Bittensor App Gets Hack Risk Cover From Nexus Mutual-Backed Insurance Firm Native

In a significant development for the cryptocurrency ecosystem, Bittensor, a popular AI-driven network, has secured $25 million in blockchain-based insurance coverage against hacking risks from Native, a digital asset insurance specialist backed by Nexus Mutual.

Native, which operates as a broker and underwriter, arranged the cover for Team Rizzo, an operator of machine-learning businesses and staking validator services on Bittensor. The partnership aims to provide peace of mind for users who stake their tokens on the network's proof-of-stake (PoS) consensus mechanism.

Native co-founder Dan Ross stated that this is the first time Bittensor has been underwritten, highlighting the speed and efficiency with which Native arranged the cover. "This is the first time Bittensor has been underwritten," Ross said in an interview. "Team Rizzo wanted to buy their own policy to attract people to come and stake to their own validator and make them feel safe. So we've been able to create a new product, underwrite a new protocol, get third-party smart-contract cover with a $25 million limit in about four weeks. If we did that with traditional insurance, that's a three to six month thing at minimum — if it could be done at all."

The Bittensor policy is the latest addition to Native's portfolio of blockchain-based insurance products, which also include coverage for bitcoin staking platforms. The partnership demonstrates the growing demand for digital asset insurance, particularly in more experimental and esoteric realms like staking and decentralized finance (DeFi).

Nexus Mutual, a decentralized insurance alternative that backed Native in October last year, played a crucial role in facilitating this partnership. The company's unique approach to insurance, which incentivizes a community of members to deploy assets into blockchain-based syndicates, has attracted a significant following among DeFi operators.

A Growing Need for Insurance Coverage in Crypto

Hacks remain a persistent worry in the crypto ecosystem, where insurance coverage remains thin on the ground. The recent loss of $1.5 billion by Bybit, one of the largest cryptocurrency exchanges, to North Korea-linked hackers, highlights the need for robust security measures and adequate insurance coverage.

Native's Role in Filling the Insurance Gap

Native has emerged as a leader in digital asset insurance, providing access to Lloyd's for certain types of crypto-related insurance cover. The company's expertise in blockchain-based syndicates and its ability to facilitate partnerships with DeFi operators make it an attractive option for those seeking insurance coverage.

A New Era of Security for Bittensor

The partnership between Native and Team Rizzo marks a significant milestone for Bittensor, which has become one of the most consistent and performant validators on the network. The $25 million in blockchain-based insurance coverage will provide users with added peace of mind, knowing that their assets are protected against hacking risks.

"Team Rizzo has played the long game to become one of — if not the most — consistent and performant validators on Bittensor," said Bittensor founder Jake Steeves in a statement. "We're excited to partner with Native and bring this level of security to our users."