Mattereum, the company founded by the launch release coordinator of the blockchain platform Ethereum, Vinay Gupta, with co-founder Rob Knight, and InsurePal, the first decentralised social proof insurance service, have today announced the establishment of the Identity Insurance Consortium (IIC).
Mr Gupta announced the launch of the consortium at a blockchain event in the Hague. Recognising the need for identity assurance for blockchain transactions, Mattereum CEO Vinay Gupta said: “Mattereum is bringing legally enforceable blockchain based smart contracts into wider use in an environment in which identity fraud is still a concern. Insurance-based identity protection is an important tool in neutralising this threat so that trades on the blockchain can become more widely adopted.”
Both IIC founding members share a vision of a future blockchain economy, consisting of three pillars: blockchain insurance, a dispute resolution body and identity sovereign assurers. Working collectively they form the decentralised infrastructure needed to facilitate trust between members of the blockchain community when transacting products and services.
This matter of identity and trust is arguably the foundation stone of digital currencies – without rock solid ID, companies and many people will be wary of making large payment transactions using new crypto-currencies.
As InsurePal CEO Matt Peterman explained: “A seller or purchaser’s proof of identity can be lodged with an insurer who can then issue a policy against which any transaction can be linked. This is safer and more convenient than providing sensitive identity documents each time an individual or company conducts business on the blockchain.”
Christopher Wray, Mattereum Chief Legal Officer, added: “The existence of identity insurance means that disputes that could arise will be substantive ones related to legal obligations of a contract rather than the more basic issue of identity fraud. This leaves Mattereum free to focus our energies and resources on producing legal texts and developing their digital equivalents for our clients and their customers, who can be more confident of a speedy and efficient legal process even if a dispute arises.”
The IIC will develop identity insurance solutions and bring identity insurance products to market through an ecosystem of providers who will act collectively as the guarantors of identity for all blockchain transactions and trades by those insured through the consortium and its members. Organisations in the insurance sector and those already involved in blockchain transactions are invited to become members of the Identity Insurance Consortium and contribute to its development.
A membership form is available online at https://identityinsurance.org/#become-member.