NEW YORK–(BUSINESS WIRE)–Today, Blockdaemon, the world’s largest blockchain infrastructure company for managing and staking nodes, announced an innovative and industry-first insurance policy to protect its customers, including Fortune 500 corporations, banks, custodians and trusts, against the downsides of reducing blockchain staking events. Blockdaemon worked with Marsh, the world’s leading insurance broker and risk advisor, to obtain this policy.
“This new insurance policy is the first of its kind and is designed to give Blockdaemon customers the assurance that there is financial support in the event of a system or security failure that affects them,” said Konstantin Richter, CEO and Founder of Blockdaemon. “Already our experience running nodes on all major networks has led us to develop standard and market-leading risk mitigation, and that’s added assurance for our customers who trust us for their needs. when it comes to blockchain.”
Slashing is a mechanism built into blockchain proof-of-stake protocols to combat validator misbehavior and promote node security, availability, and network participation. If a validator exhibits harmful behavior, a percentage of their tied/staked tokens will be reduced or lost.
The new insurance policy protects Blockdaemon customers if Blockdaemon experiences a system failure or security failure that causes:
A cutting event, where contractual penalties are imposed or entered by a blockchain network due to a protocol violation based on the availability of Blockdaemon services; Where
A double signature event, where validating two or more different blocks in the same section of a particular blockchain network results in liability.
As part of the offer, Blockdaemon has designed a claims process where it will work with the insurance company to determine the cause and amount of the loss in a quick and easy way.
Blockdaemon’s Four Layers of Risk Mitigation
This innovative insurance offer strengthens Blockdaemon’s offer safety first approach and guarantees institutional-grade security for Blockdaemon customers. It is a key pillar upon which institutional trust is built, and that trust in Blockdaemon is embodied by world-leading custodians, exchanges and financial institutions, all of whom rely on Blockdaemon’s unparalleled security standards on a daily basis.
blockdaemon four levels of risk mitigation were designed to prevent downtime and protect Blockdaemon customers from any risk of loss. Insuring clients against risk reduction is a central part of this risk mitigation strategy. This guarantee, an industry first, reinforces Blockdaemon’s commitment to constantly improving and innovating the company’s risk mitigation practices.
Blockdaemon currently caters to over 50 blockchain protocols. Of these, Blockdaemon serves over 25 leading proof-of-stake networks. These are at the frontier of decentralized technology and finance. With so many protocols under management, Blockdaemon’s number one priority is to ensure customers are fully protected at every level. With this announcement, Blockdaemon’s commitment to total customer protection is further reinforced.
Blockdaemon is the leading independent blockchain node infrastructure for seeding, scaling, and deploying nodes with institutional-grade security and oversight. Supporting over 50 leading blockchain networks in the cloud and on bare metal servers worldwide, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect stakeholders trading on blockchains. We power the blockchain economy by simplifying the node deployment process and building scalable enterprise blockchain solutions through APIs, high-availability clusters, automatic decentralization, and automatic node repair. For more information, please visit https://blockdaemon.com/.