- How will Ethereum smart contracts handle Bitcoin bonds and insuranse policies? Ethereum smart contracts can directly control ETH or Ethereum-based tokens only.
Bonds and policies are handled in the Ethereum blockchain only. If the policy in issued for a BTC account then the bond is nominated in BTC.
For such a case, Inchain based on the Ethereum smart contracts data may initiate a payout from a bitcoin wallet. Every transaction (or a set of transactions) should be signed by a certain number of members of the Insurance committee to go through. These members act as escrows, signing genuine transactions.
So the BTC insurance or bond payments will be performed manually, right? Smart contract state will change and people from the committee will see it and initiate the payments? That will require some centralized servers watching ethereum smart contract states.
How technically will smart contract's data initiate a BTC payout? Smart contracts don't have any API's. How will you process thousands of BTC coupon payments after the bonds expiration? Manually? Automatically? If automatically then it would require some centralized servers too, right?
So smart contracts will serve as an accounting system only for BTC bonds and insurances? It means the InChain system for BTC market can be designed on almost any blockchain, right?