[PRE-ANN] INCHAIN. Ethereum based insurance platform

[Inchain.io]

is it an asset "inchain tokens" which share risks from other assets on ethereum blockchain?

No, inchain tokens provide the rights to vote for investment and other decisions and receive a share of profits earned by the platform.
Bonds are the instrument transferring risks from policyholders to investors. Bond investors receive coupons as a reward for taking risks.

[MoneyJ]

Interesting concept. Hopefully it would materialized so that others may patterned such business model.

[Hhampuz]

So when would the ICO be live, do you expect?

[Sergey_Inchain]

So when would the ICO be live, do you expect?

our ICO taking place in a month or so)

[Hhampuz]

So when would the ICO be live, do you expect?

our ICO taking place in a month or so)

Awesome, Will surely keep a close eye on this one

[republicrypto]

So when would the ICO be live, do you expect?

our ICO taking place in a month or so)

Awesome, Will surely keep a close eye on this one

watching this thread

[len01]

nice project, waiting for update

[Inchain.io]

Interesting concept. Hopefully it would materialized so that others may patterned such business model.

Thanks a lot for this. We believe it can be very useful for many people.

[Mgrover]

will reserve for indian translation

[Sergey_Inchain]

If you need any translation work done dev I will be here.

So will this service be required dev?

Now, we have a core team, but during project progresses we will understand is it enough.

[MyBitcoinPorn]

If you need any translation work done dev I will be here.

So will this service be required dev?

Now, we have a core team, but during project progresses we will understand is it enough.

Oh boy, yet another ICO.

Ready for a big list of questions?

Will the tokens you are offering represent a stake in your company? Will token holders only hold a stake in the smart contract on the network?

How will the 'investment' committee be selected?

What will be the legal entity that enforces investment contracts if companies the portfolio invest in fail to repay?

Who are you, what is your background, where do you live?

Where will your development on the smart contract be based out out?

How will new changes to the smart contract be pushed, will your company hold a key that will let you push security changes?

What benefits does Inchain get for making the smart contract?

Is this considered an investment opportunity and are you advocating for people to invest in your tokens?

Are you raising venture capital to back your company in addition to the ICO? Where would those funds go to? What company, which jurisdiction?

Who the hell is Sergey Primatchik even?

Have Bitcoiners actually met you or your partner in person?

The company receiving funds from the ICO, what is it and where is it?

Will ICO funds be held in an escrow account providing your company actually produces this smart contract?

How are you going to avoid legislation?

[Sergey_Inchain]

Oh boy, yet another ICO.
Ready for a big list of questions?

Thanks you for really good questions!
Could we use your questions to start our FAQ?
Give us pls some time to prepare answers.

[Sergey_Inchain]

Who the hell is Sergey Primatchik even?

So, my name is Sergey Primatchik. I live in Russia, Moscow. I am 40 years old. Last 10 years i act as a project and process manager in IT. I have IT and business education. Last year i put my attention on blockchain technology and it catched my mind. My FB: facebook.com/primatchik, only russian lang))

[Inchain.io]

If you need any translation work done dev I will be here.

Ready for a big list of questions?

Many thanks for your questions, appreciate it.
Please find the answers below.

Will the tokens you are offering represent a stake in your company? Will token holders only hold a stake in the smart contract on the network?

We do not plan to set up a legal entity; therefore, tokens actually do represent a stake in the platform (similar to the DAO concept).
The platform and the Insurance fund are in possession of the token holders.

How will the 'investment' committee be selected?

We plan to include to the Investment committee external advisers, founders and representatives from token holders. The committee will analyse and propose investment allocations and the token holders will approve or reject them.

What will be the legal entity that enforces investment contracts if companies the portfolio invest in fail to repay?

We are thinking about setting up a foundation representing interests of the token holders if there are cases requiring law enforcements.

Who are you, what is your background, where do you live?

I am based in London (UK), I am also a founder of E-Coin/Wirex. Some info in available here https://www.e-coin.io/team
Sergey is based in Moscow (Russia). As an IT specialist by education, Sergey specialises in operational and project management of enterprise IT projects. Actively involved in blockchain technology in 2015, Sergey participated as a consultant in different blockchain-based projects.
Next week we are adding slides with details of the entire team.

Where will your development on the smart contract be based out?

The development team is distributed across UK, USA, Russia and Ukraine.

How will new changes to the smart contract be pushed, will your company hold a key that will let you push security changes?

We are discussing this among the team members and let you know our thoughts shortly. Feel free to make any suggestions.

What benefits does Inchain get for making the smart contract?

The platform receives insurance premium and send it to the Insurance fund. A part of the fund will be invested, any extra income will stay at the fund or distributed to the token holders depending on their votes.

Is this considered an investment opportunity and are you advocating for people to invest in your tokens?

That’s correct, our ICO will take place in a month roughly.

Are you raising venture capital to back your company in addition to the ICO? Where would those funds go to? What company, which jurisdiction?

Not yet, we start operations as a fully blockchain-based service without a legal entity.
A part of the funds raised will be spent on developments, the rest goes to the Insurance fund directly.

Have Bitcoiners actually met you or your partner in person?

E-Coin and Wirex have been operational for almost two years, we attend bitcoin and blockchain conferences and meetups on a regular basis.

The company receiving funds from the ICO, what is it and where is it?

As I mentioned above there is no legal entity. Once we made a decision regarding the foundation, we announce the jurisdiction and other details.

Will ICO funds be held in an escrow account providing your company actually produces this smart contract?

Yes the funds will be held in an escrow accounts. Once we raised a minimal fundraising goal, a part of the funds will be spent on platform developments, the second part forms the Insurance fund.

How are you going to avoid legislation?

As we do not have a legal entity, we are not regulated. However, we might establish a company in the future if token holders vote for this. This would also mean that the platform has to be fully regulated. On the other hand, it would create opportunities to insure non-crypto assets and risks.

[MoneyJ]

OP is short of information . It is quite interesting how insurance business would be on a blockchain.

[Sergey_Inchain]

OP is short of information . It is quite interesting how insurance business would be on a blockchain.

We working on more detailed info about project and will publish it soon. Keep an eye on OP 

[Inchain.io]

Soon we will add slides, infographics and case studies. Nonetheless, it would be great if you can start posting your questions, comments and suggestions, so we can take those into account building the platform.

Guys

Let's have a look at a few use cases.
Obviously Inchain creates a variety of different hedging and investment strategies.
So we start with this one (all figures are for illustrative purposes only).

Inputs.
A Trader A has got 10BTC as average balance of his trading account at an Exchange B.
He decides to insure 10BTC. B is a quite respected exchange that has never been compromised and has been up and running for 5 years.
So B has the highest ranking at Inchain.
Thus Inchain offers a 3% premium for the insurance policy, which is accepted by A.
Simultaneously Inchain issues bonds with the highest ranking and a 8% coupon rate per annum.
A decides to invest 10BTC in these bonds.
Total investments 10x3%+10=10.3BTC

Now we have two scenarios.

Scenario 1.
B has not been compromised.
A receives face value of 10BTC +0.8BTC coupon.
Total income is 0.5BTC

Scenario 2.
Sadly B has been compromised.
During first days after the announcement it is still unclear if B has enough funds to reimburse all its accountholders.
Lets assume that the probability of the full reimbursement is 80%.
Prices of bonds linked to B have dropped by 20%.
A decides to sell his bonds with 20% discount.

Scenario 2.1
B is able to reimburse all accountholders. No insurance payments occur.
Total income is 10x80%-10.3=-2.3BTC
Scenario 2.2
B goes bust.
B receives 10BTC from Inchain.
Total income is 10+8-10.3-10=-2.3BTC

Please note that in scenarios 2.1 and 2.2 we assume that A actually has 10BTC at his account with B at the moment when B announced a hack.
In reality Inchain will not be checking the balance of policyholders at the moment when an exchange or wallet are being compromised.
This means that even if the balance of the account is zero and the exchange is able to recover nothing, the policyholder still receives the amount that he insured.
On the other hand, even if the balance is higher than 10BTC, only 10BTC will be paid.

[MyBitcoinPorn]

If you need any translation work done dev I will be here.

Ready for a big list of questions?

Many thanks for your questions, appreciate it.
Please find the answers below.

Will the tokens you are offering represent a stake in your company? Will token holders only hold a stake in the smart contract on the network?

We do not plan to set up a legal entity; therefore, tokens actually do represent a stake in the platform (similar to the DAO concept).
The platform and the Insurance fund are in possession of the token holders.

How will the 'investment' committee be selected?

We plan to include to the Investment committee external advisers, founders and representatives from token holders. The committee will analyse and propose investment allocations and the token holders will approve or reject them.

What will be the legal entity that enforces investment contracts if companies the portfolio invest in fail to repay?

We are thinking about setting up a foundation representing interests of the token holders if there are cases requiring law enforcements.

Who are you, what is your background, where do you live?

I am based in London (UK), I am also a founder of E-Coin/Wirex. Some info in available here https://www.e-coin.io/team
Sergey is based in Moscow (Russia). As an IT specialist by education, Sergey specialises in operational and project management of enterprise IT projects. Actively involved in blockchain technology in 2015, Sergey participated as a consultant in different blockchain-based projects.
Next week we are adding slides with details of the entire team.

Where will your development on the smart contract be based out?

The development team is distributed across UK, USA, Russia and Ukraine.

How will new changes to the smart contract be pushed, will your company hold a key that will let you push security changes?

We are discussing this among the team members and let you know our thoughts shortly. Feel free to make any suggestions.

What benefits does Inchain get for making the smart contract?

The platform receives insurance premium and send it to the Insurance fund. A part of the fund will be invested, any extra income will stay at the fund or distributed to the token holders depending on their votes.

Is this considered an investment opportunity and are you advocating for people to invest in your tokens?

That’s correct, our ICO will take place in a month roughly.

Are you raising venture capital to back your company in addition to the ICO? Where would those funds go to? What company, which jurisdiction?

Not yet, we start operations as a fully blockchain-based service without a legal entity.
A part of the funds raised will be spent on developments, the rest goes to the Insurance fund directly.

Have Bitcoiners actually met you or your partner in person?

E-Coin and Wirex have been operational for almost two years, we attend bitcoin and blockchain conferences and meetups on a regular basis.

The company receiving funds from the ICO, what is it and where is it?

As I mentioned above there is no legal entity. Once we made a decision regarding the foundation, we announce the jurisdiction and other details.

Will ICO funds be held in an escrow account providing your company actually produces this smart contract?

Yes the funds will be held in an escrow accounts. Once we raised a minimal fundraising goal, a part of the funds will be spent on platform developments, the second part forms the Insurance fund.

How are you going to avoid legislation?

As we do not have a legal entity, we are not regulated. However, we might establish a company in the future if token holders vote for this. This would also mean that the platform has to be fully regulated. On the other hand, it would create opportunities to insure non-crypto assets and risks.

Surprisingly detailed response, thank you.

[Inchain.io]

How will new changes to the smart contract be pushed, will your company hold a key that will let you push security changes?

We have learnt from the DAO hack and other similar cases. We also understand that the technology is very young and not developed enough yet.

In order to avoid negative incidents and keep the DAO consensus at the core of the platform, we have decided to use another concept. The idea is to apply a multy-sig method where the most important transactions such as fund management and smart contract upgrades are to be signed by both a smart contract and the Investment committee.  

People are not able to initiate a transaction without a smart-contract and the smart contract can’t process the transaction if it is not signed by the committee. This approach creates an additional security layer. Furthermore, all contracts will be audited by independent experts before their deployment.

When we see that the technology becomes mature enough to exclude people from the workflow, we will certainly do so.

[cyberhacker]

Hi dev,

any interest in listing in http://btc12.com, which is oriented to Chinese investors who has no access to details about newest crowd sale opportunities.

the blog has already get some viral effect among them.