@sansfsdra
Decentralized insurance tackles coverage for smart contract risk, hacks, and black swan events. Scaling requires sufficient underwriting capital, actuarial accuracy, and fair governance. Trust is difficult: under-collateralization or governance failures could erode credibility. However, as DeFi grows, demand for risk coverage will rise. Decentralized insurance may not replace traditional firms, but it can carve out niche markets, offering protection where centralized insurers won’t. Scaling depends on capital efficiency and delivering reliable payouts in crises.
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