Web3 Security

I’ve got a Web3 security related question: Why isn’t onchain insurance more popular in Web3?

• Web3 Researcher • @ uni for econ & crypto • Boys Club & SheFi member • FID 2768 • bonfire.xyz/NancyARubel

Great question! Are you strictly referring to premiums and claims being paid on-chain or were you also referring to parametric insurance where the claims are paid out automatically based on an oracle?

I’m referring to any type of onchain insurance, really, so I’m also referring to parametric insurance. I wasn’t aware parametric insurance existed in the Web3 space yet

It exists. Our friends at Etherisc have been doing it for certain types of insurance for a long time now. Examples where this works well are crop insurance and travel insurance. However, when it comes to web3 hack insurance there are some things that make parametric insurance more difficult.

One important example is the fact that funds are sometimes fully or partially returned by the hacker in exchange for a bounty or due to the fact that they hacker is doxxed by someone like Hypernative or Chainalysis to the authorities after a forensic investigation.

What are the things that make parametric insurance more difficult? I’m assuming that the type of chain affects the complexity of the smart contracts