NEW YORK--(BUSINESS WIRE)--Today Blockdaemon, the world’s largest blockchain infrastructure company for node management and staking, announced an innovative, industry-first insurance policy to protect its customers—including Fortune 500 enterprises, banks, custodians and trusts—from the downside of blockchain staking slashing events. Blockdaemon worked with Marsh, the world’s leading insurance broker and risk advisor, to obtain this policy.
“This new insurance policy is first of its kind and is designed to give Blockdaemon customers comfort that there is financial backing for a system failure or security failure that impacts them,” said Konstantin Richter, CEO and Founder, Blockdaemon. “Already our experience running nodes on every major network has led us to develop market-leading, enterprise-standard risk mitigation, and this is one more assurance to our customers that trust us with their blockchain needs.”
Slashing is a mechanism built into proof-of-stake blockchain protocols to combat validator misbehavior and promote node security, availability, and network participation. If a validator shows harmful behavior, a percentage of their bonded/staked tokens will get slashed, or lost.
The new insurance policy protects Blockdaemon customers if Blockdaemon experiences a system failure or security failure that causes:
- A slashing event, where contractual penalties are imposed or seized by a blockchain network because of a protocol violation based on the availability of Blockdaemon’s services; or
- A double-signing event, where the validation of two or more different blocks at the same section of a particular blockchain network results in liability.
As part of the offering, Blockdaemon has designed a claims process where it will work with the insurance carrier to determine the cause and amount of loss in a quick, streamlined fashion.
Blockdaemon’s Four Layers of Risk Mitigation
This innovative insurance offering reinforces Blockdaemon’s security first approach and guarantees institutional-grade security for Blockdaemon’s clients. It is a key pillar on which institutional trust is built and this trust in Blockdaemon is embodied by world-leading custodians, exchanges and financial institutions, all of whom rely on Blockdaemon’s unparalleled security standards on a daily basis.
Blockdaemon’s four layers of risk mitigation were built to avoid downtime and protect Blockdaemon clients from any risk of loss. Insuring clients against slashing risks is a core layer of this risk mitigation strategy. This industry-first guarantee furthers Blockdaemon’s commitment to constantly improve and innovate the company’s risk mitigation practices.
Blockdaemon currently caters to over 50 blockchain protocols. Of these, Blockdaemon services over 25 cutting edge proof-of-stake networks. These lay at the frontier of decentralized technology and finance. With so many protocols under management, Blockdaemon’s number one priority is to ensure clients are totally protected across the board. With this announcement, Blockdaemon’s commitment to total client protection is reinforced even further.
Blockdaemon is the leading independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Supporting 50+ cutting edge blockchain networks in the cloud and on bare metal servers globally, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders to blockchains. We power the blockchain economy by simplifying the process of deploying nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralization and auto-healing of nodes. For more information, please visit https://blockdaemon.com/.