Insurance

The insurance sector is a significant part of the finance industry. It helps manage the risk of losing assets due to unexpected events like theft or expected ones like fraudulent activities. New protocols, like Nexus Mutual, have been developed to address the challenge of insurance in decentralised systems. Insurance works by paying a premium to those who bear risk in case of an unfortunate event, in exchange for financial protection. In a decentralised insurance platform built on Ergo, the participation of individuals, validation of trades by oracles, and management of risks can all be controlled through smart contracts to create a seamless decentralised finance ecosystem.