Algorand Blockchain Onboards First Insurtech Use Case; Addressing A $40B Opportunity
- The Algorand blockchain, which currently competes with Ethereum on enterprise solutions, has gotten its first Insurtech use case.
According to a press release on May 20, a firm dubbed ‘Attestiv' whose focus is media validation is set to leverage Algorand for blockchain services.
This milestone presents an opportunity for Algorand and Attestiv to address P&C insurance fraud which costs the U.S $40 billion. Through Algorand's PoS and permissionless ecosystem, Attestiv is optimistic about transforming the insurance industry. Algorand's COO, Sean Ford, confirmed that:
“Attestiv is disrupting the insurance industry by helping organizations of all types build trust and transform their business by leveraging our open, decentralized blockchain.”
Attestiv on Algorand Blockchain
Attestiv's market niche is in media insurance, where the firm leverages emerging tech to enhance efficiency in record keeping and validation. Basically, Attestiv uses AI to validate items such as metadata, sensor data and digital media.
This can be done at the point of capture or through forensic analysis. Notably, the records are tamper-proofed through fingerprints which can then be used to identify alterations or changes to the underlying media.
Algorand's blockchain was, therefore, selected to store the fingerprints and prevent any changes through its immutability aspect. Furthermore, Attestiv notes that the blockchain's security and scalability presents them a favorable cost-structure and opportunity to grow. Attestiv's Nicos Vekiarides echoed:
“We are excited about our new offering and have selected Algorand because of the enterprise-level scalability, security, and economics that meet our customer needs.”
Based on the value proposition by both entities, this collaboration is likely to shape the future of insurtech. The underlying technical agreements can be further improved through smart contract technology. By doing so, Attestiv could generate more complex insurance contracts and secure them within Algorand's blockchain network.