The insurance industry is over two hundred years old and it has evolved into a vital component of the global economy. The demand for insurance has grown by more than 130 percent over the last decade and is now a staggering $5.5 trillion industry. With new businesses and opportunities coming to life, the demand is unlikely to cease. Likewise, one industry where the demand for insurance is growing at a rapid pace is crypto and DeFi. Despite the rising demand for insurance, today’s fragmented financial infrastructure faces significant challenges. Over 97% of cryptocurrency assets are not protected against unjustified losses due to events like smart contract failure or code vulnerabilities. In contrast to this, users of traditional financial tools enjoy the protection of highly regulated institutions such as the Federal Deposit Insurance Corporation (FDIC). As a solution to this, FairSide, a cover protocol, is introducing a strategy proven in traditional insurance to all crypto uses. What is the FairSide Protocol? FairSide is a next-generation cover primitive powered by its native crypto token FSD. It aims to offer crypto users the same benefits of insurance awarded to traditional finance through its decentralized cost-sharing network. The protocol is working to advance the current insurance processes in crypto to provide much-needed protection for crypto investors. What’s unique about FairSide is that it decentralizes the convent...
