SmartContract is a San Francisco based startup that is harnessing blockchain technology to create self verifying contracts.
Founded in 2014, SmartContract enables easy-to-use, secure and highly auditable connectivity between blockchain initiatives such as Ethereum or Bitcoin, and the existing data sources or internal systems that smart contracts need to become immediately useful.
Built on the same principles and infrastructure that allows Bitcoin to fight payments fraud, smart contracts are self-executing agreements, stored on the blockchain upon which exists multiple validation points. These blockchain-based contracts are therefore capable of self-verifying their own conditions and contractual agreements, whilst simultaneously remaining tamper resistant due to the lack of a single point of failure.
Essentially, SmartContract’s hypothesis is that the principles upon which blockchain technology is based makes it very applicable in the insurance sector due to its ability to validate external events and process transactions seamlessly. Furthermore, several use cases are already under development as insurers jostle to benefit from the efficiencies associated with servicing a fully automated smart contract that is validated through multiple data points.
Essentially, although Blockchain offers a permanence that was once only possible though paper trails and trusted authorities, startups engaging blockchain as a core ingredient in their offering will need to tread carefully so as to avoid the fate of other blockchain based startups such as Mt Gox who expanded too quickly and exposed themselves to cyber attacks exploiting weaknesses in blockchain’s early stage infrastructure.