The value proposition of the blockchain product is very unique and has resulted in the project gaining a large amount of attention recently. NXM tokens have recently grown in popularity and are currently traded on most major cryptocurrency exchanges. This can be incredibly profitable, but it is also highly risky. Swing and arbitrage traders aim to capitalize on these price differences. If your staked NXM is in a higher-risk smart contract, you could potentially lose a portion of your stakings if the smart contract is hacked – followed by a claim.Īdditionally, NXM is a cryptocurrency that experiences price volatility and fluctuations like any other cryptocurrency. Essentially, smart contracts that have more NXM staked are seen as low-risk, and therefore buying coverage for the smart contract is cheaper. The principle is very innovative, Nexus Mutual members can stake NXM with particular smart contracts, and the more they stake is indicative of how much they trust the smart contract. If there is an exploit, members are tasked with the responsibility of reaching a consensus as to whether a payout should occur and whether claims are legitimate or not. The protocol is incredibly innovative because members can decide the risk assessment level associated with particular smart contracts. The Nexus Mutual platform is used by individuals wishing to purchase smart contract insurance. Individuals wanting to learn more about the protocol and how it works can read through the whitepaper. Smart contract covers are a relatively new concept and an individual wanting to buy smart contract cover should thoroughly research how the protocol works and certain factors that could affect payouts – this is essential to understand before investing in the protocol. Similarly, all external participants of smart contracts such as miners are not eligible for smart contract coverage. Payouts can only be triggered under certain circumstances – phishing attacks or network congestion issues don’t warrant a payout. The claims for this protocol are currently listed as ‘denied’. The claims assessment is clearly defined the claims assessment includes a list of protocols such as Anchor Protocol which recently suffered enormous losses. He protocol aims to price users and businesses with an additional layer of security and the protocol has been rather firm about what event would warrant a payout and when the protocol would pay potential claims. Most notably, the Axie Infinity Ronin Bridge hack where $650 million was hacked. Smart contract failure is a danger, and there have been several incidences recently where contracts have been hacked and retail investors, institutions, and all parties involved have lost substantial amounts of money. The Nexus Mutual team, along with its advisory board members, are revolutionizing the principles of a standard insurance company and transitioning it to incorporate digital asset cover for individuals and businesses. The basis of the protocol focuses on smart contracts and the smart contract code a risk assessment is performed on individual smart contracts when establishing smart contract cover.Įssentially, the protocol helps protect against DAO hacks and exploits and is looking to protect against wallet hacks in the future. Some of the key differences of the Nexus Mutual protocol are that users aren’t protected from traditional things such as disability or damage to property instead, they’re only protected with regards to crypto, specifically smart contract cover. This can be seen as advantageous and disadvantageous, but the principle of the protocol is innovative, to say the least. The innovative blockchain protocol incorporates both unique and traditional features that are seen in current traditional models. In traditional insurance models, this is never the case, and more often than not, the people at the top always take the biggest cut and leave the policyholders with little to nothing. ![]() Essentially, NXM token holders receive a portion of the revenues generated by the protocol. The key difference between Nexus Mutual and traditional insurance companies is that policyholders in Nexus Mutual are benefactors of the profit generated by the protocol. Nexus Mutual members form a critical part of the protocol and are essentially responsible for the project’s success and the direction of the project. Nexus Mutual is essentially a “mutual” but in an innovative way that incorporates blockchain technology. What Are The Future Plans of Nexus Mutual (NXM)?.Biggest Competitors Of Nexus Mutual (NXM).What is the market cap of Nexus Mutual (NXM)?.How many Nexus Mutual (NXM) Tokens are there?.What’s controversial about Nexus Mutual (NXM)?.How long has Nexus Mutual (NXM) existed?.
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