems faced by traditional commercial insurance companies can all be effectively addressed by integrating the blockchain technology and issuing Tokens. In ShineChain, as the data are displayed on the blockchain, the project operation can be utterly transparent. For instance, every stakeholder of a project can check to whom the mutual insurance capital is transferred, or whether the product and operation comply with community regulations and the majority’s fundamental benefits.
In addition, ShineChain provides users a smart contract, i.e., all the operations during the whole process are automatically executed according to the contract and even the internal staff cannot tamper data or embezzle community asset. The digital asset SHE will be the basic circulation carrier in the ShineChain mutual insurance ecosystem, ensuring that the transactions, value shifts and information transfers are conducted simultaneously and compliantly.
In centralized insurance, when users buy insurance products or services, they only establish relations with the insurer. Users seldom have interactions or connections with each other as there is no such community connecting them. However, in decentralized blockchain-based mutual insurance, different users aggregate into a community due to their purchase of products and services of homogeneous risk management. Users can participate in the iteration of technology, product innovation, content provision, operation and maintenance, cultural development, publicity and promotion of the community. Since Token (SHE) can link each other in the community, users are not only the investor and guarantee, but also a participant, operator and promoter, which means they are the real owner of the whole community.
ShineChain also brings in the insurance trust mechanism for the benefit of the public. As a decentralized mutual insurance community, ShineChain can effectively address the multiple pain points with its unique features of decentralization, transparency, traceability and tamper-resistance.
Globalization – ShineChain caters to global users and its digital asset SHE as the basic circulation carrier allows global people to engage in this mutual insurance ecosystem, facilitate global resource consolidation and form a large-scale mutual insurance network.
Decentralization – ShineChain has no centralized server. Instead, the whole process is conducted on the blockchain, which is devoid of malicious hacking, system crash and other human risks.
Public Benefits – The traditional centralized mode requires huge selling and operation cost, which results in high premium rates. One example is commercial insurance which in practice is only suitable for the middle class due to its high rates. In contrast, ShineChain, with its distributed data network, avoids the huge operational cost. It is a product for the benefit of the public in a real sense, offering a lifetime guarantee once users join the community. In addition, getting high-value insurance products with minimal SHE is something traditional insurance dares not to offer.
ShineChain wins trust with technology. On the ShineChain platform, the whole operation is based on smart contract, thus eliminating the possibility of information leakage and tempering, and providing more privacy protection. Besides, the traceable and temper-resistant features of blockchain make every operation transparent and eradicate cheating and insurance fraud incidents.
As blockchain technology gained popularity in the past two years, any project labeled with “blockchain” can draw much attention. Nevertheless, very few projects are put into practice. ShineChain team has clear project planning and executing processes to carry it through.
The team started in April 2017 to survey on the feasibility of ShineChain. So far in the first phase, air-sea-land accident insurance, serious disease mutual insurance and third-party supplemental car insurance have been planned and will be officially launched in February 2018 when the mutual insurance system test is completed. Meanwhile, access to public blockchain and other commercial applications will open by then. As the project advances, ShineChain will attract more insurance communities to join in and take charge of one of the insurance products.
More and more people are beginning to get familiar with blockchain, but more focused on the technological advantages. What ShineChain is going to do is come up with an actual product and solve the problems faced by the current insurance industry. ShineChain aims to transform the global insurance model with technology revolution, build up the global blockchain-based mutual insurance ecosystem, and ultimately make more people benefit from insurance.