A customer reports a claim
The customer submits an amount. The contract records who submitted it and marks the claim Submitted.
FOR NON-TECHNICAL READERS
How the claim
ledger works.
A simple explanation of the business process and the blockchain technology behind it.
THE SHORT VERSION
Think of it as a shared rulebook.
A smart contract is a program stored on a blockchain. Instead of asking one central database to remember who approved a claim, the program applies the same rules every time and records the result in a shared transaction history.
The administrator verifies identity
The administrator performs KYC, meaning “know your customer.” This confirms that the person is allowed to continue.
The contract checks the rules
Approval is possible only when a claim exists, KYC is approved, and the contract has enough funds to cover it.
Payment is released
The administrator triggers settlement. The customer receives the claim amount and the claim becomes Paid.
THE KEY IDEAS
What the code
is doing for you.
State machine
The claim can move only in a defined order: Submitted → Approved → Paid. Invalid actions are rejected automatically.
Permission system
Customers and administrators have different powers. The onlyAdmin rule protects verification, balance checks, and payment.
Audit events
Each major change emits an event: NewClaim, ClaimApproved, or ClaimPaid. These logs create a traceable history.
On-chain settlement
The contract holds a funded reserve and transfers the approved amount directly to the customer wallet when payment is triggered.
WHY IT MATTERS
Less ambiguity.
More accountability.
The value of this pattern is not the interface. It is the combination of explicit business rules, role-based permissions, and a shared record of state changes. The Claim Ledger prototype applies those ideas to an insurance workflow.