On-Chain Insurance — Method

Definition

On-chain insurance describes insurance structures in which contractual conditions, risk allocation, and execution mechanisms are encoded and executed within blockchain-based systems.

Scope Boundary

Included

• Insurance structures implemented through smart contract logic
• Protocol-level risk allocation mechanisms
• Automated execution of coverage conditions based on predefined rules
• On-chain representation of insurance agreements
• Systems where claim execution is triggered by system-defined conditions

Excluded

• Traditional insurance products using blockchain for data storage only
• Vendor-specific insurance platforms or services
• Implementation frameworks or development tooling
• Regulatory interpretation or legal advisory content
• Product-level offerings or commercial insurance solutions

Structural Framing

• Contractual logic is embedded within programmable systems
• Execution is determined by predefined rule conditions
• Outcomes are triggered by system-recognized events
• Interaction occurs between on-chain execution and external data inputs