Agro Crop Protocol

Agro Chain Protocol is designed to protect farmers against a wide range of risks that can impact crop production. These risks include weather events, pests, diseases, and other unforeseen circumstances that can lead to crop loss. The concept involves assessing the risk for individual farmers, calculating premiums based on this risk, and providing financial compensation if an insured event occurs. The flowchart provided outlines a detailed process involving several entities to ensure transparency, efficiency, and accuracy in providing insurance to farmers. The process starts with the farmer providing necessary data and undergoing verification. The data is then used to assess risk and calculate the insurance premium. Once the farmer pays the premium, they receive insurance coverage. In the event of a claim, a multi-tiered approval process ensures that claims are valid, and payouts are justified. This system leverages technology and multiple layers of verification and approval to provide robust and reliable agricultural insurance to farmers. This approach ensures that the insurance process is transparent, efficient, and fair, reducing the potential for fraud and ensuring that farmers receive the financial support they need when faced with crop loss due to various perils. Below is the flow of the application:

1. Farmer: • Verification: The process begins with the farmer, who must first verify their identity or eligibility using a system called World ID. This step ensures that only legitimate farmers can participate in the insurance scheme. • Data Submission: After verification, the farmer submits location and crop data through a Web2 API. This data includes details about the farm's geographical location, types of crops grown, and other relevant information that can affect risk assessment.
2. World ID: • Verification System: World ID is a digital identity verification system that confirms the farmer’s identity. This ensures that the data submitted is authentic and the farmer is eligible for the insurance services.
3. Chain Link: • Data Management: Chain Link acts as an intermediary that collects the location and crop data from the farmer and ensures its integrity before forwarding it to the risk assessment entity. • Premium Calculation: Once the risk factor is determined, Chain Link also handles the calculation of the insurance premium that the farmer must pay to obtain coverage.
4. Risk Factor Calculation: • Risk Assessment: This entity receives the farmer’s data from Chain Link and uses it to calculate the risk factor associated with the farmer’s crops. The risk factor is a measure of the likelihood of crop loss due to various perils. • Data Utilization: The risk assessment involves analyzing historical weather data, pest and disease outbreaks, and other environmental factors that can impact crop yield.
5. Premium Calculation: • Determining Premiums: Based on the calculated risk factor, the premium calculation entity determines the cost of the insurance premium. This premium reflects the level of risk and ensures that the insurance coverage is appropriately priced.
6. Insurance: • Policy Issuance: After the premium is calculated and paid by the farmer, the insurance entity issues a policy that covers the specified risks. The terms of the policy detail the coverage provided, including the events that would trigger a claim. • Claim Handling: If an insured event occurs (e.g., severe weather damaging crops), the farmer can file a claim to receive compensation.
7. Authorized Parties: • Claim Approval: The insurance claim must be reviewed and approved by at least five authorized parties. These parties ensure that the claim is legitimate and meets the policy criteria. • Staking and Authorization: Authorized parties stake coins as part of their involvement, providing a financial incentive for accurate and fair claim assessments. They receive a small percentage of the insured amount for their services in authorizing claims.

Below is the breakdown of the technical component and the process involved :

1. Authentication - World ID The farmer uses a World ID system to authenticate their identity. This ensures that only verified individuals can proceed with the insurance process. The World ID system employs a Proof of Human-ness mechanism, which uses biometric verification (such as iris scanning or fingerprint recognition) to confirm that the user is a real human and not a bot or an automated entity. This step ensures the integrity and legitimacy of users interacting with the insurance platform. The verification process includes ZKSnark technology. This cryptographic proof ensures privacy and security, confirming the user's identity in a way that prevents data breaches or misuse of personal information. To combat the risk of Sybil attacks, where a single entity creates multiple identities to manipulate the system, the World ID system integrates robust Sybil resistance mechanisms. This involves using unique biometric data and decentralised verification to ensure that each user is unique and legitimate.

2. Data Transmission - Chainlink: Communicates with Web2 API The farmer sends relevant data, including their location and crop details, to Chainlink. ChainLink acts as an oracle, bridging the gap between the blockchain-based insurance platform and Web2 APIs to fetch and verify the required data.

3. Data Provision - Chainlink: Risk Factor Calculation: Provides location and crop data The farmer inputs relevant data into the system, including location (GPS coordinates) and crop details (type, acreage, expected yield). Chainlink acts as an oracle to bridge the blockchain-based insurance platform and external Web2 APIs, enabling the integration of real-world data into the smart contract ecosystem.

4. Risk Assessment - The Risk Factor Calculation module processes the data to determine the risk factor associated with insuring the farmer's crops. This factor is then passed to the Premium Calculation module.

5. Premium Determination The Premium Calculation module uses the risk factor to calculate the insurance premium that the farmer must pay. This calculated premium is then communicated back to the farmer.

6. Policy Purchase The farmer decides to purchase the insurance policy by paying the calculated premium to the insurance provider.

7.Claim Initiation In the event of a loss, the farmer initiates an insurance claim with the insurance provider.

1. Claim Verification The insurance claim must be reviewed and approved by five authorised parties. These parties are responsible for verifying the legitimacy of the claim.

2. Authorization The authorised parties review the claim and, if deemed valid, authorise it. Their approval is necessary for the claim to be processed further.

3. Staking and Incentivization The authorised parties stake coins as part of their commitment to the verification process. Upon authorising claims, they receive a small percentage of the insured amount as a reward for their service.

This comprehensive process ensures that the farmer's identity is securely verified, the risk is accurately assessed, and the claims are processed transparently and fairly, with the added assurance of human verification through the World ID system, enhanced by ZKSnark technology and Sybil resistance measures.