Blockchain Revolution Making Its Way to Health Insurance Industry With Tides

  • Alex Morris
    ⭐ Features

    Blockchain technology can potentially transform the US health industry, and Tides recognizes this opportunity

Blockchain Revolution Making Its Way to Health Insurance Industry With Tides
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The majority of Americans still think that their healthcare system is troubled, a Gallup poll shows. Another study shows that the US has the highest dissatisfaction rate among all industrialized countries (despite a mammoth-size 17.1 percent of the country’s GDP being spent on healthcare). While the Democrats and the Republicans are beating around the bush, trying to implement their vision of health care for America, Tides is poised to make a revolution in the health insurance industry.

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What is Tides?

Tides is a peer-to-peer insurance network. The impressive team behind this project consists of reputed physicians and tech professionals. Its CEO Dr. Chandra Duggirala has an extensive background in the healthcare industry.    

Disrupting insurance monopolies

The primal focus of Tides is to disrupt the near-monopoly formed by the biggest insurance providers that are plaguing the whole industry with opaque and sky-high bills. With its decentralized system of governance, Tides gives consumers an ability to join self-organized “pools” where they can adjust their healthcare plan to their personal needs, specifying coverage, limits and terms.

Reducing the price of insurance

You can forget about expensive premiums since there is no centralized body that is incentivized to pump up its pricing. The Tides network completely cuts off the advertisers, lobbyists and other middlemen that inflate the coverage cost.

Any hidden costs that are needed for administering your health insurance (“copays”, “deductibles”) will be completely eliminated.  Furthermore, Tides ensures price sensitivity by distributing premium surpluses to their members.

Tide Token

The Tide token, which runs on the Stellar network, is required for joining the pool and paying the network fees. Premium surpluses will also be redistributed in Tide tokens. According to the startup’s roadmap, the tokens will be issued in Q4 2018. In Q2 2019, the Tides users will be able to join a pool and submit their claims.   

Why Stellar?

 A slew of companies are already recognizing the possibility of a Stellar network, building their projects atop it. Back in July, IBM teamed up with Stellar in order to launch a new dollar-backed stable coin Stronghold USD, according to a U.Today report.

As mentioned above, Tides is yet another project that is powered by Stellar. The Stellar network offers much lower fees than Ethereum, which makes it more cost-effective to build different projects.

It’s worth mentioning that the possibilities of Stellar extend far beyond Blockchain since– this innovative technology is a significant development compared to Bitcoin and Ethereum. Stellar is powered by the distributed ledger technology, but its Consensus Protocol (SCP) makes it unorthodox. The SCP protocol trumps other existing technologies due to fast and extremely cheap transactions coupled with its asymptotic security, which effectively its group of members, dubbed “quorums.”

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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