The global financial system with the centralized ecosystem has been a great concern for the individual as well as organizations. In fact, the financial impact of the ongoing COVID-19 situation certainly scored higher than the old financial crises.
While financial regulators of some of the biggest countries have employed effective measures, whether or not these measures are really crisis-proof for centralized financial institutions remained a mystery.
Considering the various networks of middlemen existing within the current financial ecosystem, one would easily notice how palatable and susceptible the sector is to hackers and other actors which pose great security threats. With cybercriminals targeting the industry 300 times more than any other sector, financial intermediaries such as money transfers and exchanges put customers' funds through a network of criminal-infested channels.
Over a few decades, classical insurance institutions have garnered the disrespect of potential customers. As much as insurance services seem to look indispensable, issues regarding mismanagement, economic instability, lack of trust as well as excessive politicization have brought the industry to a point where investors now look forward to having a better system.
Insurance analyser (IA) reports that many traditional insurance companies refuse to own up to responsibilities and promises. This is particularly possible to perpetuate due to the unavailability of decentralization policies and peer-to-peer customer relationships as offered by their blockchain counterparts.
Similarly, itpoportal reports that current classical insurance's growth has slumped by more than 90% with the last five years. For instance, in 2006, the sector recorded a mere 12.5% growth and the rate fell dramatically in the following years, touching around 1% in 2010. However, the industry recorded little success later. In 2018, S&P reported that the annual growth rate had risen to about 3-5%.
This goes contrary to popular crypto exchange, Coinbase's opinion on how insurers should better treat their customers:
"Companies should NOT promise preferential status to specific customers on policies that are meant to cover all customers. This is commonly known as First Loss Payee status on a specific policy and it means that a specific customer gets preference for payouts under the policy. While we firmly believe that the future of cryptocurrency insurance is per-customer policies (see more on that below), we do not believe that assigning first loss payee status on what should be a policy meant to benefit all customers is the right way to get there."
Therefore, a wave of crypto startups has washed up on the shores of the financial industry in the last couple of years. The industry big boys, aka banks and exchanges, which have seemed invincible up till now are being challenged to a new world of totally visible and completely decentralized business ideas.
Now, there are numerous crypto startups which are racing to take advantage of the flaws within classical insurance bodies and with the existing global financial ecosystem which contributes to numerous inequalities. These startups have recognized the need for a better financial solution.
The growth and developments already recorded on the blockchain have evidently outpaced the underlying technology itself and the scale of further innovative inclusions is impossible to evaluate. Considering the security aspect of the blockchain technology, marketplaces and platforms like cryptocurrency exchanges acting as the reservoir for storage of cryptocurrencies have, unfortunately, become the target for many astute and nefarious "behind-the-scenes" players (hackers) aiming to find a gold mine. However, with an ever-increasing market capitalization, a value which has now touched around $220 billion, the need and demand for token insurance has skyrocketed over a short period of time.
Despite the blockchain technology backing cryptocurrencies, recent events have proven that cybersecurity remains a major threat to the integration of blockchain technology into the real world financial ecosystem. With the availability of Decentralised finance which is built on top of public blockchains, everyone is free to transact the money without limitations of centralized systems, with fees almost equal to zero and without having to deal with middlemen/central authority.
Bitcoin and Ethereum are two of the most profound instances of decentralized digital currency from the past many years. However, if you seek to ensure the security and transact your funds with convenience, a brand new platform dubbed, ‘Largo’ will be a trusted hand.
The advent of Decentralized finance (Defi) opened a new door of possibilities to market Investors. With the crypto sphere setting the pace in this highly disruptive ecosystem, blockchain technology provides the flexibility and a degree of control never seen in traditional financial institutions. It provides financial services to everyone across the globe, regardless of their location and status. To make the good news more interesting, numerous blockchain enterprises have recognized these possibilities and are rising, in their numbers, in order to further develop the innovation.
Among such blockchain establishments with a notable business proposition and market traction is Largo. Largo Platform has its native token, LRG Tokens which has been created to transform the traditional insurance industry into a much more informed and technologically advanced tool of money security.
With a primary mission to ensure the security of tokens, Largo remains the investor-choice while assuring its investors of the peace of mind that comes with knowing that their funds are protected in the case of a bug or attack from the usual suspects.
Aiming to set the pace among the ever-increasing number of platforms offering such services, Largo sets itself apart with profound technological innovations and industry reputation. For instance, the platform's underlying Proof-of-Stake (PoS) blockchain architecture, in its core, ensures transaction security and also provides fraud resistance. These mixed up with a low price and high speed makes Largo Coin an appropriate instrument for all strata of digital finance.
Stretching their arms all the way from wallet provision to providing a cryptocurrency exchange, token insurance platforms have a great deal of responsibility in their bid to outperform the incumbent, traditional insurance companies. While these platforms also typically provide a peer-to-peer system of value transfer among their customers, many also look into customer's ease and satisfaction in such areas as e-commerce.
Last but not least, Largo deals with large-scale insurance of companies insuring them with its crypto, in other words, when investing in companies that are insured through Largo, users receive the equivalent amount in tokens, which can be sold on the exchange if something goes wrong.
Disclaimer. This press release is provided by a third-party source. This press release is for informational purposes only and should not be viewed as an endorsement by CoinIdol. We take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy. Readers should do their own research before investing funds in any company.