[ANN] [ICO CLOSED] Inchain - insurance for the crypto economy

[Sergey_Inchain]

Are you the owner EQUALlcoin too? you have the same picture with the image Sergey Primachik
https://bitcointalk.org/index.php?topic=1653144.0

Nope, I don't see any Inchain picture there.

[Inchain.io]

- How will Ethereum smart contracts handle Bitcoin bonds and insuranse policies? Ethereum smart contracts can directly control ETH or Ethereum-based tokens only.

Bonds and policies are handled in the Ethereum blockchain only. If the policy in issued for a BTC account then the bond is nominated in BTC.

For such a case, Inchain based on the Ethereum smart contract’s data may initiate a payout from a bitcoin wallet. Every transaction (or a set of transactions) should be signed by a certain number of members of the Insurance committee to go through. These members act as escrows, signing genuine transactions.

[SpacemanOne]

I did my own market analysis (if you are interested I can post the detailed info at some blog later)

Thank you. You really did a good job.
It will greatable if you will post the details as soon as possible.

Let's up spend some time to explore it.

The details are here.

Great analysis, thank you.
You forget about ETH.

No, I did not. As you can see the post title starts with 'BTC crypto exchanges and BTC web wallets market volume'.
There are several reasons.
1. The Ethereum market volume is 5% of the BTC market only. So you can add 5% to the total market and will get the number you need. This is very simple so I didn't include it in my analysis.
2. My total market estimation is rough and may differ from the real situation for about 10% or even more. So the ETH market volume is included in the possible deviation.
3. The whole Ethereum market (5%) won't substantially influence on the InChain profits estimation. So it can be omitted.

[SpacemanOne]

In the model, the list of exchanges pointed as an example.

As I can see now the whole model is an example that could possible be implemented and could possibly not. Excuse me, I thought it was a real model, not an example. Why? Maybe because there were no writings like 'This is an example', 'Do not take it serious' or 'our future financial model is not defined yet', 'this is just a concept', etc.
I've read your blog post carefully, examined all the details, tried to verify your numbers. I spent some time studying it. And now it turns out this is just an example and your real financial model may be absolutely different.
You can consider me as your first fooled potential investor.
The only thing we know for sure about the model is that there will be some insurance for exchanges and web wallets. Please correct me if I'm wrong.

Hi, thank for the opinion.
You are wrong. This model demonstrates operational financial scheme of Inchain. As I wrote, the list of exchanges is an example, to understand what exchanges & web-wallets may participate in insurance process we need to finalise risk model and check every exchange & web-wallet to assess their risk rating. Only after that it will possible to decide which exchanges or web-wallets have enough risk rating to participate in Inchain insurance.

Actually, I expected for some excuses for not warning the community that you financial model is just an example and the real model will be different. You wrote that your exchanges list is an example in 30 days after the post was published. No warnings in the blog text.
Would you show this financial model to a venture investor? I doubt. Even if you did you wouldn't get the money.
So why do you show it to the community? Because you think they won't read it or will just trust you without any verifications.

If you say I'm wrong please tell me where I'm wrong.
All the numbers from your financial model are not real and will be different in the real product.
Number of exchanges - not real.
Each exchange share - not real.
Insurance premium - not real.
Coupon rate - not real.
Total amount insured - not real.
Thank you for mentioning about your survey and saying that conditions are 'editable'.

So if all the above numbers are just an example why do finalize your post with words 'As you can see Inchain earns in each case'? The conclusion is based on the example numbers that are far from reality. So you should write 'As you can see from our example InChain can be profitable but only with the numbers we gave you. They will be different in reality'. That would be fare at least.

Are you sure there will be bonds in your real financial model?
Are you ready to give me 100 BTC if there will be no bonds in your real financial model?

[SpacemanOne]

- How will Ethereum smart contracts handle Bitcoin bonds and insuranse policies? Ethereum smart contracts can directly control ETH or Ethereum-based tokens only.

Bonds and policies are handled in the Ethereum blockchain only. If the policy in issued for a BTC account then the bond is nominated in BTC.

For such a case, Inchain based on the Ethereum smart contract’s data may initiate a payout from a bitcoin wallet. Every transaction (or a set of transactions) should be signed by a certain number of members of the Insurance committee to go through. These members act as escrows, signing genuine transactions.

So the BTC insurance or bond payments will be performed manually, right? Smart contract state will change and people from the committee will see it and initiate the payments? That will require some centralized servers watching ethereum smart contract states.
How technically will smart contract's data initiate a BTC payout? Smart contracts don't have any API's. How will you process thousands of BTC coupon payments after the bonds expiration? Manually? Automatically? If automatically then it would require some centralized servers too, right?
So smart contracts will serve as an accounting system only for BTC bonds and insurances? It means the InChain system for BTC market can be designed on almost any blockchain, right?

[electronicash]

I just received an email regarding Inchain, so its now final the ICO starts on 26th of October, its a good date. Just in time when the rest of the dumpers of ICONOMI get to invest on Inchain   Hope to see the target 5M will be achieved in 4 weeks.

[Thefrolly]

hey, i just turned full member, will the guy responsible for the signature campain update it or do i have to do anything?

[xtyling]

Still havent got my column accepted in the fb bounty :/

[Sergey_Inchain]

hey, i just turned full member, will the guy responsible for the signature campain update it or do i have to do anything?

Will be updated today, you don't need to do anything. Thank for info.

[Sergey_Inchain]

Still havent got my column accepted in the fb bounty :/

Send me a link to your FB profile

[nixoid]

I'd like to explain bitcoin transaction signing in more detail.

1. Bitcoin balance will be secured by bitcoin multisig. 4 of 6 or something close to that.  We will post a detailed security model with risk analysis once we get to implementation. Here is an example of similar work of ours:
https://ambisafe.atlassian.net/wiki/display/AS/Wallet4

2. Ethereum contract will be aware of Bitcoin wallet balance.
3. Once event occurs that should trigger BTC transaction, Ethereum wallet will create transaction as an event, with the BTC address as one of the ethereum event parameters. In this way we are creating a "master record" of what should actually happen.

4. Our multisig wallet server software will be listening to the Ethereum contract events. Once Bitcoin-related event occurs, unsigned bitcoin transaction will be created. All signatories will get an email notification that something is waiting for their signature.

5. Every insurance committee member will sign in and sign transaction sequentially.

6. Once transaction has been posted to Bitcoin network, we can provide a cryptographic proof to Ethereum smart contract that transaction has been executed. Similar thing is already implemented in BTCRelay (https://github.com/ethereum/btcrelay)

We can semi-automate this schema by involving several bitcoin security companies. I'll explain other options in more detail tomorrow.

[Sergey_Inchain]

Signature campaign updated: https://docs.google.com/spreadsheets/d/1ZDwUJeTStAzD4QtxM2gqNSaXm5LgMRgKUU0OXs9vEBI

[Sergey_Inchain]

FB campaign updated: https://docs.google.com/spreadsheets/d/1ms9zLtYG6eprr4G9bTXtb2kJ6OSivxONgpZEZ9pFsVM

[Sergey_Inchain]

Translation campaign updated: https://docs.google.com/spreadsheets/d/1upkIGm3giNKmke90TrKrtyqEkakjPnb0LPnoQhLVCvk

[xtyling]

FB campaign updated: https://docs.google.com/spreadsheets/d/1ms9zLtYG6eprr4G9bTXtb2kJ6OSivxONgpZEZ9pFsVM

Still havent got my column accepted in the fb bounty :/

Send me a link to your FB profile

Update got it

[Jcga]

Thx Serguey for the bounty campaigns updates

[losoya]

twitter campaign no update?

[polick]

Whats the minimum investment or the funds will be returned to contributors?

[Sergey_Inchain]

The twitter list has not been updated?

today

[Sergey_Inchain]

Nice project!

Thank you)