Towards decentralized bicycle insurance system based on blockchain

Abstract

Having a transparent and convenient insurance system is desired by users, but the insurance industry currently plays differently. For example, when users ask for a fast and simple self-service, the industry may need a long and cumbersome process, and sometimes users are not sure whether they have a fair deal according to their contract. With the aim of enhancing the current bicycle insurance system in Denmark, we investigate the local market and develop BlockCycle, which is a blockchain-based bicycle insurance system. The basic idea is that insurance companies transform their insurance products into a smart contract, including the criteria of applying the product and the eligibility of compensating into program logic. When a smart contract is deployed, the immutability can ensure the deal integrity and protect both users and insurance companies from the threat of unauthorized manipulation. In addition, blockchain can provide a secure and simple way to decentralize data and services, which enables high availability and reliability. Our experimental results indicate the viability of our system.