PureAjo: A P2P Blockchain-Based Insurance Platform

Abstract

Insurance is essential for financial resilience; however, traditional systems remain costly, opaque, and inaccessible, particularly in underserved regions. In many such communities, informal savings schemes like akawo, esusu, and ajo offer grassroots risk pooling; however, these schemes lack scalability, transparency, and fraud resistance. Existing blockchain-based insurance platforms address some of these issues, but often replicate centralized models, rely on token-based governance, or overlook the cultural relevance of local financial systems. This paper presents PureAjo, a fully decentralized peer-to-peer insurance platform that digitizes traditional communal models using smart contracts. Users connect their wallets to join insurance networks, pay premiums, file claims, and vote on outcomes, entirely from the frontend using wallet signatures. Governance follows a one-wallet, one-vote model, eliminating the need for tokens or custodial logic. We evaluated PureAjo on the Mumbai testnet. Core contract interactions executed with average gas usage between 88k and 143k units, and confirmed within 10–14 seconds. PureAjo demonstrates that fully decentralized, culturally grounded insurance systems are not only possible but also performant. It lays the groundwork for scalable deployment on PureChain, a dedicated Layer 2 network optimized for mutual finance.