Kenyan farmers who will be excessively affected by climate change will receive insurance coverage through blockchain technology.
The Chainlink Community Grant Program, i.e. the funding program of the Chainlink crypto project, has announced that it will be awarding funding to the joint insurance project of the blockchain protocol Etherisc and the microinsurer ACRE Africa.
According to the corresponding announcement by Chainlink, a blockchain-based insurance platform is to be developed as part of the funded project, which will provide inexpensive insurance for almost 250,000 smallholders in Kenya. A large proportion of these farmers will probably be severely affected by the consequences of climate change in the next three years.
The planned platform is to offer insurance that can be claimed in the local currency with monthly contributions of just 50 cents
The Chainlink grant will be used to fund various aspects of the project. So the development of smart contracts and an easy-to-use user interface should be achieved with them, and integration into regional payment systems should also be created through them. In addition, the money can also be used for many other technical challenges.
In addition, part of the money is to flow into the financing of studies that examine the profitability of insurance payments for grain cultivation in African countries.
The aim is to find sustainable models that are worthwhile for both the insurer and the farmers
“We are pleased to be able to continue our work with the farmers in East Africa with the support of the Chainlink Community. The funds help us to expand and implement our low-cost insurance for farmers in cooperation with Etherisc, ”explains ACRE Africa CEO George Kura.
The project is part of a larger blockchain usage trend in Africa. At the beginning of the year, for example, the company Telokanda announced a blockchain project that would make the weather in West Africa traceable.