The insurance company Lemonade has entered into a partnership with well-known blockchain companies to form a decentralized autonomous organization (DAO) Lemonade Crypto Climate Coalition (L3C) to protect farmers against climate change by offering blockchain-based insurance.

The insurance company founded the Lemonade Foundation, a non-profit organization dedicated to social and environmental change using blockchain-based technology. The foundation will work closely with L3C members, including Chainlink, Avalance, DAOstack, Etherisc, Hannover Re, Pula and Tomorrow.io.

Climate insurance will take the form of a decentralized application (DApp) on the avalanche platform. DApp will also allow farmers to make and receive payments using cryptocurrency or their local currency. According to the announcement, DApp will be launched in Africa in 2022.

The foundation was created to create technologies that have an exponential impact, said Daniel Schreiber, director of the Lemonade Foundation. In doing so, Schreiber said, “they expect to use the community and decentralized aspects of Web 3 and real-time weather data to provide immediate and affordable climate insurance to the people who need it most.”

The move is expected to affect around 300 million farmers in Africa. “Most people face real climate risks for their livelihoods because traditional compensation-based insurance is often out of reach or out of reach,” said Rose Goslinga, co-founder of Pula, a Kenyan technology insurance company. Gosling notes that the chain solution will have a scalable positive effect on the region.

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Chainlink, one of the co-founders of L3C, plans to contribute its team and technology. “We plan to make the Chainlink team and platform available to L3C to protect the millions of farmers who depend on their growth from the devastating effects of climate change,” said Chainlink co-founder Sergey Nazarov.

Meanwhile, the report shows that the number of cryptocurrency users in Africa increased by 2500 percent in 2021. Data from the KuCoin stock exchange indicate that cryptocurrency transactions in the region have grown exponentially in 2021. For this reason, the region accounts for around 2.8% of global trading volume. .

Source: CoinTelegraph

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