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BITRUST – an affordable, decentralized, easy to use peer-to-peer (P2P) cryptocurrency insurance marketplace

BITRUST is an affordable, decentralized, easy to use peer-to-peer (P2P) cryptocurrency insurance marketplace that is based on Ethereum, a blockchain-leveraging smart-contract technology. The objective of BITRUST is to be affordable for retail digital currency investors with an average monthly trading volume of between $100 and $100,000. In 2017, 179 new altcoins were launched, many of which have since decreased in value dramatically. With BITRUST, investors who are interested in coins that are new to the market will be able to hedge the risks associated with such pitfalls. They offer a secure and easy-to-use risk management solution for cryptocurrency enthusiasts which enables cryptocurrency investors and day-to-day users to significantly mitigate risks associated with high market volatility.

Cryptocurrency

Most of us are familiar with using digital currencies, ever since IBM released their 3651 controller and 3663 checkout terminals in 1973. But in recent years, interest has grown in a new type of digital currency, cryptocurrency, which aims to satisfy the demand of individuals looking for a digital platform to transact securely, anonymously, and in a decentralized manner. The first cryptocurrency (Bitcoin) began operating in January 2009, with the second cryptocurrency, Namecoin, not emerging until more than two years later, in April 2011. Today, there are over 1,200 cryptocurrencies and this number is growing each month. At BITRUST they expect that the total number of cryptocurrencies will reach 1,500 by the end of 2018.

Security problems

The surge in market prices of cryptocurrencies in recent years has made exchanges a popular target for hackers as they handle and store large amounts of cryptocurrencies. Numerous events have led to the loss of exchange customer funds, and a wide variety of schemes have been deployed, ranging from outside server breaches to insider theft. In many cases, exchanges where losses occurred were forced to close and customer funds were never recovered. One 2013 study analyzing the survival rate of 40 bitcoin exchanges found that over 22% of exchanges had experienced security breaches, forcing 56% of affected exchanges to go out of business.

Around 73% of exchanges control customers’ private keys, making them very attractive for hackers as these exchanges have possession of user funds denominated in cryptocurrency. 23% of exchanges do not control customers’ private keys, thereby preventing exchanges from accessing customer holdings or not being able to return funds to users in the event of an exchange that ceases to function. Large exchanges act as custodians more often than small exchanges: only 11% of large exchanges let users control keys, compared to 30% of small exchanges.

How it works

Since BITRUST is a peer-to-peer decentralized cryptocurrency insurance platform, a BITRUST smart contract can involve two or more counteragents. For simplicity, they use the following terms: those seeking an insurance are Buyers (B-side), and those willing to insure are called Sellers (S-side).

For example:

B-side places a bid on the BITRUST platform to insure a certain position:
–  Insure against ETH (with a value of $100) dropping in price by 30% against BTC for 96 hours (based on a certain index).
 With or without certain conditions:
– Willing to pay in digital currencies an equivalent of $5 as an insurance.
– Claim an equivalent of $15 in case the price drops to $70 or below.
 S-side may be just one seller or a cluster of several sellers, which can:
– Agree to the terms proposed by B-side.
– Or make a counter offer proposing slightly amended terms.

Token BITRUST

They intend to provide real value for holders of BITRUST tokens (BTFs) on the secondary market and reward early investors.To promote the use of BITRUST tokens within their platform and increase the value of their tokens, they will charge a fee of only 0.1% against the total sum of the insurance contract in case where the entire deal is conducted in BTFs. This is a discount of 80% of their regular fee, which will serve as a strong incentive to use BTF tokens for the service BITRUST provides to the blockchain community.


For more information, visit the Website or read the Whitepaper.

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