Blockchain startup Abbott launches “Mutual Aid”

On July 9, 2016, the online mutual aid platform "Tongxin Club" (www.tongxinclub.com) was officially launched. Tongxin Club is the first project launched by blockchain startup Abbots Financial Technology. Abbots was founded by Yang Yongzhi, the original founder of Dolphin Browser. Its goal is to use online mutual aid as a starting point to continuously promote the application and development of blockchain technology in China. As the first real blockchain application in China, Tongxin Club combines open source code with practical applications, achieving a deep match between blockchain technology and online mutual aid.

Tongxin Mutual Aid has made two-way innovations in technology and products. In terms of technology, it has eliminated the defects of the traditional online mutual aid model through blockchain and big data technology, and established an open and transparent new online mutual aid platform. In terms of products, it has not only launched a non-differentiated experience version for the general public, but also launched online mutual aid products for segmented groups, and selected IT practitioners in health-stricken areas as the first group to enter, creating a precedent for innovation in the online mutual aid industry model.

Launched mutual aid products for IT people with a maximum guarantee amount of 900,000

The biggest highlight of Tongxin Mutual Aid's product innovation is the mutual aid plan for segmented groups. Yang Yongzhi, founder of Abbots, said: "The core of risk is pricing. Different groups have different incidence rates, which means different order rates. It is fairer and more reasonable to use groups as the classification standard." Tongxin Mutual Aid has targeted IT practitioners as the first segmented group because they are generally in a sub-healthy state and face computers for a long time, which poses many health risks. In addition, IT people have a higher acceptance of online mutual aid.

Tongxin Mutual Aid hopes to create a community concept. People who join the mutual aid plan can not only get a guarantee, but also have health-related discussions, find inner comfort and more help. Segmented groups have the same topics, which is more conducive to forming an active community. Tongxin Mutual Aid believes that online mutual aid is a serious act, and its fundamental purpose is to allow more people to get protection through everyone's participation, rather than a simple investment and purchase behavior.

To ensure the efficiency of collecting mutual aid funds, Tongxin Mutual Aid adopts a prepaid mutual aid model. If a member encounters misfortune, the mutual aid fund will be transferred from the pre-deposited account balance of other members after verification by the platform, adhering to the mutual aid principle of everyone for me and I for everyone. In order to attract more people to join the online mutual aid cause, experience the innovative online mutual aid model, and promote the further development of the business, people only need to pay 9 yuan of mutual aid funds to join the Tongxin Mutual Aid Undifferentiated Trial Edition and receive a maximum compensation of 300,000 yuan.

   Tongxin Mutual Aid launched a public mutual aid product that costs only 9 yuan to join, which means that people can join and experience Tongxin Mutual Aid's platform services with a small investment in the early stage, and then transition to become users of segmented products. In the segmented products that have been launched for IT people, Tongxin Mutual Aid has raised the entry threshold and set the mutual aid fund at 299 yuan. The coverage is also more comprehensive, covering three types of risks: major diseases, accidental injuries, and sudden death due to overwork, with a maximum coverage amount of up to 900,000 yuan.

Blockchain + big data technology eliminates the shortcomings of traditional mutual assistance model

In order to ensure the credibility of mutual assistance, the traditional online mutual assistance model adopts the form of third-party custody in the fund custody channel. This cannot solve the inherent development obstacles and potential risks in the model, such as the inability to prove the authenticity of user data, the inability to prove the security of pre-deposited mutual assistance funds, and the collusion between the platform and members to defraud mutual assistance funds. Tongxin Mutual Assistance uses blockchain and big data technology to achieve transparent operation of online mutual assistance and solve the biggest drawback of the traditional model - the trust problem between strangers.

Blockchain technology is the underlying core of the Bitcoin system. Its essence is a decentralized ledger. When people conduct transactions through the network, a new transaction will be recorded in the ledger. This ledger is a distributed ledger maintained by everyone in the network. People can see ongoing transactions at the same time, and the control is not in the hands of institutions or individuals. Transactions cannot be tampered with or forged, and they will be permanently stored in the ledger.

The technical characteristics of blockchain determine that Tongxin Mutual Aid has three major characteristics: First, all fund flows are open and transparent, and cannot be forged or tampered with. Each user can exercise the right to supervise. Second, all fund transfers can only be executed in accordance with public smart contracts, and cannot be misappropriated or interfered with artificially. Finally, each user's personal sensitive information will be highly encrypted and cannot be viewed by others. Based on the above three points, the doubts about the traditional network mutual aid model have been resolved one by one. Not only that, in order to ensure the authenticity of the order, Tongxin Mutual Aid has established a new "jury" system in the supervision mechanism, forming a professional identification system including lawyers, doctors, judges, police and other public officials to ensure the authenticity and reliability of each payment, and completely eliminate the most criticized defects of traditional network mutual aid.

Abbott's technical genes are in the same vein as Dolphin Browser, and it has many years of experience in browser kernel development, so it can master blockchain technology proficiently. This technical advantage is not only reflected in the blockchain. As the founder Yang Yongzhi, China's earliest mobile Internet entrepreneur, is a representative of domestic technology entrepreneurs. The application of big data in Tongxinshe products confirms this. He said, "Blockchain cannot be tampered with, but it can be associated. The application of big data can improve the operating efficiency of blockchain and achieve the purpose of optimizing products."

Compared with developed countries, my country's insurance industry has a relatively short development time, and the coverage rate of protection business, especially accident, serious illness, term life, household property and other protection insurance products is low, which makes it difficult for low-security and special groups to seek risk protection products. In this reality, online mutual assistance, as a supplement to social insurance and commercial insurance, can provide a group of low-security people with an option to keep warm, which has a positive insurance inclusion effect. Yang Yongzhi said, "Blockchain technology can be applied to all aspects of social innovation. Our vision is first to provide low-cost and adequate personal and property protection for the people who need it most in China, so that insurance can benefit the general public. After that, we are willing to open up this technical solution so that more fields can benefit from the popularization of blockchain technology."