Insurance company Lemonade has partnered with major blockchain companies to form the decentralized autonomous organization (DAO), Lemonade Crypto Climate Coalition (L3C), to protect farmers from climate change by offering blockchain-based insurance.
The insurance company founded the Lemonade Foundation, a non-profit organization focused on creating social and environmental change using blockchain-enabled technologies. The foundation will work closely with members of the L3C, such as Chainlink, Avalance, DAOstack, Etherisc, Hannover Re, Pula and Tomorrow.io.
Weather insurance will take the form of a decentralized application (DApp) on the Avalanche network. The DApp will also allow farmers to make and receive payments using cryptocurrencies or with their local currencies. According to the announcement, the DApp will arrive in Africa in 2022.
Daniel Schreiber, director of the Lemonade Foundation, said that the foundation was created to build technologies of exponential impact. With this, “they hope to take advantage of the communal and decentralized aspects of web 3.0 and real-time weather data to offer affordable and instant weather insurance to the people who need it most”, Schreiber said.
This measure is expected to affect some 300 million farmers in Africa. Rose Goslinga, co-founder of Pula, a Kenya-based insurance technology company, says that “Most face real climate risks to their livelihoods, as traditional indemnity-based insurance is often unaffordable or unavailable to them.” Goslinga points out that an on-chain solution will have a scalable positive impact in the region.
chainlink, A founding member of L3C, he also plans to contribute his team and technology to the cause. “We plan to make Chainlink’s equipment and platform available to L3C in an effort to protect the millions of farmers who depend on what they grow from the devastation of climate change,” said Sergei Nazarov, Chainlink co-founder.
Meanwhile, a report shows that cryptocurrency users in Africa increased by 2,500% in 2021. Data shown by the KuCoin exchange indicates that cryptocurrency transactions in the region grew significantly in 2021. Due to this, the region represents around 2.8% of the global trade volume.
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