On December 29, 2020, the China Banking and Insurance Regulatory Commission released the operating statistics for the insurance industry. As of the end of November 2020, the insurance industry has achieved a total of 4.22 trillion yuan in original insurance premium income, a year-on-year increase of 6.5%. It is predicted that in 2021, insurance premiums will increase significantly year-on-year, achieving a growth rate of 9.8%.
The rapid development of the insurance industry stems from the growth and application of high technology; using the decentralization and consensus mechanism of the blockchain, smart contracts can now transform paper contracts into programmable codes and insurance claims can be processed automatically using smart contracts. PricewaterhouseCoopers (PwC) estimates that the use of blockchain technology in the insurance industry can save up to 15% to 20% in total operating expenses. As the first platform in the insurance industry to apply blockchain technology, BIG has been blessed with many new opportunities but has also faced numerous challenges in the process.
A new generation of blockchain technology
As the transaction speeds of existing blockchains are too slow and its response too rigid, coupled with its unfamiliarity to traditional digital infrastructure, the technology is largely unused by most organizations. BIG on the other hand, has its own contract and main chain technology, which better solves the speed and security issues of the blockchain.
The BIG platform is the world's leading customizable and extensible insurance ecosystem based on blockchain, Internet of Things and artificial intelligence. The AURA consensus algorithm that it utilizes has a good balance of fairness and efficiency and the bimodal models of POS+DPOS consensus are adopted as the engine for generating blocks. In order to make blockchain technology more suited to the needs of the insurance industry, BIG has continuously modified and updated its main chain technology with its extensive experience and knowledge.
The BIG advantage
In order to ensure scalability, security, speed (2s/block) and transaction throughput (3000+ TPS), the BIG platform’s main chain technology adopts "joint models". This effectively connects organizations (banks, merchants, DApps) with users of multiple blockchains through the infrastructure it has built. Through regular technical updates and modifications, it ensures that the calculation path of the BIG platform is more flexible, and its transaction processing speed, faster and safer.
Compared with other types of blockchains, BIG’s main chain technology represents a change in network design and development concepts. Transparency is ensured with the BIG blockchain browser where users can view their holdings, transactions and network data related to the account. Activities on the chain are open to everyone, ensuring the openness and fairness of the insurance process, setting a standard for the industry and institutions. Modulization is an important design goal to reduce system complexity and reduce future development and maintenance costs. This is not only for the platform itself, but also for other blockchains that run applications within the BIG ecosystem.
BIG’s main chain supports any public chain with smart contracts; and this allows parties to create binding agreements without a trusted third party. By uploading formula data and trusted off-chain calculations, BIG is able to break through the bottleneck issues of a public chain and provide high availability, high scalability, and a comprehensive improvement to the user experience. Developers only need to focus on their own development without worrying about the chain. As an insurance platform, data migration functions are very important. With the expansion of the database, application data on BIG can be migrated to the application's own independent blockchain, and amount of time for blockchain renewal can be reduced in a targeted manner, which will make applications more cost-effective. With consistent development and construction of the platform, the BIG platform will provide more functional migration tools for database migration between blockchains.
The design and application of the BIG main chain is a major advancement in blockchain technology, which enables automatic execution and decentralization of smart contracts in many application scenarios. With the rapid development of evolving technology such as blockchain, BIG will continue to innovate itself and build the world's most stable, functional and influential insurance platform for the benefit of all users globally.
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