Insurance Coverage for Self-Custody Crypto Wallets: Challenges and Solutions
Brandon Brown, the CEO of Fairside Network, discusses the lack of insurance coverage for self-custody crypto wallets and the challenges in providing such coverage. He points out the difficulties in assessing digital asset risks and the absence of historical loss data as reasons for this lack. To address this issue, Brown suggests limiting the number of times users need to go through KYC procedures as a way to provide insurance coverage while respecting privacy.
Brown acknowledges that existing crypto insurance offerings have flaws and inefficiencies. However, he believes that by adopting proven principles from traditional insurance models, crypto insurers can develop better and more affordable coverage options.
Regarding self-custody assets such as Tokens, NFTs, and real-world assets (RWAs), Brown explains that self-custody means individuals or entities hold their own private keys, giving them full control over their assets. He emphasizes the need for theft protection in self-custody assets, as Blockchain transactions are irreversible and recovery is nearly impossible without the cooperation of the perpetrator.
In terms of bringing personal wallet protection to Web3 wallets and assets, Brown highlights Fairside’s approach of developing advanced risk assessment techniques and focusing on isolated risk. This allows them to spread risk across various wallets and asset types, aligning their incentives with the community and offering real payouts to those who suffer losses.
Brown also comments on the capital inefficiency, instability, and unreasonable premiums of existing crypto insurance offerings. Fairside aims to address these issues by bringing traditional insurance principles on-chain, creating a more efficient and stable system. Their process is streamlined and user-friendly, making it easy to secure protection for self-custodial assets.
Regarding cross-chain protection of assets, Brown states that Fairside is developing solutions that can protect assets across multiple blockchains. They offer comprehensive coverage for all assets in a user’s wallet, regardless of the type of token or blockchain it resides on.
On the topic of privacy and anonymity, Brown assures that Fairside respects users’ privacy and anonymity. They have a permissionless sign-up process and only request KYC details when filing a claim. They limit data collection, employ encryption techniques to protect information, and share collected data solely with trusted Security partners for claim processing.
Lastly, Brown encourages all investors, regardless of their Investment amounts, to protect their assets. Fairside offers coverage that scales with the size of the wallet, making it affordable for everyone. He emphasizes that the risk of theft in the crypto space is real and can happen to anyone, so it’s important to take proactive measures to safeguard investments.
Overall, Brandon Brown highlights the challenges and solutions in providing insurance coverage for self-custody crypto wallets. Fairside Network aims to bridge the gap between traditional insurance and the crypto world, offering reliable and affordable protection for digital assets.
Fairside Network CEO Warns: Crypto Assets Stored in Self-Custody Wallets Vulnerable to Theft
parofix.com
Brandon Brown, the CEO of Fairside Network, discusses the lack of insurance coverage for self-custody crypto wallets and the challenges in providing such coverage. He points out the difficulties in assessing digital asset risks and the absence of historical loss data as reasons for this lack. To address this issue, Brown suggests limiting the number of times users need to go through KYC procedures as a way to provide insurance coverage while respecting privacy.
Brown acknowledges that existing crypto insurance offerings have flaws and inefficiencies. However, he believes that by adopting proven principles from traditional insurance models, crypto insurers can develop better and more affordable coverage options.
Regarding self-custody assets such as Tokens, NFTs, and real-world assets (RWAs), Brown explains that self-custody means individuals or entities hold their own private keys, giving them full control over their assets. He emphasizes the need for theft protection in self-custody assets, as Blockchain transactions are irreversible and recovery is nearly impossible without the cooperation of the perpetrator.
In terms of bringing personal wallet protection to Web3 wallets and assets, Brown highlights Fairside’s approach of developing advanced risk assessment techniques and focusing on isolated risk. This allows them to spread risk across various wallets and asset types, aligning their incentives with the community and offering real payouts to those who suffer losses.
Brown also comments on the capital inefficiency, instability, and unreasonable premiums of existing crypto insurance offerings. Fairside aims to address these issues by bringing traditional insurance principles on-chain, creating a more efficient and stable system. Their process is streamlined and user-friendly, making it easy to secure protection for self-custodial assets.
Regarding cross-chain protection of assets, Brown states that Fairside is developing solutions that can protect assets across multiple blockchains. They offer comprehensive coverage for all assets in a user’s wallet, regardless of the type of token or blockchain it resides on.
On the topic of privacy and anonymity, Brown assures that Fairside respects users’ privacy and anonymity. They have a permissionless sign-up process and only request KYC details when filing a claim. They limit data collection, employ encryption techniques to protect information, and share collected data solely with trusted Security partners for claim processing.
Lastly, Brown encourages all investors, regardless of their Investment amounts, to protect their assets. Fairside offers coverage that scales with the size of the wallet, making it affordable for everyone. He emphasizes that the risk of theft in the crypto space is real and can happen to anyone, so it’s important to take proactive measures to safeguard investments.
Overall, Brandon Brown highlights the challenges and solutions in providing insurance coverage for self-custody crypto wallets. Fairside Network aims to bridge the gap between traditional insurance and the crypto world, offering reliable and affordable protection for digital assets.
Fairside Network CEO Warns: Crypto Assets Stored in Self-Custody Wallets Vulnerable to Theft
parofix.com
