AiGang 101 – Insurance for the Internet of Things
With the advancement and development of the blockchain technology, it is only obvious for the technology surrounding the Internet of Things develop as well. Just when the consumers think the blockchain technology has achieved all that it could have, one or the other advancement blows everybody’s mind. One such development is the concept of digital autonomous insurance brought forward by AiGang.
What is AiGang?
The AiGang network focuses on providing insurance to the Internet of Things ecosystem via the employment of smart contracts and Decentralised Autonomous Organisation (DAO). Utilising the AIX token, AiGang aims to automate—remove any third party from—the insurance industry through the popularity-gaining platform of IoT.
The network claims to provide an autonomous insurance system which makes use of the data collected by the IoT devices collected via drones, cameras, and sensors and uses that data to calculate insurance.
The AiGang network has been developed on the Ethereum platform and uses the IoT devices and smart contracts to provide users with insurance depending on the observed real-time data.
How does AiGang work?
AiGang proposes to use the combined data from a crowd (primarily including subject experts such as insurance enthusiasts to make predictions and insurance pools based on a set of said predictions. These predictions, as the network claims, will then be used to measure insurance risks and develop algorithms capable of pricing out the premiums and predicting profits.
The AiGang network aims at using the smart contracts that will enable all smart devices to connect to the insurance policies. That is to say that anyone and everyone can participate in the network by investing and/or getting insured.
The idea behind using smart contracts is to eliminate any and all intermediaries. Through their Android and iOS compatible application, it becomes pretty simple to access the AiGang Digital Insurance. A user just needs to download the app and then fill his/her Ethereum wallet to get the insurance.
The insurers will have the ability to create tokens predicting the likelihood of an event(s). The price that will emerge subsequently will be used by the insurers to evaluate a particular insurance product accurately. To cite an example, the Prediction Markets (PMs) will be seen making predictions about Capital PM i.e. the capital required to support a pool; the Premium PMs will make predictions about the size of the premium required by the pool; the Profitability PMs will predict profitability metric of a pool.
Based on the blockchain and making use of the smart contracts, the entire market operation will be independent, decentralised, and diverse. The members will earn AiGang tokens for their prediction accuracy.
The AiGang Token
The AiGang cryptocurrency will work something like this.
Each member will receive the AiGang AIX token reward in return for taking either a bear or a bull stand on a particular insurance market and/or product.
Utilising a proof-of-stake algorithm, AiGang can store a reputation score for each member on its blockchain. For this, in addition to the token ownership, prediction market, insurance pool mechanics, and the users’ proportion of the total number of AIX token will be taken into account.
Each member can earn a rank and have their prediction mean more by showcasing a successful track record. The rewards for each member will be calculated by the system, and the value of the reward will be determined by the prediction market.
Along with predictions, this token will permit members to submit suggestions for product improvement.
Key Features of AiGang
As put by the AiGang team, “The aim of AiGang is to build a DAO Insurance Protocol on a blockchain which would enable the community, companies, developers build insurance prediction markets and insurance products themselves using our infrastructure. That’s how we see the future of blockchain insurance protocol.”
The rising popularity of the AiGang blockchain protocol can be attributed to the following features:
- Digital Insurance for IoT: The AiGang protocol is changing the game by providing not only a digital but a decentralised insurance for all types of smart devices.
- Smart Policy: The network is being operated on a smart policy which is capable of automatically implementing imperative operations including handling of insurance claims, issuing new policies, etc.
- Invest and Benefit: AiGang employs a P2P network where members get a chance to invest while being insured simultaneously.
- Risk Premium: AiGang permits the product insurance to be bundled with the Internet of Things devices and employs smart contract algorithms to authenticate the acceptance.
- Customized Insurance: AiGang does not have any long-term contracts which mean that the user gets to decide the terms, price, and the duration of the insurance of their IoT device(s).
- Instant Pay-outs: AiGang is quick to initiate its pay-outs which a user can use for his purposes whatsoever.
Vital Information about AiGang—Summed Up
- Coin Name- AiGang (AIX)
- Total Supply- 45000 ETH
- Market Cap- 45000 ETH
- The coin was released in January 2018 at the rate of $3.82 and has recorded an all-time-high within a month @$5.47.
The Bottom Line—What problems can AiGang solve?
AiGang has brought forward an incredible concept in a time of pervasive connectedness. Multiple surveys and studies conducted have revealed that over 73% of people do not trust their insurers.
AiGang aims to change this scenario and make an attempt at mitigating insurance fraud by automating the process of insurance claims. This will help particularly in cases of earthquakes and other natural calamities where the automated claim would be made possible through the blockchain could exclude the need for individual evaluation and considerably reduce the settlement time.
Through its platform, the AiGang team puts the prediction market on the blockchain and thus makes it transparent, decentralised, and untampered.
With the prediction of approximately 55 billion IoT devices to be brought within the next eight years and the insurance process getting difficult by the day, the future of AiGang looks promising. Since the smart devices do not require human verification, there is an opportunity for automated insurance products to take centre stage. The AiGang blockchain protocol appears to be a favourable concept especially with their aim of attracting experts on the basis of PMs and growing their network.