A Kenyan-based tech company utilizes the recently-introduced CBDC platform from Ripple to carry out payments to institutions for ecological insurance.
In a recent episode of one of The Futurum Group podcasts, host Steven Dickens interviewed Kennedy Ng’ang’a, the founder and CEO of a Nairobi-based technology company.
Ng’ang’a’s company specializes in providing ecological data to blockchain and submitted its Blockchain oracle service Block Beamer to the 2023 CBDC Innovate Challenge hosted by Ripple.
During the interview, Ng’ang’a explained that their company focuses on making ecological data available on the blockchain. With this, it supplies the blockchain with information on the natural environment. The data encompasses details like vegetation coverage, wildfire occurrences, and rainfall levels, crucial for applications like climate insurance.
The company’s solution aims to tap into the ecological data stored on the blockchain to drive parametric insurance. Ng’ang’a highlighted that their application targets institutional users, including insurance corporations, banks, microfinance, and microinsurance organizations.
The Ripple CBDC Platform is Essential
The Ripple CBDC platform plays a pivotal role in making this blockchain-based solution more accessible to traditionally risk-averse institutions. Recall that Ripple launched its CBDC platform in May to allow governments and financial institutions create their own digital currencies.
Since its launch, the platform has attracted several central banks and private financial institutions. A report suggested that up to 30 countries could potentially leverage the platform, with nations such as Palau already taking advantage of it. The recent interview with Ng’ang’a further spotlights its benefit.
The interview highlighted how CBDCs are instrumental in supporting humanitarian and environmental projects.
Ng’ang’a noted that CBDCs play a vital role in driving applications on web3, creating a hybrid solution that benefits corporate entities and humanitarian agencies delivering aid to those affected by climate risks.
The Shamba Network’s Role
Ng’ang’a detailed the Shamba network’s role in their parametric insurance solution. The Shamba Oracle, a leading ecological data Oracle, gathers information from satellites operated by entities like NASA and the European Space Agency.
This data undergoes analysis using geospatial science and machine learning. The oracle typically moves the data to provide on-chain information that triggers smart contracts and applications on the blockchain.
The parametric insurance solution pulls data from the Shamba Oracle to inform insurance decisions. When it detects climate risks, such as droughts, it triggers smart contracts to release CBDC funds stored within them.
This approach allows for efficient payments to affected populations, integrating CBDCs with local digital payment services for broader accessibility. Ng’ang’a disclosed that they have also incorporated an off-ramp feature to allow payments in local currencies.
He further clarified that their application is developed on the Ripple EVM sidechain. Notably, the integration with the Ripple CBDC platform is fundamental, allowing the CBDCs deployed on the main network to be held by the smart contracts powering their solution.
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