Blockchain Can Fix India's Dysfunctional Insurance Scheme

Photo: Coin Telegraph

Blockchain technology in general, and smart contracts in particular, can “unlock the hidden values of legacy digital systems,” according to a report co-authored by representatives of the World Economic Forum and Chainlink.To understand how, look no further than India’s Crop Insurance Scheme. 

In a 40-page white paper released on Wednesday, the Geneva-based organization promotes the importance of interoperability between legacy systems and distributed ledger technologies – but only for specific use cases that are suitable for blockchains.

Although the paper promotes highly technical and abstract solutions for enhancing interoperability between blockchains and legacy systems — which it calls the “interoperability bridge” — it provides a tangible example in the form of India's Crop Insurance Scheme, which was devised in 2016 as a way to provide insurance coverage and financial support to farmers affected by natural disasters.

Issues ranging from transparency and accountability to corruption and information security were all raised by agencies involved in implementing the scheme. The white paper identifies how blockchain-based smart contracts and oracle systems could overcome these challenges.

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