Paris-based blockchain startup Stratumn, together with payment service provider LemonWay and consultancy giant Deloitte, unveiled the first micro-insurance proof of concept for the sharing economy – LenderBot.

LenderBot allows people to easily enroll in customized “microinsurance” simply by chatting through Facebook Messenger. Through a bot available on the messenger, the lender and borrower will be able to agree on the terms of a loan and digitally sign the agreement directly by interacting with the bot. The goal is to insure high-value items (e.g. cameras, smartphones, tablets) between individuals.

The partnership demonstrates the potential of new applications and services for the insurance market. Stratumn brings to Deloitte its technical expertise and blockchain application development platform, while Deloitte brings its knowledge of the financial services industry.

LenderBot also integrates a payment solution by LemonWay. Each step which defines the conditions of the loan and the payment of the insurance contract are notarized in the bitcoin blockchain, and are thus verifiable by all parties in the contract.

“Here we rely on the identification provided by Facebook and LemonWay to create a three-way contract between insured parties and the insurer. This transfer of confidence is reinforced by the use of cryptography and timestamped data in the blockchain. This guarantees data protection and traceability of every step in the subscription of the insurance contract.” said Richard Caetano, CEO of Stratumn.

When one person lends an item to another, the bitcoin blockchain serves as the trusted third party in the loan contract. Stratumn provides the tools which establish a Trusted Workflow, where each participant (lender, borrower, insurance company, payment provider) can append signed information to the process. Steps in the process are cryptographically linked together, notarized to the blockchain, and visible to all parties involved. The blockchain, independent of central authorities, guarantees a stability and immutability of information.