Blockchain Underwriting System Smart Contract Verification
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Solution Overview
Problem
Current insurance underwriting systems face challenges in ensuring data accuracy and credibility due to the difficulty in collecting and verifying user data from multiple sources, leading to potential inaccuracies in automatic underwriting results.
Innovation Solution
A blockchain-based system that utilizes smart contracts to establish and enforce underwriting and assessment rules, calculating user scores based on historical transaction data and determining product eligibility, ensuring transparency and credibility through a decentralized network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If automatic underwriting is implemented through a system with preset rules, then underwriting efficiency is improved, but data accuracy and credibility deteriorate due to difficulty in collecting and verifying user data from multiple sources
Solution Approach 1:
The patent introduces a blockchain-based intermediary platform that mediates between multiple data sources (hospitals, pharmacies, banks, etc.) and the underwriting system. This intermediary uses smart contracts to automatically verify and record user data from third-party providers, ensuring data authenticity without manual intervention. The blockchain acts as a trusted mediator that resolves the contradiction by enabling efficient automatic underwriting while maintaining high data accuracy through decentralized verification.
Solution Approach 2:
The system implements feedback mechanisms where user data is continuously verified against blockchain-recorded information from multiple sources. The smart contracts automatically compare incoming data with historical records and provide feedback on data consistency. This feedback loop ensures that underwriting decisions are based on accurate, verified information while maintaining automated processing efficiency.
2Measurement precision
If data is collected from multiple third-party sources to improve underwriting accuracy, then measurement precision is improved, but device complexity and data verification difficulty increase
Solution Approach 1:
The blockchain platform serves as a centralized intermediary that simplifies the complex task of collecting and verifying data from multiple third-party sources. Instead of the underwriting system directly managing complex connections with numerous hospitals, banks, and pharmacies, all data sources interface with the standardized blockchain protocol. This intermediary layer reduces system complexity by providing a unified verification mechanism.
Solution Approach 2:
The smart contract system implements universal, multi-functional verification capabilities that can handle various types of data from different sources (medical records, financial information, etc.) through a single standardized interface. This universal approach reduces system complexity by eliminating the need for separate verification mechanisms for each data source, while still maintaining high underwriting accuracy across all data types.
3Ease of operation
If traditional centralized systems are used for data verification, then ease of operation is maintained, but reliability deteriorates due to potential data tampering and lack of transparency
Solution Approach 1:
The patent segments the centralized verification authority into multiple decentralized nodes on the blockchain network. Instead of relying on a single centralized system that may be vulnerable to tampering, the verification function is distributed across multiple independent participants. Each node maintains copies of the verification rules and data, ensuring that no single point of failure or manipulation exists. This segmentation maintains ease of operation through automated processes while dramatically improving reliability through decentralization.
Solution Approach 2:
The blockchain introduces a new intermediary layer between users and the underwriting system that enhances both reliability and ease of operation. This intermediary uses cryptographic protocols and consensus mechanisms to ensure data integrity automatically, eliminating the need for complex manual verification processes. The result is a system that is as easy to operate as traditional systems but with significantly improved data credibility through transparent, tamper-proof recording.
Data Source
AI summary
The specification provides a blockchain-based application review system, method, and storage medium. The blockchain-based application review system comprises: a requesting client, a transaction end, and a blockchain node. The requesting client sends a program purchasing application to the transaction end; the transaction end receives the program purchasing application, determines product information of the target program according to identification information of the target program, and sends a program admission review application to the blockchain node based on identification information of the user and the product information of the target program; the blockchain node receives the program admission review application, executes a program admission review task when an execution condition of a first smart contract is satisfied, generates a corresponding review result, and sends the review result to the transaction end; and the transaction end receives the review result and sends the review result to the requesting client.