Seeking to employ the advantages of the blockchain to disrupt the insurance industry, Vernam is having a crowdsale to raise funds to implement its grand vision in the European Union. As a first-mover using blockchain technology in the industry, Vernam is positioning itself as a platform that will give users greater options and benefits compared to traditional methods of buying or selling insurance. Though at first the platform will focus on Europe, its progress — and those of similar projects globally — could be a harbinger for things to come to other parts of the world, including the United States. The blockchain revolution will be so vast and disruptive that within a few years no nation will be left unaffected.
The Vernam platform will run on top of the Ethereum blockchain. The Ethereum blockchain is a second-generation blockchain with a vast and growing community of users and developers. As more decentralized applications (Dapps) such as Vernam build on top of the blockchain, and as the number of its users swells, Ethereum is continuously being upgraded to meet the demands of the market. For Vernam, Ethereum provides security and smart contract capabilities, thus allowing transactions to take place between users without the need for brokers or other third parties. Moreover, the immutable nature of transactions on the blockchain means that they cannot be manipulated or reversed once the parties have authorized a transaction, an appealing feature that deters fraud. Given that Vernam aims to be the first zero percent commission insurance platform, Ethereum is the ideal blockchain on which to build. Besides auto insurance, Vernam will be a platform to buy and sell life, health, travel, and other types of insurance.
Using the blockchain, Vernam will save consumers the cost of intermediaries that are paid high commission and add nothing to the product. Instead, the platform will reward buyers with VRN tokens, which are the native tokens of the platform. The incentivizing of buyers with rewards will encourage them to use the platform, in turn attracting insurance providers to a growing ecosystem that rewards all parties. Though VRN tokens, which are ERC20 compatible, are not required for transacting on the platform, all transactions will involve the use of VRN tokens as a means of settlement. Another cost-saving service provided by the platform is the ability of buyers to decide the terms they want on a plan and initiate a reverse-bidding process whereby providers can compete with one another to win the customer.
The Vernam crowdsale is taking place from May 8, 2018 to June 18, 2018, according to the whitepaper. In total, no more than 1,000,000,000 VRN will be minted. 15 percent of the tokens will be allocated to the founders, with an 18 month vesting period to ensure commitment to the project. Cryptocurrency enthusiasts interested in a bold insurance project with the potential to disrupt its industry may find this platform appealing.
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