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After playing a vital role in controlling network communication, Internet of Things (IoT) devices and supply chains, Blockchain is now set to take on a new task with The Sun Exchange. The South Africa-based startup is a marketplace, where one can buy solar cells to power their businesses and communities. The firm now intends to use Blockchain for insurance.
The Sun Exchange has said that it would use its Ethereum ERC20-based rewards currency, SUNEX, to build a solar project insurance fund or SPIF. The company’s aim behind this is to cover the expenditure of relocating PV plants to new sites if the original electricity offtakers fail to make payments. Abraham Cambridge, Founder and CEO of The Sun Exchange, said that they are creating SPIF using SUNSEX because traditional insurance products do not presently cover that particular area of risk.
He added that conventional insurance companies cover the loss of earnings of up to six months, but are little interested in paying for the repositioning of an entire plant to another offtaker. So the Blockchain-based solar project insurance will take care of that risk by allowing investors to pay into a fund that could be used to cover the price of plant transfer.
According to Cambridge, people are not forced to contribute to the SPIF, which is subject to a one-year minimum commitment. Also, contributors will be rewarded with up to a 20 percent return, which will be paid in SUNEX tokens.