Introducing better verification measures can go a long way to protecting consumers.
Amazon and eBay are often held up as good examples of how transactions should be handled in the wider economy. These sites often deliver impartial reviews based on the past activities of buyers and sellers, meaning it is easier for consumers to find someone reputable. Measures are also in place to protect both parties if a transaction doesn’t go to plan.
A multitrader marketplace called Kuverit is aiming to bring this to the crypto and fiat world alike. The company claims it is building the world’s first peer-to-peer platform that is designed to protect consumers from financial loss in fraudulent transactions, meaning they are guaranteed to get their money back. Through its infrastructure, users will be able to check the reputation of the person they are about to deal with, and view a baseline score that is partially calculated as a result of Know Your Customer checks.
Transactions of up to $5,000 in value can be guaranteed through the use of a guarantor, who is paid a fee to ensure that both sides receive their funds. Transactions that are larger than this are protected through so-called “co-op pools” where the risk is spread across multiple guarantors, a feature that is better suited for businesses and those who are making large deals. When something goes wrong, supporting evidence is provided to voters and auditors who look at the case and resolve the dispute. Niche protection pools also offer a financial shield for events that otherwise would have been uninsurable.
With trillions lost to fraud every year, Kuverit says its goal is to reduce customer anxiety, help establish trust within the community, and reduce the stress, uncertainty and apprehension that the crypto industry has been struggling to shake off in its quest for mainstream adoption.
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