# kaal:claim:3406323-025

**Claim.** Without something that functions as an insurance policy when commercial risks materialize, the public has no reason to pursue the benefits of decentralized commerce, so decentralized underwriting is of core importance to any future decentralized technology solution.

**Type.** condition  **Support.** argued

**Holds when.**

- sophisticated smart contracts carrying risk of failure

**Source quote.**

> Without someone or something that functions as an insurance policy should risks in commerce materialize, the public has no reason to try to benefit from the potential benefits of decentralized commerce

**From.** Wulf A. Kaal, *Decentralization - A Primer on the New Economy* (2019), VI. Evolution, page 13

**Cite as.** Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323

**Verify.** sha256 of source PDF `6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20A%20Primer%20on%20the%20New%20Economy.pdf

**Topics.** decentralization, defi, risk-and-incentives

**Keywords.** decentralized-underwriting, insurance, risk-allocation, adoption

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3411897-029

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.