The project aims to provide a blockchain-based parametric insurance platform that helps protect smallholders from the effects of climate change.
Today, the Chainlink Community Grant program announced funding for a low-cost insurance collaboration between Etherisc, a decentralized insurance protocol, and ACRE Africa, a microinsurance issuer focused on the planet’s second most populous continent.
According to an announcement from Chainlink, the project aims to build a blockchain-based insurance platform that provides affordable protection to nearly 250,000 smallholder farmers in Kenya, many of whom are expected to be disproportionately affected by climate change over the next three years.
The planned platform will also provide insurance policies with installment payments worth the equivalent of 50 cents in local currency.
Funding money will be used to finance several aspects of the project, such as developing smart contracts, building a user-friendly front-end to interact with farmers, integrating with local payment systems, and various other technical developments.
In addition, part of this funding will be used for financing studies related to the insurance economy for agricultural crops in many African countries, with the aim of determining sustainable coverage models for insurance companies and farmers.
“We are pleased to continue our work with farmers in East Africa by receiving support through a Chainlink Community grant to help build and implement a more reliable and cost-effective model for crop insurance with the Etherisc collaboration.”
said ACRE Africa CEO George Curia.
This project is part of a wider trend of growing interest in blockchain technology that is spreading across the African continent. Earlier this year, open source weather technology company Telokanda announced a blockchain project to track the weather in West Africa.