Chainlink expressed that they are excited to award a social impact grant to Shrub Labs, supporting the development of open-source External Adapters that bring hurricane and earthquake data on-chain to enable parametric disaster insurance solutions for people affected by climate change.
Shrub creates tradable ERC-20 tokens which will be backed by weather derivatives which can be redeemed when a natural disaster happens.
For clarity, ShrubLabs offer Peer-to-peer hedges against natural disasters. Further, in 2020 alone, global losses from natural catastrophes has been computed to be 210 billion dollars. Several regions in the world to date do not have access to insurance products, this means several hundreds of millions of people are not able to protect their families or businesses from financial hardships due to natural disasters.
In support of more globally accessible and affordable insurance solutions, the ChainLink community grants program are now awarding a social impact grant to Shrub, which is a peer-to-peer parametric insurance marketplace on the blockchain, which is based on an initial prototype which has been developed at the Spring 2021 ChainLink Hackathon
Shrub being a peer-to-peer parametric weather derivatives marketplace makes it possible for users to buy or sell coverage versus the happening of specific disaster events.
Insurance coverage policies are coded as hybrid smart contracts which are priced and settled on-chain by making use of external data feeds. Shrub makes use of Chainlink oracles to securely bridge real-world data on-chain, thus leveraging Chainlink External Adapters to come up with connections to any data source, including publicly available information and authenticated APIs for premium data, IoT sensors, and enterprise backends.
The initiatives of the grant funded are to launch multiple Chainlink nodes on testnet to collect earthquake and hurricane data. These nodes make it possible to make the data rich with custom APIs and External Adapters which helps developers to query data in several ways. Thus, it becomes easier to learn about the most recent earthquake and hurricane’s magnitude, category, and location.
Thus shrub coverage solutions will become accessible to under-insured populations and within hard-to-reach markets. Apart from that data support can be provided to support protection against pandemics, sea-level rises, droughts, and wildfires so people have more options of protecting their livelihoods.
Developers can use the open-source documentation with API guides and detailed information of various nodes and External Adapters, eventually empowering Chainlink ecosystem projects to harness Shrub’s climate and weather data to build novel use cases.