Main Risks for Bitcoin Holders
The three biggest concerns for Bitcoin holders: loss of private keys, incorrect transfer addresses, and exchange platform failures. These risks may lead to permanent loss or theft of assets.
Bitlayer's Smart Insurance Solution
Bitlayer has launched a decentralized insurance protocol on Bitcoin Layer 2, allowing users to purchase insurance by paying a small amount of BTR, providing protection against the aforementioned risks.
Private Key Loss Protection
With pre-set multi-signature nodes, users can safely recover their assets if they lose their private keys, avoiding financial losses caused by key loss.
Incorrect Transfer Handling
If users enter the wrong address during a transfer, the smart contract can freeze the funds and return them within 24 hours, quickly correcting the mistake.
Platform Failure Compensation
In response to the risk of exchange platform failures, Bitlayer's insurance protocol can automatically initiate a compensation mechanism when issues arise with connected exchanges, safeguarding user assets.
Actual Results
In the past six months, 80,000 users have participated in insurance, with a total insured amount exceeding $200 million. Case Study: A user mistakenly transferred 10 Bitcoins to an invalid address and recovered the assets through insurance within 3 hours.
Summary
Bitlayer's decentralized insurance protocol provides multiple protections for Bitcoin holders against private key loss, transfer errors, and platform failures, significantly enhancing asset security.
