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Home Latest News Blockchain WEF says blockchain can fix India’s dysfunctional insurance scheme

WEF says blockchain can fix India’s dysfunctional insurance scheme

Blockchain technology and smart contracts can “unlock the hidden values of legacy digital systems,” according to a report co-authored by representatives of the World Economic Forum and Chainlink.

According to cointelegraph, 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 particular use cases that are acceptable for blockchains.

“Once readers have already established that blockchain is desirable for their specific use case and business processes, this paper aims to spotlight the role of blockchain, smart contracts and oracles in accelerating the automation of such processes.”

However, the paper promotes highly technical and abstract solutions for increasing 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 determines how blockchain-based smart contracts and oracle systems could overcome these challenges.

The paper reads:

“The crop insurance programme serves as an apt case to highlight the current deficiencies most legacy systems face when dealing with multiparty business processes.”

It also added that: “If an organization’s objective is to automate business processes in a decentralized and disintermediated manner for various reasons, then a blockchain‑based architecture becomes imperative.

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