Etherisc, an ethereum and smart contracts based insurance dapp primarily currently targeting flight delays, has been accepted to the third cohort of Britain’s Financial Conducts Authority (FCA) sandbox.
Only 18, out of 61 applicants, were accepted, with Etherisc the only ethereum based project to be accepted as far as we are aware.
Other participants include Barclays, which is apparently working on “Regtech proposition which tracks updates to regulations within the FCA Handbook and aligns their implementation to Barclays’ internal policies,” FCA says.
As well as, among others, Nationwide, which is working on “automated solution providing digital savings guidance and investment advice.”
These innovative projects are now to test their products in a live market environment, under the supervision of FCA and potentially with customized rules whereby the spirit, rather than necessarily the letter, of the law is upheld.
“Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services,” Christopher Woolard, executive director of strategy and competition at the FCA, said before adding:
“As we open the application window for our next sandbox cohort, we continue to encourage applications from firms of all sizes and from a wide range of sectors, including sectors we haven’t seen heavily represented in the sandbox to date.”
Etherisc, which was previously known as FlightDelay during its proof of concept, was co-founded by Stephan Karpischek, together with Christoph Mussenbrock.
It addresses cumbersome claim processes for cancellations or flight delays which can often be difficult as, although required by law to be compensated, companies sometimes intentionally place barriers so as to avoid paying.
Etherisc’s solution is to automate the entire process so that there is no claim as such. Instead, a smart contract daap, connected to flights data feeds from Oraclize, automatically and fairly instantly pays out based on whether there was such cancellation or delay.
They have now seemingly developed considerably since their demo days, entering into a partnership with Atlas Insurance on Malta, and now operating as fully licensed.
The service they provide is simply allowing individuals to enter basic details, such as their flight number, paying an insurance premium, and then through ethereum’s smart contracts automatically paying them compensation if the flight is delayed or canceled.
Making the user interface quite intuitive and the process fairly automated, with its application potentially extendable to train journeys or other services.
With a potential impactful use being in business to business commerce whereby flight operators, insurance companies, or even other third parties, use the service in bulk, allowing the end customer to just enjoy automatic compensation.
We will have to wait and see how exactly it will develop in the live market place, but this is one of the first blockchain based product to go into live production, and might indicate that many more may follow in the coming new year as this space now begins a transition to production use.