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> There is nothing being produced of value from the assets. A guy like Warren Buffet can clearly appreciate value in the sense of institutions, after all he ma

> There is nothing being produced of value from the assets. A guy like Warren Buffet can clearly appreciate value in the sense of institutions, after all he made his fortune largely in the insurance sector. We are still in the early stages of Crypto, only now we see serious DAO structures start to emerge. There is also a good chance that he will see his entire industry disrupted in some years as more efficient ways to govern small-scale institutions, like an insurance company, are emerging.

paulgb 4y ago
Is an insurance DAO fundamentally any different from mutual insurance? What benefit does the blockchain provide? https://en.m.wikipedia.org/wiki/Mutual_insurance https://en.m.wikipedia.org/wiki/Mutual_insurance
- deleted 4y ago
  [deleted]
- madsbuch 4y ago
  There are probably no fundamental differences like there are no fundamental difference on transportion from a horse to a car. You just have the benefit when you can drive 130kmh for hours on well maintained road infrastructure instead of riding through a forest.
  - Eisenstein 4y ago
    There are benefits from moving from a horse to a car. What are the benefits for moving insurance onto a blockchain?
    - mopsi 4y ago
      I don't need to fight airlines and insurance agents for compensation when my flight gets delayed. A smart contract can unlock insurance payouts as soon as independent organizations responsible for managing air traffic verify the delay. Cutting out all the current manual labor will lower insurance premiums and offer much more trustworthy service. This is typical automation story. Replacing switchboard ladies with automated systems wasn't "fundamentally different" either, but made calling much more efficient. Government organizations are already collecting loads of machine-readable stats on things like road accidents, and it's fairly trivial to tie these sources of ground truth with automated insurance systems. There should be no reason for me to fill forms and for a lady in a expensive office building to process them, if my insurance is simple standard contract and department of transportation has a database entry stating when, why and by how much my flight was delayed. A script on AWS can process that, and free our time for more valuable or more pleasurable enterprises.
  - paulgb 4y ago
    If speed is the primary advantage of a car to a horse, what is the primary advantage of an insurance DAO to mutual insurance?
    - madsbuch 4y ago
      Instant governance decisions that does not require a case worker.
  - deleted 4y ago
    [deleted]
HermanMartinus 4y ago
Turns out we govern small scale institutions pretty well without blockchain. Eg: companies, collectives, organisations, associations, etc.
- madsbuch 4y ago
  Maybe, we will see. This is the beautiful thing about technology – time will tell, not opinions.
  - HermanMartinus 4y ago
    It's not an opinion. We have millions of the aforementioned organisations currently and historically. They do work. We, however, don't have a single example of a DAO that has done anything of merit. Yes, time will tell if they find a way to make it work, but the fact of the matter is that they aren't needed.
    - madsbuch 4y ago
      Of cause your wording represents an opinion. You say there is no room for improvement on current small scale institutions by using blockchain technologies. I will leave that opinion to you. It took several decades from the first steam engines til we had a serious contender to previous means of transportation on a horse back. So the empiric foundations you refer to are not representative. Have a good day.
      - Eisenstein 4y ago
        Steam engines were not designed to supplant horses as transportation, they were designed to supplant horses for work. In that regard there was effectively no lag time between their invention and their usefulness. What is it with people defending crypto with terrible metaphors?
        madsbuch 4y ago
        > What is it with people defending crypto with terrible metaphors? Why do you feel the need for this type of attack?

paulgb 4y ago

Is an insurance DAO fundamentally any different from mutual insurance? What benefit does the blockchain provide? https://en.m.wikipedia.org/wiki/Mutual_insurance https://en.m.wikipedia.org/wiki/Mutual_insurance

deleted 4y ago
[deleted]
madsbuch 4y ago
There are probably no fundamental differences like there are no fundamental difference on transportion from a horse to a car. You just have the benefit when you can drive 130kmh for hours on well maintained road infrastructure instead of riding through a forest.
- Eisenstein 4y ago
  There are benefits from moving from a horse to a car. What are the benefits for moving insurance onto a blockchain?
  - mopsi 4y ago
    I don't need to fight airlines and insurance agents for compensation when my flight gets delayed. A smart contract can unlock insurance payouts as soon as independent organizations responsible for managing air traffic verify the delay. Cutting out all the current manual labor will lower insurance premiums and offer much more trustworthy service. This is typical automation story. Replacing switchboard ladies with automated systems wasn't "fundamentally different" either, but made calling much more efficient. Government organizations are already collecting loads of machine-readable stats on things like road accidents, and it's fairly trivial to tie these sources of ground truth with automated insurance systems. There should be no reason for me to fill forms and for a lady in a expensive office building to process them, if my insurance is simple standard contract and department of transportation has a database entry stating when, why and by how much my flight was delayed. A script on AWS can process that, and free our time for more valuable or more pleasurable enterprises.
- paulgb 4y ago
  If speed is the primary advantage of a car to a horse, what is the primary advantage of an insurance DAO to mutual insurance?
  - madsbuch 4y ago
    Instant governance decisions that does not require a case worker.
- deleted 4y ago
  [deleted]

HermanMartinus 4y ago

Turns out we govern small scale institutions pretty well without blockchain. Eg: companies, collectives, organisations, associations, etc.

madsbuch 4y ago
Maybe, we will see. This is the beautiful thing about technology – time will tell, not opinions.
- HermanMartinus 4y ago
  It's not an opinion. We have millions of the aforementioned organisations currently and historically. They do work. We, however, don't have a single example of a DAO that has done anything of merit. Yes, time will tell if they find a way to make it work, but the fact of the matter is that they aren't needed.
  - madsbuch 4y ago
    Of cause your wording represents an opinion. You say there is no room for improvement on current small scale institutions by using blockchain technologies. I will leave that opinion to you. It took several decades from the first steam engines til we had a serious contender to previous means of transportation on a horse back. So the empiric foundations you refer to are not representative. Have a good day.
    - Eisenstein 4y ago
      Steam engines were not designed to supplant horses as transportation, they were designed to supplant horses for work. In that regard there was effectively no lag time between their invention and their usefulness. What is it with people defending crypto with terrible metaphors?
      - madsbuch 4y ago
        > What is it with people defending crypto with terrible metaphors? Why do you feel the need for this type of attack?