Design and Development of Insurance System Based on PoW Consensus Algorithm

Abstract

Since the outbreak of the epidemic, people not only need to pay attention to their own safety and health, but also need insurance services to protect themselves. However, there are some problems in the traditional insurance system. First, the information of clients is incomplete or untrue. Second, privacy is compromised. Third, transaction information is tampered with. These problems lead to various insurance disputes. Therefore, this paper develops an insurance system based on blockchain by using the characteristics of decentralization, transparency, and immutability. The construction of the system is divided into three steps. First, insurance contracts are published on the Merkel tree. Next, RSA encryption technology is used to protect clients' information security. Last, SHA256 secure hash algorithm and consensus mechanism are used to resist the external attack of the blockchain. On this basis, this paper designs and develops a safe insurance system. Also, it studies the performance of insurance systems and the consensus mechanism of blockchain. The former compares the differences between the traditional insurance system and the blockchain insurance system in each performance index during operation. The result shows that some performance indices of blockchain insurance system are lower than those of traditional insurance system. However, because of its higher security than traditional insurance system, blockchain technology is selected as the core technology of this system. Also, two consensus algorithms, PoW and PBFT, compares with each other in blockchain technology. The experimental results show that the PoW consensus algorithm is more suitable for blockchain insurance system.