PolkaCover is thrilled to announce that we will be integrating the market-leading Chainlink Price Feeds on Polkadot. We aim to establish precise, up-to-date, and tamper-proof price references for determining the value of assets used within our decentralized insurance marketplace. Most notably, this will allow us to determine the fair market value of user quotes, premiums, and payouts across a multitude of crypto and fiat currencies.
We selected Chainlink to secure all oracle functions on PolkaCover because they offer pre-made decentralized price feeds. These have been time-tested in production and proven to secure billions of dollars in on-chain value for leading DeFi apps. Each Chainlink Price Feed is backed by premium data providers and robust oracle infrastructure. This ensures that all of PolkaCover’s insurance products are fully protected against a variety of unexpected situations, such as API downtime, flash crashes, and data manipulation attacks from flash loans.
Our initial integration will support the following Chainlink Price Feeds ETH/USD, BTC/USD, and USDT/USD, with plans to onboard more as required by platform demand. The integration will be quick and straightforward thanks to a recently released Substrate oracle pallet. This in turn makes Chainlink’s extensive collection of on-chain Price Feeds available to development teams throughout the Polkadot ecosystem.
Securing PolkaCover With Chainlink Price Feeds
As a decentralized insurance solution, PolkaCover’s goal is to lower the transaction and administrative costs of traditional insurance; speeding up the settlement using blockchain technology. Our globally accessible and transparent insurance marketplace creates a seamless user experience where anyone can quickly get insurance coverage using digital assets and traditional payment methods. We plan to offer coverage across a wide array of markets, including crypto-related protection, health, life, education, and family insurance plans. Specifically, our Global CryptoProtect solution will be offered in collaboration with two multinational insurance providers. Through this, we aim to protect users against all forms of crypto loss, including loss from exchange hacks, phishing attacks, and stop-loss protection from price volatility.
One of the important elements to building our insurance platform is accurate price data, which is used to quote policies, price premiums, and calculate payouts in a variety of crypto and fiat currencies. Real-time asset prices are not information that’s inherently available on any blockchain, particularly high-quality price data that reflects a global aggregate from all trading environments. In order to access such premium data, we required a blockchain oracle to fetch aggregated data feeds off-chain and deliver them on-chain to PolkaCover in a secure and reliable manner.
After exploring various oracle solutions, we made the decision to utilize Chainlink and its decentralized price feeds throughout all PolkaCover insurance products. Some of the key features available through Chainlink that factored into our decision include:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators like BraveNewCoin and Amberdata, leading to price data that are aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and washtrading. This makes it both highly accurate and resistant to data manipulation.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security reviewed, and Sybil-resistance oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of hyper-reliability, even during record levels of network congestion and infrastructure outages (e.g., Infura).
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source and oracle network levels, providing strong protection against downtime and malicious behavior when sourcing and delivering external data on-chain.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where multiple projects collectively use and fund oracle networks to fetch commonly required datasets (e.g., BTC/USD). By sharing the costs, we get access to premium data quality and robust oracle security for a fraction of the total cost.
With Chainlink as our go-to oracle solution, we can now bring high-quality decentralized insurance products to users around the world, which they can interact with using a multitude of different payment options. This model can easily scale too, as Chainlink has a large collection of live Price Feeds that can be quickly leveraged to support new insurance products.
“We are elated to integrate with Chainlink. Chainlink is a go-to oracle solution to ensure secure and verifiable data feeds as well as protection for all insurance products. This integration of fast and reliable data feeds into our platform is the starting of a long-lasting affiliation between Chainlink and PolkaCover.”
-Kunal Sadani, Founder and CEO of PolkaCover
“Integrating Chainlink Price Feeds is an important step in launching our decentralized insurance platform on Polkadot, and we feel confident knowing that our users have proven protection against a variety of vulnerabilities that have plagued other oracle solutions”
PolkaCover is the First DeFi insurance marketplace for the global crypto ecosystem. Our aim is to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products for the crypto world.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life and travel policies. The platform will include a frictionless insurance marketplace experience that incorporates next-generation blockchain technology and tokenized incentives.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.