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Blockchain Asset Management - How it Helps Your Business Succeed

11 June 2018

What is Blockchain?

Blockchain, the technology behind cryptocurrencies; can be thought of as an open and widely distributed ledger that can document transactions and information between two entities precisely - in an undeniable and everlasting way. It is administered and verified by members of the network, conventionally known as miners. The market potential of Blockchain is huge where according to statistics, the market size of blockchain technology is set to reach USD 2.3 billion by 2021.

What is Asset Management?:

Asset management can be defined as an organized practice of evolving, running, sustaining, promoting, and clearing out of assets in a prudent manner.

Blockchain and Asset Management:

If you ask- is blockchain the next big trend in asset management? The answer will be- yes it is. The asset management value chain can be transformed with the aid of blockchain technology and the enterprises that embrace it early will harvest the rewards. This technology has the capacity to revolutionize and acclaim asset management business value chains. Also, it is in early stages of progression and is beckoning the opportunities.

Think of a world where people carry a reliable digital identity associated with their transaction history and financial records. Fraudulently, no transaction (financial or asset-based) can take place, owing to a transparent environment and strict security features of blockchain technology.

BlockChain Technology

Advantages of Blockchain in Asset Management:

There are few noted advantages of adopting blockchain technology in asset management across various domains and sectors:

  1. Enhanced Security: The best feature that blockchain technology can offer to enterprises is improved and strict data security. It actually does far more than securing your data by totally transforming the way it is stored and accessed. It not only secures the data but also offers an irreversible evidence of all transactions which are always available.

  2. Greater Speed: Blockchain technology is safe as well as fast; it can provide you with the data on a real-time basis.

  3. Boosted Working Efficiency: At first sight, you may wonder how duplicating a database across numerous nodes can improve the efficiency than can be accomplished with one central database. Actually, the efficiency benefit mainly comes from the configuration of the blockchain. To share information to another node, rather than sending the information, the nodes update their own records and everyone is on same page. The underlying technology will automatically validate the information and matches data at all the nodes.

  4. Client Onboarding: Onboarding new clients is a time-consuming process in an asset management industry. Validating client recognition, asset possession rights, capital sources, nuptial status, profession, political tie-ups, commercial speculations, and citizenship can take much time. Blockchain can help streamline the process of data collection and validation.

  5. Streamlining Portfolio Management: Blockchain technology offers best in class and highly methodical data structures to cater to the needs of portfolio management requirements of the institutions. It can speed up interactions among asset managers, investors, and third parties.

  6. Trade Clearance: At present, trading infrastructures are not capable enough of handling clearance and settling of trades; they take days to complete these jobs. Blockchain technique can purge the distinction between a deal and the clearing of the transaction by taking required approval from the concerned parties.

  7. Use of Smart Contracts: Blockchain technology facilitates creation and usage of the so-called smart contracts which are nothing but comparatively small blocks of code that automate certain identified tasks.

 

Impact of Blockchain Technology on Hospitality and Construction:

The trusted, tamper-proof, and encoded security infrastructure of Blockchain Development technology, smart contracts, fast auditing and provenant transactions can supplement hospitality and construction sectors in a big way. Hospitality and construction domains require streamlining of portfolio management, client onboarding, and trade clearance services along with blazing fast transaction speed which makes blockchain technology highly favourable for them.

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Tajinder Singh Web Architect

At Debut, Tajinder has led projects in the areas of Mobile computing, Cloud computing, Web Application Servers, Java, TCP/IP, real-time collaboration software, and high-performance transactional systems. 

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