Formal Verification for Blockchain-based Insurance Claims Processing

TL;DR

This paper applies formal verification techniques to blockchain-based insurance claims processing to ensure security and reliability, focusing on verifying chaincodes involved in various claim stages using model checking.

Contribution

It introduces a formal modeling approach using LTL to verify chaincodes in blockchain insurance claims processes, enhancing security and correctness.

Findings

Formal verification of chaincodes can identify security breaches.

Model checking helps ensure reliable claims processing.

The approach improves trustworthiness of blockchain insurance systems.

Abstract

Insurance claims processing involves multi-domain entities and multi-source data, along with a number of human-agent interactions. Use of Blockchain technology-based platform can significantly improve scalability and response time for processing of claims which are otherwise manually-intensive and time-consuming. However, the chaincodes involved within the processes that issue claims, approve or deny them as required, need to be formally verified to ensure secure and reliable processing of transactions in Blockchain. In this paper, we use a formal modeling approach to verify various processes and their underlying chaincodes relating to different stages in insurance claims processing viz., issuance, approval, denial, and flagging for fraud investigation by using linear temporal logic (LTL). We simulate the formalism on the chaincodes and analyze the breach of chaincodes via model checking.