Dynamis is a smart contract for peer to peer insurance running on the Ethereum platform. It provides supplementary unemployment insurance by using the LinkedIn social network as a reputation system. Applicants for a new policy can use LinkedIn to verify their identity and employment status. Claimants can use their LinkedIn connections to validate that they are looking for work. The exercise of one’s social capital within one’s social network enables participants to obtain a new policy or open a new claim.
Linkedin becomes an oracle which facilitates the approval of applications for new policies and the approval claims for payments. It uses smart contract logic to automate the underwriting of policies and the evaluation of claims in coordination with other policy holders through the process of HITs (Human Intelligence Tasks) such that it is able to issue supplemental unemployment insurance without the need of any fulltime staff.
Applications are approved in a peer to peer fashion by other policy holders who function as evaluators. The system relies on social media (linkedIn) to provide evaluators with the adequate information to approve new policies. Premiums are held by the insurance DAO smart contract and are used to pay claims. Claims are awarded through the process of verification by policy holder peers who determine if a claim is within a policies scope. Funds are released through the process of validation which uses the claimant’s social network as an oracle to validate a claimant’s ongoing unemployment status. The claims award process is the means by which a maximum claim length is determined and the claims validation process is the means by which a claimant’s continuing eligibility is confirmed.
To better understand how this process works please see this infographic. If you want a more through explanation as to how Dynamis resolves the specific challenges associated with issuing peer to peer insurance please see our blog posts.