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.
According to a University of Cambridge study on digital currencies, the market capitalization of cryptocurrency reached USD158.5bn in August 2017, showing a year on year increase of 795%. By the end of 2017 it swirled up to an unbelievable, unprecedented USD700 bn mark and any predictions of future pace of growth are next to impossible due to recent spectacular surges in the market. However it is only expected to grow since more institutional players and hedge funds are entering the market all the time.
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).
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.
Ethereum-based smart contract guarantees
BITRUST utilizes Ethereum smart contract technology, which guarantees the execution of a transaction that has been pre-agreed by both parties. The entire transaction within BITRUST requires both parties — the buyer of insurance and the seller of insurance — to lock their funds in BITRUST tokens (BTF) or a certain set of other cryptocurrencies as permitted by their platform. After the insurance contract date expires (as pre-agreed by both parties) and based on the conditions provided, the BITRUST smart contract is executed in a decentralized and automated way — ensuring the agreed terms are carried out. This mechanism eliminates the possibility of fraudulent behavior by any of the parties involved, e. g. not delivering on the promise (payment) in case the “bet” did not go in their favor.
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.